Fitch Assigns 'AAA(lka)' Rating to Hayleys Rs. 7 Bn Debentures 📈

Fitch Ratings has assigned a National Long-Term Rating of 'AAA(lka)' to Hayleys PLC’s proposed Rs. 7 billion unsecured senior redeemable debentures, reflecting the group's dominant market position and diversified revenue streams. • Financial Performance & Outlook Revenue Growth: Projected to rise by 19% in FY26, driven by consumer and retail, hand protection, and purification sectors. Margins: EBITDA margin expected at 10% for FY26 (slight dip from 11% in FY25) due to textiles export softening and US tariff pressures, with recovery to 11% forecast for FY27. Leverage: Net leverage (EBITDAR) expected to steady at 3.0x–3.5x for FY26-FY28. • Sector & Market Highlights Export Strength: Direct and indirect exports accounted for 53% of FY25 revenue; 15% stems from US/EU markets. Purification: Global leader in coconut shell-based activated carbon; 45% of capacity is located in Thailand and Indonesia. Hand Protection: Manufacturing operations in Thailand leverage the world’s largest natural rubber source. Agriculture & Tea: Holds a leading supplier position in Sri Lanka’s tea export and plantation industries. • Strategic Liquidity Capex: Planned annual investment of ~Rs. 20 billion for capacity expansion. Rights Issue: Rs. 9 billion expected in FY26 to finance new investments and debt repayment. Liquidity: Supported by Rs. 55 billion in unrestricted cash and strong access to domestic banking capital.