SRPL was incorporated as a private limited Company on 21 December 2023 in Pakistan under the Companies Act, 2017. The Company is a wholly owned subsidiary of SIL. The Company's registered head office is located at Servis House, 2 Main Gulberg, Lahore.

The Group traces its origins back to the late 1930s in Lahore, where its founders, Ch. Muhammad Saeed, Ch. Nazar Muhammad and Ch. Mohammad Husain began manufacturing and supplying handbags and sports goods across the subcontinent. SIL was formally incorporated as a private limited entity in 1957 and later converted into a public limited company on September 23, 1959. In 1954, SIL installed a shoe manufacturing plant in the industrial area of Gulberg, Lahore, commencing large-scale footwear production the same year. Around this time, its first retail outlet on Mall Road was established, which later became a dedicated Servis store. In 2016, Servis Group launched its footwear retail network under the brand name “Shoe Box.” In 2022, this network was rebranded under the iconic heritage name “Servis.” In 2024, SIL transfer its Retail Undertaking to its wholly owned subsidiary namely, Service Retail (Private) Limited, through an approved Scheme of Arrangement.

The principal line of business of SRPL is to carry on the sale, trading, retail, wholesale, marketing, and import, of footwear, bags, apparel, accessories, and other items/products. SRPL manages a nationwide retail network, which expanded to 286 outlets as of 6MCY26, up from 283 in CY25. These outlets are strategically located across Pakistan to cater to a diverse customer base, with a majority presence in the Punjab province. SRPL’s retail operations are supported by a robust supply chain and centralized management structure, ensuring consistent product availability and service quality. Its product portfolio primarily comprises locally manufactured footwear, sourced from different vendors. Service Retail operates entirely in the domestic market, with growth entirely dependent on local demand dynamics and enhanced retail penetration.

SRPL operates as a wholly owned subsidiary of Service Industries Limited, which holds 100% ownership in the Company. This close integration provides SRPL with strong strategic and financial backing from its parent entity, enabling synergies in brand recognition, supply chain management, and market outreach.

SRPL’s ownership structure is considered stable, as the controlling stake is held by Service Industries Limited, a well-established entity with over seven decades of presence across multiple industries.

The business acumen of the sponsors is regarded as strong, anchored by the longstanding involvement of the sponsoring families who remain actively engaged in guiding the Company. With decades of experience in footwear the sponsors have consistently demonstrated strategic foresight and execution capabilities that have driven Company’s sustained growth. The sponsors have established SRPL’s flagship brand “Servis” as a household name in Pakistan. This proven track record of building scale, brand equity, and international reach underscores the sponsors’ robust business acumen.

SRPL being the entity of Servis Group maintains a healthy financial profile with substantial access to domestic market. As of 6MCY26, the Servis Group reported a consolidated asset base of ~PKR 151.4bln and consolidated revenues of about ~PKR 84.8bln (CY25: ~PKR 148bln), reflecting its robust financial position and market reach.

The Board of Directors of SRPL comprises five members, including the Chief Executive Officer (CEO). The composition reflects diversity in expertise across regulatory affairs, industry operations, and business leadership, supporting effective decision-making and strategic oversight.

Mr. Arif Saeed has served as Chairman of Service Global Footwear Limited, Engineering Development Board, and founding Chairman of major public sector power companies, in addition to leading APTMA and Lahore Stock Exchange. He is also the chairman of Daanish University Trust and Pakistan Revenue Automation (Private) Limited. Mr. Omar Saeed, previously CEO of SIL (2011–2018), currently serves as CEO of Service Long March Tyres Limited and Servis Foundation, and sits on the boards of Nestlé Pakistan, Systems Limited and Service Global Footwear Limited, also he is the Chairman of Export Development Fund (EDF). Mr. Hassan Javed is a director at STPL and is the chairman of SIL, has served as CEO of Service Global Footwear Limited, and has also chaired the Pakistan Footwear Manufacturers Association and Gujranwala Electric Supply Company. Mr. Saif Javed serves as Head of a business unit at Service Global Footwear Limited. Mr. Kashif Aziz Khwaja, the CEO, Director on the Board of Speed Private Limited, and Board of Trustees for the Cadet College Hassan Abdal Endowment Fund Trust. He has served at British American Tobacco (BAT) as Brand manager where he held Senior Leadership positions across Pakistan, Vietnam, Korea, Hong Kong, and Australia. He served as a Global Brand Manager for Gold Leaf. He was also the Group Brand Manager Premium portfolio BAT for New Zealand, Soloman Island and PNG. He later built Shoe Box from scratch, a footwear brand, which he successfully transitioned into Servis, one of the fastest-growing and most efficient footwear businesses in the region.

