First National Equities Limited (FNEL) reported a remarkable turnaround in its financial performance for the nine months ended March 31, 2026, posting a profit after tax of Rs422.28 million, compared with a loss of Rs39.85 million during the same period last year. The strong recovery was primarily driven by substantial gains on strategic investments and improved investment-related income.
The brokerage and investment company recorded net revenue of Rs9.72 million, up from Rs5.68 million in the corresponding period of FY2025. In addition, FNEL earned Rs6.83 million in realized gains from the sale of investments, reversing a realized loss reported a year earlier. A major contributor to earnings was a fair value gain of Rs439.04 million on strategic investments, significantly boosting the company’s overall profitability.
As a result, gross profit surged to Rs468.11 million, compared with Rs18.48 million in the same period last year. Meanwhile, administrative expenses declined to Rs30.54 million from Rs57.26 million, while finance costs nearly halved to Rs6.55 million, reflecting improved cost management.
After accounting for taxation of Rs7.86 million, the company reported earnings per share (EPS) of Rs0.16, compared with a loss per share of Rs0.01 in the corresponding period. The company also noted that the EPS calculation reflects the share split implemented on January 31, 2026, which increased the number of outstanding shares while reducing the face value per share from Rs10 to Rs1.
On the balance sheet, FNEL’s financial position strengthened considerably. Total assets increased to Rs2.15 billion as of March 31, 2026, from Rs1.72 billion at the end of June 2025. The increase was largely driven by the growth in strategic investments, which rose to Rs1.51 billion from Rs1.07 billion. Net assets also improved to Rs1.51 billion, while retained earnings turned positive at Rs342.90 million, compared with an accumulated deficit of Rs92.33 million at the end of the previous financial year.
The company’s cash flow statement showed that operating activities generated a cash outflow of Rs16.92 million, while investing activities produced net inflows of Rs34.31 million, mainly due to the sale of marketable securities and dividend receipts. Financing activities reflected the repayment of borrowings amounting to Rs20.56 million. Cash and cash equivalents stood at Rs6.05 million at the end of the reporting period.
Overall, First National Equities delivered a strong financial turnaround during the first nine months of FY2026, supported by significant appreciation in strategic investments, stronger investment income, and lower operating costs. The results underscore the company’s improved financial health and reinforce the importance of its investment portfolio in driving earnings growth.
