First Capital navigates market volatility in first quarter of financial year 2026/27

First Capital Holdings PLC, a subsidiary of JXG (Janashakthi Group) and a pioneering force in Sri Lanka’s capital markets landscape, navigated a challenging first quarter of financial year 2026/27 amid heightened global economic uncertainty, geopolitical tensions and significant movements in interest rates. While market conditions placed pressure on fixed income trading activities, the Group’s diversified business portfolio continued to deliver positive contributions across its Corporate Finance Advisory, Corporate Dealing Securities, Wealth Management and Stock Brokering businesses.

First Capital Holdings PLC (the Group) recorded a Loss after Tax of Rs. 726Mn for the quarter ended 30 June 2026, compared to a Profit after Tax of Rs. 2.15Bn in the corresponding period of the previous year.

The Group’s Net Trading Loss before Operating Expenses for the first quarter of 2026/27 was Rs. 565Mn, compared to Net Trading Income before Operating Expenses of Rs. 3.43Bn in the corresponding quarter of the previous year. 

During the quarter under review, the Group’s financial performance was impacted by heightened global economic uncertainties, primarily driven by geopolitical tensions arising from the conflict in the Middle East. The Central Bank of Sri Lanka increased its policy rate by 100 basis points during the quarter to address rising inflationary pressures. Against this backdrop, trading opportunities were substantially restrained, while adverse mark-to-market movements were experienced across trading portfolios.

The Primary Dealer division reported a Loss after Tax of Rs. 741Mn for the quarter ended 30 June 2026, compared to a Profit after Tax of Rs. 1.55Bn in the first quarter of 2025/26. The results included net interest income of Rs. 351Mn and a trading loss on government securities amounting to Rs. 1.80Bn, compared to net interest income of Rs. 503Mn and trading gains on government securities of Rs. 2.06Bn in the corresponding quarter of the previous year.

The Corporate Finance Advisory and Corporate Dealing Securities divisions reported a Profit after Tax of Rs. 22Mn for the quarter ended 30 June 2026, compared to Rs. 587Mn in the first quarter of 2025/26.

The Wealth Management division reported a Profit after Tax of Rs. 6Mn for the quarter ended 30 June 2026, compared to Rs. 27Mn in the corresponding quarter of the previous year. The division continued to maintain a strong asset base, with Assets Under Management standing at Rs. 93.3Bn as at 30 June 2026, compared to Rs. 96.2Bn as at 31 March 2026.

The Stock Brokering division recorded a Profit after Tax of Rs. 24Mn for the quarter ended 30 June 2026, compared to Rs. 32Mn in the first quarter of 2025/26.

Commenting on the performance, Rajendra Theagarajah, Chairman of First Capital Holdings PLC, said, “First Capital has built a strong foundation across multiple areas of the capital markets, enabling us to navigate different market cycles with discipline and perspective. While the quarter presented a challenging environment for fixed income markets, the continued performance of our advisory, dealing, wealth management and securities businesses reflect the strength of our broader platform. We remain focused on strengthening our market position, deepening our capabilities and creating sustainable value for our clients and stakeholders.”

Commenting on the outlook, Dilshan Wirasekara, Managing Director/CEO of First Capital Holdings PLC, said, “The quarter reinforced the importance of maintaining a balanced and diversified business model in an evolving market environment. While movements in interest rates affected fixed income trading activities, our other core businesses continued to deliver positive contributions. We remain focused on strengthening execution, expanding our capabilities and identifying opportunities across the capital markets as conditions evolve. Our established platforms and client relationships provide a strong foundation as we move forward.”

Further strengthening its commitment to responsible business practices, First Capital Holdings PLC and First Capital Treasuries PLC successfully achieved independent Greenhouse Gas (GHG) emissions verification for 2025/26 through the Sri Lanka Climate Fund, in accordance with ISO 14064 standards.

Backed by its established capabilities, experienced professionals and strong market position, First Capital continues to focus on driving sustainable growth, strengthening client partnerships and contributing to the continued advancement of Sri Lanka’s capital markets.

About First Capital Holdings PLC

First Capital Holdings PLC is a listed full-service investment institution in Sri Lanka, operating as a primary dealer, corporate finance advisor, wealth manager and stockbroker. With strong emphasis on upholding stability, fostering a competitive advantage and providing an exceptional customer experience, together with the support of JXG (Janashakthi Group), First Capital focuses on staying true to its ‘Performance First’ ethos. With over four decades of expertise in delivering capital market solutions, the credit ratings of First Capital Holdings PLC and its subsidiary First Capital Treasuries PLC have been reaffirmed by Lanka Rating Agency (LRA) at A+ Entity Rating with a Stable Outlook. First Capital Holdings PLC has been recognised as the Leading Investment Banking Firm in Sri Lanka – 2026 at the World Economic Magazine Awards, further reinforcing its position as a trusted leader in the investment banking sector. In 2025, the company became the first investment institution in Sri Lanka to achieve Superbrands status, recognising its strong brand presence and market leadership.