Back in profit. Repairs lead.
Revenue slipped 3.0% from a year ago to LKR 7.49 Bn, yet a loss of LKR 565 Mn became a profit of LKR 164 Mn. Ship repair carried the quarter: it earned more Gross Profit than the whole group.
Share price
- Close, 16 October 2026
- LKR 113.25
- Results declared
- 16 October 2026
Jul–Sep 2026 results, line by line
| LKR Mn | Jul–Sep 2026 | YoY | QoQ |
|---|---|---|---|
| Revenue | 7,485 | −3.0% | +28.1% |
| Gross Profit | 1,557 | +53.4% | +28.5% |
| GP Margin | 20.8% | +7.7 pts | +0.1 pts |
| Operating Profit | 461 | To profit | +71.8% |
| OP Margin | 6.2% | +6.5 pts | +1.6 pts |
| Profit Before Tax | 167 | To profit | +107.6% |
| Profit After Tax | 164 | To profit | +103.9% |
| PAT Margin | 2.2% | +9.5 pts | +0.8 pts |
YoY against the same quarter a year ago. QoQ against the previous quarter.
What drove it
- 01How a LKR 525 Mn loss became a profit
Profit Before Tax moved from a loss of LKR 525 Mn in Jul–Sep 2025 to a profit of LKR 167 Mn, led by LKR 542 Mn more Gross Profit.
- 02Ship repair carried the quarter
Ship repair made LKR 1,825 Mn of Gross Profit, more than the group’s LKR 1,557 Mn, because shipbuilding still made a gross loss of LKR 460 Mn at a −26.2% Gross Margin.
- 03Operating Cash Flow more than doubled
In the first half, April to September, Operating Cash Flow was LKR 5,307 Mn against LKR 2,315 Mn a year earlier, and a LKR 1,379 Mn loss after tax became a LKR 244 Mn profit.
Valuation at LKR 113.25
*First half annualised. Over the last 12 months the company made a loss, so the earnings multiples use the first half, annualised.
Three things to watch next quarter
- Shipbuilding. Does the gross loss narrow from LKR 460 Mn, a −26.2% Gross Margin?
- Ship repair. Does it hold its 37.2% Gross Margin as it grows?
- Finance costs. Do net finance costs keep falling from LKR 295 Mn a quarter, with LKR 19.11 Bn of borrowings?
The company
Capital Trust Securities. For information only. Not investment advice.