Corporate News
View all(60)## LCB Finance Surges: 9-Month PBT Jumps 100% to Rs. 443 Mn 📈
Lanka Credit and Business Finance PLC (LCB Finance) reported a stellar performance for the nine months ended December 31, 2025, doubling its profitability as the non-banking financial institution (NBFI) sector capitalizes on a domestic credit rebound. • Profitability Highlights • Profit Before Tax (PBT): Rs. 443.4 Mn, a precise 100% YoY increase compared to the previous period. • Profit After Tax (PAT): Significant growth supported by a sharp rise in net interest income, which surged over 82% to Rs. 3.28 Bn. • Earnings Per Share (EPS): Increased to Rs. 5.48, up from Rs. 4.03 YoY. • Balance Sheet & Assets • Total Assets: Expanded to Rs. 10.38 Bn, reflecting a 12.2% growth since March 2025. • Loan Portfolio: Strong momentum in gold loans and leasing, key drivers for rural credit penetration and MSME support. • Net Asset Value (NAV): Rose to Rs. 4.02 per share, signaling enhanced shareholder stability. • Operational Efficiency • Cost-to-Income Ratio: Maintained at a lean 49%, underscoring disciplined expense management during a high-growth phase. • Expansion: The company is on track to expand its reach to 25 branches, focusing on the co-operative sector and rural diversification.
📈 Dialog Axiata FY 2025: Strong Growth & National Contribution
Dialog Axiata PLC announced robust financial results for FY 2025, driven by core business expansion and cost rescaling. The Board recommended a dividend of Rs 1.50 per share, reflecting a 5.0% yield. • Overall Financial Performance • Headline Revenue: Rs 179.6 Bn (+5% YTD) • Core Revenue: Up 16% YTD, fueled by Mobile, Fixed Line, and Digital Pay TV • EBITDA: Rs 86.0 Bn (+30% YTD); margins improved to 47.9% • Net Profit (NPAT): Rs 20.8 Bn (+67% YTD); Normalized NPAT up >100% • Operating Free Cash Flow: Rs 49.3 Bn (up >100% YTD) • Sector & Subsidiary Highlights • ICT/Broadband: Group invested Rs 20.2 Bn in high-speed infrastructure; Dialog 5G Ultra now has 220+ sites and 1.5 Mn subscribers. • Fixed & International (DBN): Revenue fell 28% to Rs 35.5 Bn due to scaling down low-margin wholesale, but NPAT surged >100% to Rs 6.1 Bn. • Television (DTV): Maintained 1.6 Mn subscribers; Revenue grew 4% to Rs 12.9 Bn. • Connectivity: Company-level revenue (76% of Group) rose 18% to Rs 135.8 Bn. • National Impact & Future Outlook • Tax Contribution: Remitted Rs 54.7 Bn to GoSL (Rs 11.1 Bn direct; Rs 43.6 Bn indirect). • Disaster Recovery: Committed Rs 420 Mn for Cyclone Ditwah relief (hospital and school ICT restoration). • Future Investment: Plans to invest US$ 100 Mn over two years to expand 5G nationwide.