The Board of SIL, the parent company of SRPL, convenes quarterly meetings with a predefined agenda to review SRPL’s management performance and ensure alignment with the Company’s strategic objectives. Proceedings are formally documented, and action items are communicated to relevant stakeholders for timely execution. To further strengthen governance, the formation of specialized committees could provide more focused oversight and facilitate efficient decision-making.

The external auditors are M/s. Riaz Ahmad & Co., Chartered Accountants, having satisfactory QCR Rating and also classified in category “A” on the SBP's panel of auditors. The auditor expressed an unqualified opinion on the financial statements of the Company for the year ending December 31st, 2025.

On group level, the Company is structured into multiple operational entities, each overseen by specialized management teams tailored to their respective functions. Clear reporting lines, defined roles, and accountability mechanisms ensure operational efficiency and effective oversight. The Company also benefits from the stability of having all key positions filled, with senior management experienced in leading both domestic operations and international ventures. This professionalized governance structure underpins SRPL’s ability to effectively discharge its operational responsibilities and support sustainable growth of Servis Group.

The management team comprises seasoned professionals with extensive industry knowledge and functional expertise. Mr. Kashif Aziz Khwaja, the CEO, Director on the Board of Speed Private Limited, and Board of Trustees for the Cadet College Hassan Abdal Endowment Fund Trust. He is supported by executives including Mr. Babar Ali (Group CFO), a Chartered Accountant with over 21 years of experience. Syed Faisal Rizvi (Head of Finance), an ACCA-qualified finance professional with approximately 20 years of experience in financial management, financial planning and analysis, budgeting, treasury, and financial reporting. Other senior team members include specialists in finance, technical operations, human resources, sales, and marketing, many of whom have long tenures with the Servis Group, ensuring both continuity and depth of expertise.

With the support of an experienced team of professionals, SRPL has gradually strengthened its business profile, expanding operations across various cities in Pakistan over the years. The management functions are clearly defined, enabling effective pursuit of strategic objectives. The Company’s ability to execute its expansion strategy demonstrates management’s capacity to deliver on stated plans.

The Company is presently using Microsoft Dynamics 365 Finance & Operations. Its advanced retail-focused features, including seamless POS integration, demand forecasting, and omni-channel capabilities, make it better aligned with SRPL’s business model and growth trajectory. The deployment of such technology infrastructure enhances efficiency, ensures transparency, and enables management to monitor performance effectively. This setup is in line with industry best practices for information-based decision-making.

For operational efficiency and appraisal of internal controls, the Company has an in-house team of qualified professionals at all levels to implement and monitor the policies and procedures. Segregation of duties and clarity of roles minimize operational risk, while occupancy of key positions supports continuity of processes. A centralized internal audit function further strengthens the framework by ensuring compliance with established controls and driving continuous improvements. The integration of operations with ERP-based systems provides additional built-in checks, thereby reducing the scope for conflict of interest and reinforcing a process-driven culture.

Pakistan’s footwear industry is a key segment of the manufacturing sector and meets an essential consumer need, employing over one million people. Production is concentrated in Lahore, Gujranwala, and Sheikhupura, while domestic demand is estimated at ~600 million pairs annually, according to the Trade Development Authority of Pakistan (TDAP). The market remains fragmented, with organized players, including Stylo, Bata, Ndure, Servis (SRPL), and Borjan, competing alongside a sizeable cottage industry that caters largely to lower-priced segments. The five organized players reported ~4.0% growth in FY26.

On the external front, Pakistan’s footwear exports recorded a 23.2% increase in volume during FY26, while export proceeds remained broadly unchanged at PKR 49.3bln. In USD terms, export earnings declined marginally by 0.5% to USD 175.6mln, indicating lower average export realization. Leather footwear remained the principal export category by value, while volume growth was primarily driven by ‘other footwear’. Key destinations included Germany, the US, Italy, the Netherlands, and the Middle East. Export volumes fell ~10.5% in July and August 2026, with value down ~1.2% to USD 33.2mln. As SRPL operates entirely in the domestic market, the relevance of these trends is indirect, through the pricing and capacity decisions of its local vendors.

The sector’s outlook is supported by the size of the domestic demand base, export potential, and possible policy facilitation. However, headline CPI inflation re-entered double digits at ~11.2% in August 2026 before easing to ~10.3% in September 2026, which constrains discretionary spending and raises rent, wage, and input costs for retailers. Exchange-rate volatility and subdued external demand remain challenges. The continued dominance of the unorganized sector, particularly in low- to mid-priced categories, intensifies price competition but also allows organized retailers to gain share through formal channels, established brands, and differentiated offerings.

