Select Technologies has reported net income of Rs. 2.70 billion for the financial year that ended on June 30, 2026, which is an increase of 107 percent from Rs. 1.30 billion a year earlier. The Lahore based manufacturer assembles Xiaomi smartphones and televisions, and it has expanded into home appliances of Hisense, including air conditioners and televisions. The result stands out in a year that has been difficult for the consumer electronics industry in Pakistan, since the company has shown that it can earn considerably more money from each product that it sells, even when overall sales are falling. The profit for the year is therefore more than double the figure that was reported for the previous year.
The improvement in profit came while the business became smaller in terms of sales. Revenue declined by 35.5 percent, from Rs. 48.89 billion to Rs. 31.56 billion, which is a fall of about Rs. 17.33 billion. This means that the company effectively doubled its profitability while operating a substantially smaller business by sales value. Net income rose by roughly Rs. 1.40 billion over the same period, so the gain in earnings cannot be explained by higher sales. The figures show that the company moved away from the usual link between revenue and profit, and that the explanation has to be found in the costs and margins of the business.
According to the report, the explanation lies in a combination of better product margins, changes in the economics of the manufacturing arrangements of the company, lower financing costs and an unusually large reduction in its tax expense. Management held discussions with analysts at Arif Habib Limited on October 15, 2026, in which the company said it believes it can sustain much of the improvement. It also said it expects to return to growth through expanded smartphone production and an aggressive push into the domestic home appliances market, where it has begun to work with Hisense on air conditioners and televisions.
These plans are important for Select Technologies, which only recently became a separately listed company after its initial public offering in July 2026. The company has therefore reported its first full year of results close to its listing, and it has already described the next stage of its growth. Its projections for the future depend on a recovery in demand for smartphones, since expanded smartphone production is one of the two pillars of the plan, together with home appliances. If demand for phones improves, the company would be able to combine higher volumes with the stronger margins that it achieved in the year ended June 30, 2026.
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