Blue Ex Limited Reports Rs15.6 Million Loss in FY2026 as Operating Profit Declines Sharply
Blue Ex Limited has reported a net loss of Rs15.63 million for the financial year ended June 30, 2026, compared with a net profit of Rs99.93 million in the preceding financial year, reflecting a significant decline in the company’s financial performance.
According to the company’s consolidated financial statements, revenue decreased slightly to Rs1.322 billion during FY2026, compared with Rs1.343 billion in FY2025. The company’s gross profit also declined to Rs451.90 million from Rs521.99 million in the previous year.
The decline in gross profit, coupled with higher administrative and other operating expenses, significantly affected the company’s profitability. General and administrative expenses increased to Rs378.83 million from Rs330.95 million, while marketing and selling expenses stood at Rs10.48 million.
The company also recorded an allowance for expected credit losses of Rs29.77 million, compared with Rs1.91 million in FY2025.
Consequently, operating profit fell sharply to Rs32.82 million against Rs177.84 million in the previous financial year.
At the pre-tax level, Blue Ex Limited reported a loss of Rs9.27 million, compared with a profit before taxation of Rs141.13 million in FY2025. After accounting for taxation, the company posted a net loss of Rs15.63 million.
Earnings per share also turned negative, standing at Rs0.055 per share, compared with positive earnings of Rs0.364 per share in the corresponding previous year.
Balance Sheet Shows Growth in Total Assets
Despite the decline in profitability, the company’s consolidated balance sheet showed growth in total assets. As of June 30, 2026, total assets increased to Rs2.56 billion from Rs2.06 billion a year earlier.
Current assets rose to Rs2.01 billion from Rs1.50 billion, largely supported by an increase in trade debts, which reached Rs1.69 billion compared with Rs1.28 billion in FY2025.
Cash and bank balances also improved considerably to Rs194.56 million from Rs62.35 million.
Total equity increased to Rs1.28 billion from Rs1.24 billion. However, current liabilities also climbed to Rs1.25 billion from Rs750.64 million, indicating increased short-term financial obligations.
Cash Flow Position Improves
The company’s cash flow statement showed net cash generated from operating activities of Rs59.59 million during FY2026, compared with Rs122.28 million in the previous year.
Net cash used in investing activities stood at Rs57.89 million, while financing activities generated Rs128.23 million.
As a result, cash and cash equivalents increased to Rs194.56 million at the end of FY2026, compared with Rs64.64 million at the end of FY2025.
Overall, Blue Ex Limited’s FY2026 financial results reflect pressure on profitability despite modest changes in revenue and an improvement in its cash position. The substantial decline in operating profit and the shift from annual profit to loss highlight the importance of controlling operating costs, managing credit exposure and improving margins in the coming financial year.
