JAT Holdings PLC sustains growth momentum with a 14% revenue increase and 16% PBT increase

JAT Holdings PLC, Sri Lanka’s leader in wood coatings and a diversified conglomerate in the manufacturing sector, continued its strong performance into the second quarter of FY 2025/26, recording a 14% year on year (YoY) growth in revenue to Rs. 5.15 billion and a 29% increase in gross profit to Rs. 1.8 billion, supported by strategic cost control, product mix optimization, and efficiencies from its backward vertical integration initiatives.

Gross profit margins strengthened from 31% to 35%, reflecting improved manufacturing efficiencies and disciplined pricing strategies. Operating profit grew 14% to Rs. 569 million, while profit before tax (PBT) increased 16% YoY to Rs. 474 million, underscoring the Group’s operational resilience and strategic focus amid evolving market conditions.

Export revenue declined 11% YoY, primarily due to a 9% drop in Bangladesh sales, which was largely driven by currency conversion effects. The sales in BDT terms grew 3% YoY reflecting gradually improving economic stability in Bangladesh. Local revenue growth remained robust at 23%, driven by strong performance across the Wood Coatings, Brushes & Rollers, and Projects categories.

The Group’s EV charger manufacturing venture delivered Rs. 378 million, which is 7% of the total revenue, up significantly from Rs. 35 million in the same period last year, further reinforcing JAT’s innovation-driven diversification strategy.

Profit after tax (PAT) for the period declined 22% YoY to Rs. 398 million, solely due to the differed tax asset recognized in FY 24/25 as against a liability in the current year. Despite the decline in PAT, JAT’s underlying profitability and growth trajectory remained strong, supported by healthy gross profit margins.

Commenting on the results, Nishal Ferdinando, CEO of JAT Holdings PLC, stated:

“Our Q2 performance reaffirms the strength of JAT’s business model driven by operational excellence, product innovation, and strong domestic market fundamentals. As we continue to expand our footprint and integrate sustainable solutions such as EV charging, we remain well-positioned for long-term value creation.”

Managing Director, Aelian Gunawardene, added:

“The second quarter demonstrates JAT’s strategic agility and prudent decision making. While global volatility continues to test markets, our focus on efficiency, market expansion, and innovation has ensured consistent progress and shareholder value. With JAT’s acquisition of Mirotone (NZ) Limited, New Zealand’s leading industrial wood coatings company and a renowned Australian brand with 90 years of heritage, we aim to strengthen our global footprint and reaffirm our commitment to innovation and excellence within the coatings industry.”

The Company also secured multiple accolades, including:

• Bronze Award – CNCI Achiever Awards 2025 (National Level – Extra-Large Category, Manufacturing Sector)
• Bronze – SLIM Digis 2.5 for Best Use of Digital in a Marketing Campaign (Real Estate/Building Materials/Hardware)
• Sayerlack recognised among Sri Lanka’s Most Valuable Brands by Echelon and Brand Finance

With a Fitch AA (lka) rating, continued product innovation, and regionally integrated operations across Sri Lanka and Bangladesh, JAT Holdings continues to demonstrate long term strategic strength, operational excellence, and confidence in the local and regional markets.