Service Long March Tyres Limited (SLM) aims to raise its domestic market share to over 70% in the coming quarters, up from 62%, management said during an analyst briefing on FY26 results and the future outlook.

According to AHL Research, management highlighted rising raw material costs, driven by higher natural rubber and carbon black prices, and indicated that another tyre price increase is likely within the next 30 to 60 days after a recent 5% hike. The company expects to pass on most of the cost impact by December 2026, while acknowledging near-term margin pressure.

SLM also plans to finance much of its expansion through the State Bank of Pakistan’s export-oriented financing scheme and is increasing its focus on renewable energy, with a 7.5MW wind project under installation that will raise renewable energy’s share of total consumption to around 40%.

On exports, management said shipments to Egypt are expected to generate $7-10 million over the next 12 months, while initial entry into European markets has begun. The company has also started supplying tyres to Saudi Arabia and sees further growth opportunities in the GCC region.

Management welcomed the government’s approval to increase customs duty on imported truck tyres from 16% to 27%, saying the move would improve SLM’s competitiveness in the local market. The company further reiterated its intention to distribute around 40% of profit after tax as dividends going forward.