📈 Amazon AI Blitz: US$ 200 Bn Capex Surge Triggers Share Tumble
Amazon has projected a massive 50% increase in capital expenditures for 2026, driven by a global race to build out artificial intelligence infrastructure. Despite record revenues, shares dropped 11.5% in after-hours trading as investors weighed the immense costs against near-term returns. • Core Financials & AWS Growth • Amazon Web Services (AWS) revenue reached US$ 35.6 Bn in Q4, growing 24% YoY. • While AWS growth is the highest in 13 quarters, it trails competitors Google Cloud (+48%) and Microsoft Azure (+39%). • Total Q4 revenue hit US$ 213.4 Bn (+14% YoY), with advertising sales jumping 22% to US$ 21.3 Bn. • AI Infrastructure & Tech Investments • Projected 2026 Capex: US$ 200 Bn, significantly exceeding analyst estimates of US$ 146.6 Bn. • Spending focuses on AI chips (Trainium/Graviton), data centers, and the Leo satellite internet project. • Total spending by the "Big Four" hyperscalers is expected to exceed US$ 630 Bn this year. • Retail Pivot & Logistics • Amazon is retreating from physical retail, closing all 72 Amazon Fresh and Go stores. • Strategy shift: Doubling down on Whole Foods with 100+ new stores and a 225,000-sq-ft mega-store. • Cost-cutting: 30,000 corporate layoffs implemented since late 2025 to drive AI-led efficiencies. _Summary based on provisional Q4 2025 financial data._
📈 India’s Mazagon Dock Launches Mandatory Offer for Colombo Dockyard
India’s state-controlled Mazagon Dock Shipbuilders Ltd (Mazagon) has announced a Mandatory Offer (MO) to acquire all remaining shares of Colombo Dockyard PLC at Rs. 40 per share. This follows Mazagon’s recent acquisition of a 41.73% stake (164.9 million shares) for Rs. 6.6 Bn via unsubscribed rights. • Transaction Details: The MO targets the remaining 58.27% (230.3 million shares) of the company. While the offer price is Rs. 40, the market price closed significantly higher at Rs. 152.25 yesterday. • Strategic Shift: Mazagon, an Indian "Navratna" PSU, aims to increase its holding to at least 51% through a tripartite agreement with Onomichi Dockyard Company Ltd (ODCL). This marks a major entry into the Sri Lankan marine engineering and ship repair sector. • Key Financials: • Offer Price: Rs. 40 per share. • Current Market Price: Rs. 152.25 (as of Feb 5). • Net Assets: Rs. 46.21 per share. • Major Stakeholders: Mazagon (41.73%), Senthilverl Holdings (12.2%), and ODCL. • National Impact: This acquisition by an Indian defense-linked entity strengthens bilateral ties in the maritime and logistics sector, potentially enhancing Sri Lanka’s capacity for naval vessel repair and commercial shipbuilding. The MO is unconditional, and a detailed offer document will be dispatched to shareholders within 35 days.
### JAT Holdings Records 7% Revenue Growth Amid Cyclone Challenges 📈
JAT Holdings PLC demonstrated resilience in Q3 FY 2025/26, overcoming disruptions from cyclone Ditwah while marking a significant milestone in its global expansion strategy. • Overall Financials • Revenue: Up 7% YoY to Rs. 8.1 Bn. • Gross Profit: Increased 14% YoY to Rs. 2.95 Bn. • GP Margin: Strengthened to 36% (from 34%) due to vertical integration and pricing discipline. • Profit After Tax (PAT): Fell 23% YoY to Rs. 774 Mn, impacted by storm-related sales losses and tax adjustments. • Sector & Market Performance • Local Revenue: Grew 9% YoY, led by wood coatings, decorative paints, and EV charger manufacturing. • Export Revenue: Remained stable at Rs. 2.01 Bn (+0.5% YoY). • Bangladesh: Faced a 16% YoY decline but showed a 9% recovery QoQ, indicating a stabilization trend. • Strategic Global Expansion • Mirotone Acquisition: Acquired New Zealand’s leading industrial wood coatings firm (established 1935). • Australasia Entry: The move provides immediate access to the Australian market with a relaunch planned within 6 months. • Vertical Integration: Efficiency gains from internal production of acrylic binders and alkyd resins continue to support margin expansion. _Note: Results reflect a recovery trajectory for Q4 based on pent-up domestic demand._
📈 Hemas Holdings: Resilient 9M Growth Led by Healthcare
Hemas Holdings PLC (HHL) reported a steady performance for the nine months (9M) ended December 2025, with earnings rising 7.5% YoY to Rs. 5.9 Bn. Performance was bolstered by a 9.4% revenue increase to Rs. 96 Bn and reduced finance costs, despite a softer Q3 impacted by Cyclone Ditwah. • Market Performance: HHL shares surged 68% YoY, significantly outperforming the ASPI (+41.9%) and S&P SL20 (+26.6%), reflecting strong investor confidence. • Sector Breakdowns: • Healthcare: The primary driver, with revenue up 14.6% to Rs. 57.6 Bn and earnings growing 17% to Rs. 3.2 Bn. Strong demand in pharmaceutical distribution and hospitals (inpatient/outpatient) offset cyclone disruptions. • Consumer Brands: Revenue grew marginally to Rs. 36.5 Bn with earnings at Rs. 4.2 Bn. Seasonal shifts in the learning segment (Atlas) and cyclone-led distribution issues dampened quarterly results. • Mobility: Revenue up 18.5% to Rs. 1.7 Bn, driven by maritime volume growth and the new China–India Express service. • Strategic Moves: • Established Hemas AI Labs and initiated group-wide digital transformation. • Leadership transition: Ajith Fernando assumed the role of Chairman on 1 Jan 2026, succeeding Husein Esufally. • Committed Rs. 230 Mn for post-cyclone humanitarian relief and SME support. • Outlook: Recovery trends are evident in early 2026 as demand stabilizes and operating conditions improve nationwide.
