Colombo Dockyard PLC (CSE: DOCK) has achieved a notable financial recovery for the quarter ending 30 June 2026, marking its return to profitability after a prolonged period of losses.
This positive outcome coincides with the company’s upcoming 52nd anniversary on 1 August 2026, representing a key milestone in its ongoing transformation and strategic realignment following its partnership with Mazagon Dock Shipbuilders Limited.
For the quarter, the Group reported a profit after tax of Rs. 80.2 million, a dramatic shift from the Rs. 813.4 million loss recorded in the same quarter of 2025. Profit attributable to shareholders was Rs. 86.3 million, and earnings per share rose to Rs. 0.22, recovering from a restated loss per share of Rs. 3.51 in the previous year.
Although the Group’s revenue fell by 6.8% to Rs. 5.84 billion for the quarter, enhanced cost efficiencies played a vital role in significantly boosting profitability. The cost of sales decreased by 21.8% to Rs. 4.63 billion, leading to a gross profit increase of 250.7% to Rs. 1.21 billion. Consequently, the Group’s gross profit margin improved to around 20.7%, compared to 5.5% during the same period last year.
Net finance expenses also saw a substantial reduction of 63.8%, dropping to Rs. 188.2 million from Rs. 520 million in the comparable quarter, reflecting the company’s improved financial stability and reduced debt obligations.
The ship repair segment was the primary driver of this enhanced performance, with revenue rising by 48.4% to Rs. 3.95 billion, up from Rs. 2.66 billion in the previous year’s quarter. Gross profit from this segment more than doubled to Rs. 1.46 billion, compared to Rs. 727 million previously.
Meanwhile, the shipbuilding segment continued to face difficult market conditions, although its gross profit loss narrowed significantly to Rs. 378.8 million from Rs. 899.6 million in the same period last year. This improvement helped mitigate the adverse effects of the decline in shipbuilding revenue.
Thimira S. Godakumbura, Managing Director and CEO of Colombo Dockyard PLC, remarked, “Achieving quarterly profitability as we celebrate 52 years of service is a significant milestone for us. This result underscores the dedication of our team, the enhancement of our ship repair operations, effective cost management, and a reduced financing load. It also reflects the early progress from our strategic partnership with Mazagon Dock Shipbuilders Limited.”
He added, “While we acknowledge that there is still work to be done, particularly in bolstering our shipbuilding capabilities and enhancing working capital efficiency, this performance boosts our confidence in the company’s direction. Our focus will remain on building a more resilient, competitive, and financially sustainable Colombo Dockyard.”
During this period, the company also strengthened its balance sheet, with total Group equity reaching Rs. 15.59 billion as of 30 June 2026, a significant increase from Rs. 4.07 billion on 30 June 2025. Stated capital rose to Rs. 13.65 billion, and total assets amounted to Rs. 42.58 billion, with cash and cash equivalents totaling Rs. 8.48 billion.
Mazagon Dock Shipbuilders Limited currently holds a 51% stake in Colombo Dockyard. Additionally, the company has synchronized its financial year with that of its parent company, with the current reporting year beginning on 1 April 2026. Therefore, the results for the quarter ending 30 June represent the first quarter under this new reporting schedule.
As Colombo Dockyard approaches its 52nd anniversary, it remains committed to prioritizing operational excellence, improving project execution, maintaining financial discipline, and enhancing collaboration with Mazagon Dock Shipbuilders Limited. These initiatives are anticipated to strengthen Colombo Dockyard’s long-term competitiveness and bolster its role in Sri Lanka’s maritime and heavy engineering sectors.
Image Caption: Colombo Dockyard PLC Managing Director/CEO Thimira S. Godakumbura
