Secure Logistics–TRAX Group Limited, formerly known as Secure Logistics Group Limited, reported a consolidated profit after tax of Rs546.5 million for the six months ended June 30, 2026, compared with Rs438.6 million in the same period last year.
According to the company’s unaudited financial statements, consolidated revenue increased to Rs1.54 billion during the period from Rs1.46 billion a year earlier, reflecting continued business activity. However, the cost of services rose significantly to Rs982.7 million from Rs654.8 million, resulting in gross profit declining to Rs558.2 million from Rs802.1 million.
Despite the pressure on gross margins, the group benefited from other income of Rs183.3 million, while administrative expenses fell to Rs433.8 million from Rs550 million. Operating profit stood at Rs124.3 million, compared with Rs252.1 million in the corresponding period of 2025.
The group posted Rs266 million profit before levies and tax, while profit after taxation reached Rs546.5 million. Profit attributable to equity holders of the holding company amounted to Rs548.3 million, compared with Rs434.5 million a year earlier. Basic and diluted earnings per share stood at Rs1.30, against Rs1.55 in the same period last year.
Balance Sheet Strengthens
The company’s consolidated total assets rose to Rs10.49 billion as of June 30, 2026, from Rs9.98 billion at the end of December 2025. Equity increased to Rs8.20 billion, compared with Rs7.62 billion at year-end.
Accumulated profits also increased substantially to Rs2.77 billion from Rs2.22 billion, supporting the overall improvement in the group’s equity position.
The company also recorded a higher long-term loan balance of Rs528.2 million, while short-term loans increased to Rs350 million from Rs205 million at December 31, 2025.
Parent Company Profit Also Rises
On an unconsolidated basis, Secure Logistics–TRAX Group posted revenue of Rs582.4 million for the six months, compared with Rs679.4 million in the corresponding period of 2025.
Nevertheless, the company’s profit after taxation increased to Rs555 million from Rs438.6 million. A key contributor was the Rs450.5 million share of profit from an associate, compared with Rs339.2 million a year earlier.
The parent company’s total assets increased to Rs9.84 billion from Rs9.07 billion at the end of December 2025, while unappropriated profit rose to Rs2.71 billion from Rs2.16 billion.
Cash Flow Remains a Key Area to Watch
Despite reporting higher profits, the group experienced negative operating cash flow during the first half of 2026. Net cash outflow from operating activities stood at Rs167.8 million, compared with a net inflow of Rs600.1 million in the same period last year.
The company also spent Rs101.5 million on investing activities, primarily on fixed assets. As a result, cash and cash equivalents at the end of the period stood at a negative Rs41 million on a consolidated basis.
Overall, Secure Logistics–TRAX Group delivered stronger bottom-line performance in the first half of 2026, with consolidated profit rising by roughly 25% year-on-year. The results show improved profitability despite higher service costs, while the decline in operating cash generation remains an important financial consideration for the company going forward.
