The company has reported a significant improvement in profitability for the first quarter of the 2026-27 financial year, with profit for the period rising to Rs 499.79 million from Rs 4.88 million in the corresponding period last year. The financial results for the quarter ended September 30, 2026, indicate a substantial increase in earnings, although the company’s revenue and cost structure show a notable change compared with the previous year.

Revenue and Gross Profit Performance

According to the company’s interim financial statements, revenue reached Rs 11.72 billion during the quarter, compared with Rs 4.16 billion in the same period of the previous year. However, the cost of sales increased to approximately Rs 11.69 billion from Rs 4.99 billion.

As a result, the company recorded a gross profit of Rs 38.79 million, compared with a gross loss of Rs 831.40 million in the corresponding quarter last year. The improvement in gross results represents a significant change in the company’s operating performance.

Higher Other Income Supports Earnings

Other income amounted to Rs 922.45 million during the quarter, compared with Rs 1.29 billion in the same period last year. The company also reported a share of net profit from an investment accounted for under the equity method of Rs 397.42 million, compared with no such amount reported in the corresponding period.

Administrative expenses stood at Rs 141.13 million, while other operating expenses amounted to Rs 28.86 million. Finance costs increased to Rs 427.16 million from Rs 5.02 million in the previous year.

Despite these expenses, profit before levies and income tax reached Rs 761.52 million, compared with Rs 211.11 million a year earlier.

Net Profit and Earnings Per Share Improve

After accounting for levies and income tax, the company reported profit before income tax of Rs 614.96 million. Income tax expenses amounted to Rs 115.18 million, resulting in a net profit of Rs 499.79 million for the quarter.

In comparison, the company recorded a profit of only Rs 4.88 million in the corresponding period of the previous year. Basic and diluted earnings per share also increased to Rs 0.57 from Rs 0.01.

The sharp increase in net earnings highlights a substantial improvement in the company’s bottom-line performance during the reporting period.

Financial Position and Cash Flow

The company’s balance sheet showed total assets of approximately Rs 79.01 billion as of September 30, 2026, compared with Rs 83.42 billion at the end of June 2026. Total equity increased to Rs 56.73 billion from Rs 56.23 billion over the same period.

Cash flow information also reflected significant investment and financing activity. The company reported net cash used in operating activities of approximately Rs 8.63 billion, while investing activities generated net cash of Rs 2.31 billion. Financing activities used approximately Rs 1.10 billion.

Cash and cash equivalents stood at negative Rs 2.80 billion at the end of the period, compared with positive Rs 1.08 billion in the corresponding period of the previous year, according to the presented cash flow statement. This movement makes liquidity and working capital important areas to monitor in future reporting periods.

Outlook

The latest financial results demonstrate a strong improvement in quarterly profitability, supported by a return to gross profit and a substantial increase in net earnings. However, the company’s finance costs, operating cash flows and reported cash position remain important factors for investors to assess alongside its improved earnings.

Future performance will depend on the company’s ability to sustain profitability, manage financing costs and strengthen its cash flow position. Investors will be watching subsequent financial results to determine whether the improvement in earnings can be maintained over the coming quarters.