📈 CIC Holdings Reports Rs. 70.3 Bn Revenue in 9MFY26
Agriculture-heavy conglomerate CIC Holdings demonstrated resilience during the nine months ending December 2025, overcoming climate disruptions to post steady growth. • Overall Performance: Consolidated revenue reached Rs. 70.28 Bn, up 8.69% YoY. Profit After Tax (PAT) grew to Rs. 5.97 Bn (vs. Rs. 5.7 Bn last year), while Operating Profit (EBIT) rose to Rs. 9.67 Bn. Gross profit margins improved to 26%. • Sector Breakdowns: • Crop Solutions: Remained the primary driver with Rs. 32.32 Bn revenue (44.7% of total), growing from Rs. 28.06 Bn despite Cyclone Ditwah impacting Maha season cultivation. • Livestock Solutions: Revenue rose to Rs. 14.6 Bn, supported by steady growth in poultry and veterinary care. • Health & Personal Care: Earned Rs. 14.46 Bn, bolstered by herbal health product exports and resilient domestic demand for pharmaceuticals. • Industrial Solutions & Agri Produce: Contributed Rs. 6.28 Bn and Rs. 4.64 Bn respectively. • Strategic Context: The Group’s diversified portfolio mitigated losses in agri-operations caused by cyclone-related cultivation disruptions. The focus remains on food security and healthcare access through export-driven growth and disciplined cost management.
Court Dismisses Case Against Asia Capital 📈
The Fort Magistrate’s Court has summarily dismissed a criminal case filed against Asia Capital PLC and several of its former employees, clearing the company of all charges. • Case Overview: The action was initiated by CC Trust Ltd, a Japanese-owned investor based in Singapore, alleging a criminal breach of trust. • Financial Scope: The dispute involved a sum of approximately US$ 6 million linked to a Shareholders’ Agreement dated 1 September 2017. • Court Ruling: The court dismissed the case, concluding that the allegations were baseless. Asia Capital PLC maintained that the matter was a commercial transaction rather than a criminal one. • Impact: The discharge absolves the company’s directors and staff of criminal liability, resolving a significant legal hurdle that had affected the firm's reputation in the investment banking and leisure sectors.
📈 MILCO Returns to Profit: Dividends for Dairy Farmers After 21 Years
Prime Minister Dr. Harini Amarasuriya announced a historic turnaround for the State-Owned Enterprise (SOE) MILCO, marking the first time in over two decades that profits have been shared directly with the farming community. • Financial Performance: MILCO recorded its highest-ever sales turnover in 2025, achieving a historic net profit within a 16-month turnaround period. • Farmer Incentives: A total of 22,000 dairy farmers are set to receive incentives. Dividend payments were symbolically presented to 2,000 farmers, covering all provinces. • Social Security: The program introduced the Farm/Farm Family Insurance and awarded pension membership certificates under the Dairy Farmer Retirement Scheme in partnership with the Social Security Fund. • Sector Impact: The government emphasized transforming livestock and dairy sectors through "economic democracy," focusing on minimizing fraud and corruption to make SOEs efficient and people-oriented. The move signals a shift toward inclusive growth, integrating local producers into the national production process while ensuring high standards and proper industry procedures.
