JAT Holdings Records 34% Revenue Growth in Q1 FY26/27, Led by International Operations

 JAT Holdings PLC recorded Group revenue of LKR 3.04 billion for the quarter ended 30 June 2026, representing a 34% year-on-year increase, supported by growth across both its Sri Lankan and international operations. Local revenue increased by 8% to LKR 1.83 billion, while revenue from foreign operations increased by 110% to LKR 1.21 billion.

Gross profit increased by 29% to LKR 1.07 billion, while gross profit margin moderated from 37% to 35%, reflecting higher input costs associated with increases in global commodity prices. Operating profit declined by 25% to LKR 174 million, primarily reflecting the consolidation of Mirotone’s expenses, alongside higher administrative, selling and distribution expenses associated with Volt software depreciation, increased transportation costs following fuel price increases and additional warehouse capacity established to support wider market reach. Foreign exchange gains partly offset finance costs, with profit before tax remaining broadly unchanged at LKR 167 million and profit after tax at LKR 150 million.

Commenting on the results, CEO Nishal Ferdinando said, "The quarter reflects a meaningful increase in the contribution from our international operations, which grew by 110% year on year, supported by strong growth across key regional markets including Bangladesh and the Maldives, alongside continued growth in Sri Lanka. While input-cost pressures and investments in building capacity affected operating margins during the period, we maintained profit after tax broadly in line with the previous year. Our focus remains on converting the investments we have made across markets and business verticals into sustained earnings growth over the medium to long term."

JAT continued to strengthen its leadership across its core business segments. The wood coatings business maintained its 57% market share while achieving 8% quarter-on-quarter revenue growth despite supplier price increases that reduced net gross profit margin by 4%. The paint, chemicals and related products segment recorded 85% quarter-on-quarter revenue growth, with its share of the Brilliant White segment increasing to 11%. Brushes and Rollers delivered 78% quarter-on-quarter revenue growth, expanded its outlet reach by 12% to more than 3,000 outlets, and further strengthened its market-leading position through a 3% increase in market share.

Supporting this performance is JAT’s growing manufacturing and R&D base across Sri Lanka and Bangladesh. Investments including the Acrylic Binder Plant in Sri Lanka and the Alkyd Resin Plant in Bangladesh continue to deepen backward vertical integration, giving the Group greater control over selected critical inputs while supporting cost efficiency, supply continuity and greater resilience across its coatings portfolio.

Although the furnishing business recorded a reported 7% decline in revenue, the total revenue value including LC components paid directly by customers increased by 64% quarter-on-quarter.  The business secured key furnishing contracts for OPPEIN doors, while confirmed projects in the pipeline totalled approximately LKR 763 million. It also launched HM Circle, a first-of-its-kind loyalty programme for Herman Miller customers.

The EV charging business, Volt Charge, continued to strengthen its position as Sri Lanka’s largest EV charger manufacturer and network operator, with more than 3,500 chargers manufactured to date. Despite a quarter-on-quarter decline in revenue, the business continued to build its future revenue pipeline, securing a confirmed order for 2,000 EV chargers from John Keells CG Auto, the authorised distributor of BYD vehicles in Sri Lanka, with more than 85% expected to be billed during Q2. Volt Charge also secured installation orders across the remaining 60 Keells outlets under an investment model. Development of its mobile application continued during the quarter, with functionality being built to provide visibility of third-party charging stations.

International operations continued to demonstrate encouraging momentum. In Bangladesh, revenue increased by 33% in BDT terms, with the industrial segment growing 31%, the retail segment growing 40%, Coat-Ex sales increasing by 61%, and ACL gross profit improving by 1%. The Maldives also recorded strong growth during the quarter, with revenue increasing by 624% quarter-on-quarter.

Mirotone New Zealand recorded 10% quarter-on-quarter revenue growth in NZD terms.  The business reported a loss of NZD 59,000 during the quarter amid challenging market conditions and higher raw material and fuel costs. Revenue improved in June compared with April and May, providing early indications of stabilising business momentum. During the quarter, Mirotone Australia was established as a wholly owned subsidiary of JAT Holdings, with its facility and in-house colour matching capability completed. The business also secured Mirotone's former second-largest customer, Total 2 Pack, while local R&D and production capabilities supported the alignment of product quality with Australian market requirements.

Managing Director Aelian Gunawardene added, "We continue to build greater depth into the Group through manufacturing, backward vertical integration, technology and international expansion. These investments increase our operating cost base in the near term, but they also strengthen our control over critical inputs, improve our ability to respond to market conditions and create new revenue opportunities across multiple markets. This is central to building JAT as an increasingly resilient Sri Lankan multinational."

With a Fitch National Long-Term Rating of AA (lka), an expanding presence across South Asia and Australasia, and continued investments in manufacturing, innovation and emerging growth platforms, JAT Holdings continues to build a broader operating base and an increasingly diversified international business, supporting its long-term focus on sustainable growth and value creation.