Service Long March Tyres Corporate Briefing Presentation FY2026

Key takeaways

• Service Long March Tyres Limited is incorporated in 2020 as a joint venture of Servis Group and Chaoyang Long March, operating on a 50-acre SEZ complex at Nooriabad with tax concessions to 2032.
• Total capital expenditure invested in the platform stands at Rupees 42.7 billion with a current capacity of 2.0 million tyres per year.
• Export revenue for FY2026 reached Rupees 18.5 billion, accounting for 36% of total tyre volume shipped abroad across 5 international markets led by the US and Brazil.
• Local market share for truck and bus radial tyres rose significantly to 62% in FY2026 compared to 15% in FY2023.
• Net revenue compounded at 64% annually since FY2023 to reach Rupees 71,709 million in FY2026 with a gross margin of 25.3%.
• Operating profit grew at a CAGR of 166% since FY2023, totaling Rupees 14,261 million in FY2026.
• Profit after taxation reached Rupees 13,529 million in FY2026, reflecting a CAGR of 59% since FY2024.
• The company announced a dividend payout of 48% of profit after taxation, translating to Rupees 0.83 per share (restated for the October 2025 share split) for FY2026.
• Shareholders equity grew 3.8 times since FY2023 to reach Rupees 45,733 million as of June 30, 2026.
• Solar electricity generation more than doubled to 12.2 million units in FY2026 with 12 MWp solar capacity operating, representing 23% of total electricity consumed.
• A 7.5 MW wind power project is currently under construction with target commissioning in December 2026, which will take total renewable capacity to 19.5 MW and renewable share to 40%.
• The company contributed Rupees 55 million to community initiatives, including Rupees 45 million to Servis Foundation and Rupees 10 million to the Welfare of Troops and Shuhada fund.
• Installed capacity is planned to expand from 2.0 million tyres today to 5.6 million tyres by FY2030 through the addition of passenger car radial tyre capacity.
• The passenger car radial (PCR) project represents a total project cost of Rupees 22.56 million to add 2.0 million passenger car radial tyres per year on 9 acres already owned at Nooriabad.
• Funding mix for the PCR project comprises 50% long-term loans (Rupees 11.3 billion), 34% IPO proceeds (Rupees 7.7 billion), and 16% internal cash.
• Commercial production for the PCR project is targeted for January 2028 with civil contracts awarded, calender line ordered, and trial runs planned for late 2027.
• Key challenges identified include unprecedented raw material cost increases, with natural rubber at US$2,616 per ton as of October 13, 2026 (highest in 13 years) and carbon black at US$1,850 per ton (highest in 24 months), alongside increasing export competition from Cambodia and Vietnam.