First Capital Equities Limited (FCEL) has reported a return to profitability for the nine months ended March 31, 2026, supported by stronger investment income, although the company posted a significant loss during the third quarter of the fiscal year. The financial results were approved by the Board of Directors in its meeting held on April 28, 2026. The company did not announce any cash dividend, bonus shares, or right issue.
For the nine-month period, FCEL recorded a net profit after tax of Rs. 8.49 million, compared with a profit of Rs. 42.72 million in the corresponding period last year. Earnings per share (EPS) from continuing operations stood at Rs. 0.060, down from Rs. 0.306 a year earlier, reflecting a decline in overall profitability despite remaining in positive territory.
The company’s income was primarily driven by unrealized gains on the remeasurement of investments at fair value, which amounted to Rs. 60.55 million, compared with Rs. 43.77 million in the same period last year. FCEL also earned Rs. 1.90 million in dividend income and realized Rs. 804,203 from the sale of short-term investments, helping offset finance costs and operating expenses.
However, the third quarter proved challenging. FCEL reported a quarterly net loss after tax of Rs. 93.50 million, significantly wider than the Rs. 28.54 million loss recorded in the same quarter last year. The decline was mainly attributed to a sharp unrealized investment loss of Rs. 76.44 million during the quarter, highlighting the volatility of market-driven investment valuations.
On the balance sheet, the company maintained a solid asset base, with total assets increasing to Rs. 1.29 billion as of March 31, 2026, compared with Rs. 1.24 billion at the end of June 2025. Total equity also improved to Rs. 531.97 million, while accumulated losses narrowed to Rs. 881.38 million from Rs. 889.88 million over the same period.
FCEL’s short-term investments rose sharply to Rs. 183.71 million from Rs. 83.57 million, indicating increased investment activity. Meanwhile, the company fully settled its long-term financing during the period, although current liabilities increased due to a higher current portion of long-term financing. Cash and bank balances improved modestly to Rs. 1.87 million at the end of March 2026.
The company’s cash flow statement showed net cash used in operating activities of Rs. 1.55 million, while investing activities generated Rs. 9.51 million, mainly through proceeds from property sales and dividend receipts. Financing activities resulted in an outflow of Rs. 7.58 million, leading to a modest overall increase in cash during the period.
Despite the sharp quarterly setback, First Capital Equities remained profitable for the first nine months of FY2026. Going forward, the company’s financial performance is expected to remain closely tied to movements in capital markets and the valuation of its investment portfolio.
