JAT Holdings Records Highest-Ever Revenue in FY25/26 and a PBT increase despite external shocks

JAT Holdings PLC recorded its highest-ever annual revenue in FY25/26, with performance reflecting the continued strength of its core coatings business, disciplined manufacturing strategy, and investments in emerging growth platforms despite a challenging external environment.

For the year ended 31 March 2026, Group revenue increased by 9% year-on-year to Rs. 12.6 billion, compared to Rs. 11.6 billion in the previous year. Local revenue grew by 12% to Rs. 9.7 billion, additionally supported by the EV charger business and the decorative paints segment, while foreign operations recorded Rs. 2.9 billion.

Gross profit rose by 21% to Rs. 4.8 billion, with gross profit margin improving from 34% to 38%. This improvement was a key indicator of the quality of the Group’s growth during the year, supported by a stronger product mix, improved manufacturing control, backward vertical integration, and operational efficiencies across JAT’s facilities in Sri Lanka and Bangladesh.

Profit before tax increased by 5% to Rs. 1.68 billion, while finance costs reduced by 17% to Rs. 292 million due to effective debt management and lower interest rates. Profit after tax stood at Rs. 1.52 billion. Profit after tax was impacted by the reduction of the previous year’s deferred tax asset, which affected year-on-year comparability. Underlying performance remained resilient, with revenue, gross profit, gross margin and profit before tax all improving during the year.

Selling and distribution expenses, as well as administrative expenses, increased during the year, primarily due to the consolidation of Mirotone following its acquisition in October 2025, reflecting the Group’s expanded operating footprint.

Despite the temporary impact of Cyclone Ditwah in Q3, JAT achieved its highest-ever wood coatings sales, with the segment recording 9% growth and a 5% improvement in GP margin. Notably, 83% of wood coatings sales came from the loyalty base, a 16% increase from the previous year’s sales contribution while the loyalty base itself has grown by 10%. The Company also completed the second phase of its binder plant expansion, increasing capacity by 76%. This expansion further strengthened JAT’s backward vertical integration strategy, improving control over critical inputs, supporting margin resilience, and reducing exposure to supply chain and import-related volatility.

The emulsion category recorded 15% sales growth during the year, while product development efforts continued with the further enhancement of Hydro+ waterproofing paint for exterior walls and the development of three new water-based binders for waterproofing paints, interior wood coatings and wall coatings. Brushes continued steady growth, with sales up 12% and GP margins improving by 7%.

JAT’s EV business also strengthened its growth profile during the year, achieving the status of the largest EV charging network in Sri Lanka, with over 2,000 slow chargers sold, more than 80 fast chargers installed, and over 15,000 registered users. A confirmed order of 2,000 chargers from BYD in March is yet to be recognised within the financial year. From December 2025 onwards, revenue from the business was recorded under Volt Industrial Company (Pvt) Ltd, a fully owned subsidiary of JAT Holdings. The business is also laying the foundation for its own charger network with recurring revenue potential, with 17 chargers already installed.

Internationally, the acquisition of Mirotone New Zealand marked a key strategic milestone for the Group. In Q4, Mirotone recorded NZD 1.6 million in sales revenue, representing 10% growth over the corresponding quarter, along with a 15% increase in gross profit and 18% increase in PAT. With synergies expected through centralised procurement, R&D collaboration and operational integration, Mirotone strengthens JAT’s position in the industrial wood coatings segment while extending the Group’s presence into a mature Australasian market.

Commenting on the performance, CEO Nishal Ferdinando said, “FY25/26 demonstrates the value of the strategic choices we have made over the past several years. We have continued to strengthen the core coatings business, improve manufacturing control, manage finance costs more effectively, and invest in platforms that expand JAT’s long-term growth potential. The improvement in gross margin is particularly important because it reflects not only revenue growth, but better-quality growth. As we move forward, our focus is on scaling these platforms with discipline, while ensuring that JAT remains competitive and positioned for sustained value creation.”

Managing Director Aelian Gunawardene added “JAT’s growth has always been built on the belief that we must develop capability ahead of opportunity. FY25/26 was an important year in that journey, as we strengthened our manufacturing base, expanded our international presence, and continued to invest in the businesses and systems that will give JAT greater depth, agility and relevance across markets. What we are building is not only a stronger company for today, but a Sri Lankan multinational grounded in technical superiority, customer service and innovation, with the reach and resilience to compete across markets over the long term.”

With a Fitch National Long-Term Rating of AA (lka), a growing international footprint, and continued recognition at institutional platforms such as CMA, ACCA and CPM, JAT Holdings remains well-positioned for long-term growth. The Group’s corporate and brand standing was further reflected through continued visibility across leading LMD rankings and listings. As it enters FY26/27, JAT does so with recognised market positions, improving international momentum, and a portfolio of core and emerging businesses aligned to its next phase of regional and global expansion.