Within the retail footwear segment, SRPL holds a leading position among organized players serving domestic demand. The Company offers a diverse product range for men, women and children across income brackets, supported by competitive pricing. Its wide retail network and accessible price points allow it to capture a sizeable share of the mass market while also serving mid-tier urban demand. This positioning strengthens brand visibility and helps SRPL withstand competition from both organized players and the unorganized and grey market.

SRPL’s net revenue increased by ~12.8% to ~PKR 14,454mln in CY25 (CY24: ~PKR 12,812mln), driven by ~8.1% volume growth and a ~4.3% increase in average realization. In 6MCY26, revenue grew by ~5.6% YoY to ~PKR 7,581mln. Annualized volumes were ~4.6% above CY25 levels, while average realization remained broadly unchanged, indicating that growth was primarily volume-driven, with limited contribution from pricing and product mix. The addition of three net outlets, taking the total to 286 at 6MCY26 (CY25: 283), supported growth, alongside higher throughput across the network. Footwear remained the core revenue driver, contributing ~96.1% of 6MCY26 revenue (CY25: ~95.3%), while accessories, bags, and apparel collectively accounted for the remaining ~3.9%.

SRPL’s gross profit margin declined to ~49.5% in CY25 (CY24: ~50.4%) but improved to ~51.2% in 6MCY26 (6MCY25: ~49.9%), as cost of sales grew by ~2.7%, below revenue growth of ~5.6%. Operating profit margin increased to ~17.6% in 6MCY26 (6MCY25: ~15.0%; CY25: ~13.8%), supported by a reduction in distribution costs to ~26.8% of revenue from ~28.9%, despite network expansion, partly reflecting lower depreciation. Net profit margin also strengthened to ~7.5% in 6MCY26 (6MCY25: ~5.6%; CY25: ~4.5%; CY24: ~3.1%), primarily driven by higher operating profit of ~PKR 259mln, supplemented by lower finance costs. The ten largest suppliers accounted for ~49% of CY25 purchases, with the largest contributing ~9.1%, indicating a reasonably diversified supplier base.

SRPL’s sustainability remains contingent on maintaining sales productivity per outlet and preserving margins, particularly as network expansion has been modest. Diversification beyond footwear remains limited, with accessories, bags, and apparel contributing ~3.9% of 6MCY26 revenue (CY25: ~4.7%), while apparel sales declined during the period. This concentration leaves revenue largely dependent on footwear demand and competitive positioning. On the cost side, SRPL continues to advance its energy transition, with ~41% of its retail network solarized. Solar generation increased ~53% in CY25, while electricity costs declined ~5.2% and decreased to ~3.0% of revenue from ~3.5%, despite higher sales, supporting cost efficiency. Leases remain a structural fixed cost, as right-of-use depreciation and lease interest together equaled ~11.8% of CY25 revenue, which makes profitability sensitive to store productivity and renewal terms.

The Company’s inventory days stood at 86 in 6MCY26 (CY25: 97, CY24: 100) as stock-in-trade declined ~4.1% while revenue grew, indicating faster stock turnover across retail outlets. Trade receivable days remained minimal at 2 in all periods, reflecting a predominantly cash-based sales model. Payable days declined from 33 in CY24 to 29 in CY25 and 24 in 6MCY26, as vendor credit reduced relative to purchases, shifting inventory funding to short-term bank borrowings. The net working capital cycle improved to 65 days in 6MCY26 from 71 days in CY25 (CY24: 68 days). Current ratio rose to ~2.5x from ~2.3x at CY25.

SRPL’s interest coverage improved to 38.8x in 6MCY26 (CY25: 12.7x; CY24: 4.8x), reflecting improved cash flow coverage of financing costs. The debt service coverage ratio also strengthened to ~37.2x in 6MCY26 from ~12.2x in CY25. The debt payback period remained nil in CY25 and 6MCY26 (CY24: 0.7x), as borrowings are short-term and exclude operating lease liabilities, indicating a manageable debt repayment profile relative to operating cash flows.

SRPL’s capital structure remains leveraged, although leverage has improved, declining to ~62.7% in 6MCY26 from ~72.0% in CY25 (CY24: ~75.9%). The improvement was driven by a ~9.7% reduction in short-term borrowings and a ~38.4% increase in equity to ~PKR 1,690mln. The debt profile comprises entirely short-term borrowings, primarily utilized to finance working capital requirements.