📉 Odel PLC Sept Quarter Net Loss Widens 8.4% to Rs 704 Mn

Sri Lankan fashion retailer Odel PLC reported a group net loss of Rs 704.1 Mn for Q2 ended Sept 30, 2026, widening 8.4% YoY due to surging cost of sales and high finance costs. • Overall Financial Performance • Revenue: Up 13.5% YoY to Rs 1.85 Bn (from Rs 1.63 Bn). • Gross Profit: Up 4.3% YoY to Rs 875.0 Mn; gross margin squeezed to 47.4% (from 51.6%) as cost of sales jumped 23.4%. • Operating Loss: Widened 27.6% YoY to Rs 270.5 Mn on an 11.2% rise in admin costs (Rs 1.07 Bn). • Net Loss: Rs 704.1 Mn (Loss per share: Rs 1.31 vs Rs 1.21 YoY). • Sector & Operational Highlights • Fashion Retail: Remained core anchor, generating Rs 1.71 Bn (92.7% of external turnover). • Rental & Commission Income: Contributed Rs 134.4 Mn. • Debt Reprofiling & Balance Sheet • Finance costs edged down 1.3% YoY to Rs 434.7 Mn, absorbing over half of gross profit. • Active debt restructuring: Non-current borrowings surged 37.5% YoY to Rs 15.42 Bn, while short-term borrowings dropped 30.1% to Rs 6.10 Bn following Rs 4.21 Bn in long-term loan drawdowns. • Related party dues rose 27.3% YoY to Rs 7.02 Bn, showing ongoing parent funding. • Accumulated losses reached Rs 16.34 Bn, pushing net asset value to negative Rs 11.70 per share. • Key Projects & Governance • Ward Place Development (New Odel Mall): Rs 7.58 Bn completed under its Rs 9.81 Bn main contract. • Public Float: Stands at 1.19% (below regulatory minimums), with Softlogic Retail Holdings holding 98.79%.