Islamabad: Shifa International Hospitals Limited reported a 10.7 percent increase in consolidated net profit to Rs2.47 billion for the year ended June 30, 2026, compared with Rs2.23 billion in the previous financial year.
The increase amounted to Rs239.1 million, according to the company’s audited financial statements. The healthcare group’s net revenue rose nearly 12 percent to Rs31.32 billion from Rs27.97 billion, an increase of Rs3.35 billion.
Consolidated earnings per share increased to Rs39.85 from Rs35.72 a year earlier. The board has recommended a final cash dividend of Rs5 per share for the financial year.
Profit attributable to Shifa’s shareholders rose 11.7 percent to Rs2.522 billion from Rs2.258 billion. The attributable profit exceeded total group profit because losses of Rs51.1 million were allocated to minority shareholders in subsidiaries, compared with Rs26.1 million last year.
Separately, the parent company’s unconsolidated net profit increased 19.9 percent to Rs2.793 billion from Rs2.329 billion, while earnings per share rose to Rs44.12 from Rs36.84. The separate accounts cover the parent company, while consolidated accounts include its subsidiaries and adjust for transactions within the group.
The group’s operating costs increased 12.8 percent to Rs26.87 billion from Rs23.81 billion, or by Rs3.06 billion. Finance costs rose 17.8 percent to Rs407.1 million from Rs345.7 million, while provisions for expected credit losses doubled to Rs282.2 million from Rs141 million.
Other income increased 28.3 percent to Rs491.6 million from Rs383.2 million. Group profit before income tax rose 3.8 percent to Rs4.213 billion from Rs4.059 billion.
Income tax expense declined 4.7 percent to Rs1.742 billion from Rs1.827 billion, helping net profit grow faster than pretax earnings. However, the group’s net profit margin edged down to 7.89 percent from 7.98 percent.
Despite the increase in accounting profit, net cash generated from operating activities fell 9.1 percent to Rs3.704 billion from Rs4.076 billion. The cash flow statement showed Rs647.9 million absorbed by changes in trade receivables, compared with Rs168 million last year, while income tax paid rose to Rs2.268 billion from Rs1.591 billion.
The group invested Rs4.534 billion in property, plant and equipment during the year, compared with Rs1.581 billion in the previous year. The capital spending exceeded net operating cash flow by Rs829.9 million.
Total assets increased 18.4 percent to Rs29.61 billion from Rs25.01 billion, while the carrying value of property, plant and equipment rose to Rs19.74 billion from Rs14.99 billion.
Total secured long-term financing, including the portion due within a year, increased 76.7 percent to Rs1.959 billion from Rs1.109 billion. Cash and bank balances at the end of June declined to Rs2.784 billion from Rs3.762 billion a year earlier.
A Shifa International Hospital official said the financial performance should be viewed alongside the investment required to sustain specialised private healthcare in Pakistan, where public hospitals face capacity and resource constraints.
The official said Shifa continued to invest in advanced equipment, specialised clinical services, research and skilled staff, including transplant services for liver, kidney, cornea and bone marrow patients, as well as ambulance and home healthcare services.
Unlike public hospitals that receive budgetary support, private hospitals must generate revenue to meet operating costs, reinvest in services and remain financially viable, the official said, adding that Shifa was also a major employer, taxpayer and provider of assistance to patients unable to afford treatment.
Shifa, incorporated in 1987 and listed on the Pakistan Stock Exchange under the symbol SHFA, earns revenue through inpatient and outpatient treatment, surgery, diagnostic services, pharmacy sales, laboratory work and home healthcare.