Tokyo Cement Q1 FY26/27 Revenue Up 26% to Rs. 15.8 Bn Amid Market Recovery 📈

• Financial Performance: Tokyo Cement Group posted a turnover of Rs. 15,836 Mn for Q1 FY26/27 (up 26.2% YoY from Rs. 12,544 Mn), driven by volume growth from new development projects. Net profit (PAT) contracted 4.9% YoY to Rs. 635 Mn (down from Rs. 668 Mn) as profitability faced pressure from elevated raw material, insurance, and freight costs. • Macroeconomic Environment: Middle East tensions drove up energy, shipping, and import costs, contributing to an average ~7% LKR depreciation against the USD. The Central Bank raised the Overnight Policy Rate by 100 bps to 8.75% in May to manage inflation, slowing credit growth and prompting cautious investment in real estate and construction. • Sector Growth & Drivers: Demand for cement and concrete recovered in the latter half of the quarter via regional infrastructure projects, including roads and highways. Further growth in the construction sector is expected to be anchored by government capital outlays, ADB-backed post-cyclone rehabilitation, Indian-funded affordable housing (1,550+ families), and Colombo Port City developments. • Corporate Outlook: Tokyo Cement maintains a conservative short- to medium-term stance, utilizing its enhanced 4 Mn MT production capacity to support Sri Lanka's construction-led economic recovery.