First National Equities Reports Strong Turnaround, Posts Rs250 Million Profit in FY2026
First National Equities Limited has reported a significant improvement in its financial performance for the year ended June 30, 2026, moving from a loss in the previous year to a substantial profit.
According to the company’s consolidated financial statements, First National Equities recorded profit after tax of Rs250.11 million for FY2026, compared with a loss of Rs78.68 million in FY2025. The company’s basic and diluted earnings per share also improved to Rs0.09, from a negative Rs0.03 reported for the previous year.
The turnaround was supported by a sharp increase in investment-related gains. During the year, the company reported Rs19.96 million in realized gains on the sale of investments, while unrealized gains on investments classified at fair value through profit or loss reached Rs21.38 million. The company also recorded Rs337.84 million in unrealized gains on strategic investments, taking gross profit to approximately Rs396.71 million, compared with Rs19.75 million a year earlier.
Operating expenses remained significant, with consolidated administrative expenses reported at Rs58.13 million and other operating expenses at Rs20.19 million. Despite these costs, operating profit stood at Rs318.39 million, compared with an operating loss of Rs80.63 million in FY2025.
After accounting for other income, finance costs and other charges, the company reported profit before tax of Rs292.44 million. Taxation amounted to Rs42.33 million, resulting in the final profit after tax of Rs250.11 million. Of this amount, Rs250.11 million was attributable to owners of the parent company, while a small Rs1,004 loss was attributed to non-controlling interest.
The company’s overall financial position also strengthened during the year. Consolidated total assets increased to approximately Rs2.04 billion as of June 30, 2026, compared with Rs1.72 billion at the end of FY2025. Net assets rose to Rs1.33 billion, up from Rs1.08 billion a year earlier.
Cash-flow performance also showed improvement. The consolidated statement of cash flows reported net cash outflows from operating activities of Rs30.65 million, while investing activities generated a net cash inflow of Rs53.27 million. After financing outflows of Rs20.56 million, cash and cash equivalents increased to Rs11.28 million at the end of FY2026 from Rs9.23 million a year earlier.
The company’s total comprehensive income for FY2026 stood at Rs252.69 million, compared with a comprehensive loss of Rs63.72 million in the previous year. This included an unrealized gain of Rs2.58 million on investments classified at fair value through other comprehensive income.
On an unconsolidated basis, First National Equities reported an even higher profit after tax of Rs257.44 million, compared with a loss of Rs78.68 million in FY2025. Its total comprehensive income reached Rs260.02 million during the year.
Overall, the FY2026 financial statements show a marked year-on-year turnaround for First National Equities, with the company benefiting substantially from gains on its investment portfolio and strategic investments. The results represent a notable change from the losses recorded in FY2025, although the financial statements also show that investment-related gains were a major contributor to the year’s profitability.