⚖️ Arrest Warrant Issued for Shamindra Rajapaksa in Airbus Fraud Case
The Colombo Fort Magistrate’s Court has ordered the Criminal Investigation Department (CID) to arrest and produce Shamindra Rajapaksa, the youngest son of former Speaker Chamal Rajapaksa, in connection with the long-standing SriLankan Airlines Airbus scandal. • Case Context: The inquiry focuses on alleged financial fraud and bribery during the 2013 purchase of 14 Airbus aircraft for the national carrier. • Suspect Status: Shamindra Rajapaksa has been named the 3rd suspect. The court also directed the CID to seek an INTERPOL Red Notice, as the suspect is currently reported to be in the US. • Primary Accusations: • Kapila Chandrasena (former CEO) and his wife are the 1st and 2nd suspects. • Allegations involve a US$ 2 Mn bribe accepted from a French Airbus entity, later laundered through international accounts. • Investigations revealed a transfer of US$ 160,000 into an account belonging to Shamindra Rajapaksa in 2013. • Impact: The fraudulent deal and subsequent cancellation of aircraft orders reportedly cost the debt-burdened national carrier approximately US$ 400 Mn in losses and penalties. _Status: Based on ongoing magisterial inquiry and CID submissions (Feb 2026)._
📈 Commercial Bank to Raise Rs. 20 Bn via Debentures & Launch ESOP
Commercial Bank of Ceylon PLC has announced major capital-raising and internal equity plans to strengthen its financial position and align with Basel III requirements. • Debenture Issue Details: The bank aims to raise up to Rs. 20 billion through Basel III-compliant Tier II listed, rated, unsecured, subordinated, redeemable debentures. • Structure: Initial tranche of Rs. 10 billion (100 million debentures), with two optional tranches of Rs. 5 billion each in case of oversubscription. • Maturities: Options of five, seven, and 10 years at a face value of Rs. 100 each. • Key Feature: Includes a non-viability conversion feature as per regulatory standards. • Employee Share Option Plan (ESOP): A new ESOP will be established for the 2026-2028 period to drive employee engagement within the banking & financial services sector. • Equity Dilution: Capped at 3% of ordinary voting shares (up to 46,195,156 shares). • Current Capital: As of Jan 29, 2026, stated capital is ~Rs. 91.65 billion, represented by over 1.5 billion voting shares. • Regulatory Status: Both the debenture issue and ESOP are subject to approvals from the Colombo Stock Exchange (CSE) and shareholders. _Note: Based on official bank disclosure as of February 3, 2026._
Galle Face Capital Partners Announces 1:4 Share Split 📈
Galle Face Capital Partners PLC (WAPO) has approved a subdivision of its ordinary shares to enhance market liquidity. The decision, finalized by the Board on 31 January 2026, follows a period of significant share price appreciation. • Share Subdivision Details • Existing shares: 29,582,029 units. • New total shares: 118,328,116 units. • Split ratio: 1 share split into 4. • Stated capital: Remains unchanged at approx. Rs. 650 Mn. • Market Performance • Market Reaction: Share price rose by Rs. 22 (+20.7%) to close at Rs. 128. • Trading Volume: Over 1 million shares traded with a turnover exceeding Rs. 138.8 Mn. • Net Assets: Reported at Rs. 97.68 per share as of Dec-2025. • Ownership & Governance • Major Shareholders: Ceylon Land & Equity PLC (27.76%) and Shaw Wallace & Hedges (23.88%). • Public Float: 29.99% held by over 500 shareholders, meeting CSE compliance. This move by the investment & capital markets firm is intended to make shares more accessible to retail investors without altering the company's underlying value. The effective date for the split will be announced via the Colombo Stock Exchange (CSE) shortly. _Note: Based on provisional corporate disclosures._