First Capital Holdings PLC, a subsidiary of the Janashakthi Group (JXG) and a leader in Sri Lanka’s capital markets, faced a difficult first quarter for the financial year 2026/27 due to increasing global economic challenges, geopolitical strife, and notable fluctuations in interest rates. Although these market conditions exerted pressure on fixed income trading, the Group’s varied business segments continued to make positive contributions, particularly in Corporate Finance Advisory, Corporate Dealing Securities, Wealth Management, and Stock Broking.
For the quarter ending on June 30, 2026, First Capital Holdings PLC reported a Loss after Tax of Rs. 726 million, a significant decline from the Profit after Tax of Rs. 2.15 billion recorded in the same quarter the previous year.
The Group experienced a Net Trading Loss before Operating Expenses of Rs. 565 million during the first quarter of 2026/27, contrasting sharply with a Net Trading Income before Operating Expenses of Rs. 3.43 billion in the comparable quarter of the previous year.
The financial results for this quarter were influenced by increased global economic uncertainties, primarily stemming from geopolitical tensions related to the Middle Eastern conflict. To combat rising inflation, the Central Bank of Sri Lanka raised its policy rate by 100 basis points during the quarter, which significantly curtailed trading opportunities and led to negative mark-to-market movements in trading portfolios.
The Primary Dealer division recorded a Loss after Tax of Rs. 741 million for the quarter ending June 30, 2026, in stark contrast to a Profit after Tax of Rs. 1.55 billion in the first quarter of 2025/26. This performance included net interest income of Rs. 351 million along with a trading loss of Rs. 1.80 billion on government securities, compared to net interest income of Rs. 503 million and trading gains of Rs. 2.06 billion for the same period last year.
Meanwhile, the Corporate Finance Advisory and Corporate Dealing Securities divisions reported a Profit after Tax of Rs. 22 million for the quarter ending June 30, 2026, down from Rs. 587 million in the first quarter of 2025/26.
The Wealth Management division posted a Profit after Tax of Rs. 6 million for the quarter, a decrease from Rs. 27 million in the previous year’s corresponding quarter. The division maintained a robust asset base, with Assets Under Management amounting to Rs. 93.3 billion as of June 30, 2026, compared to Rs. 96.2 billion as of March 31, 2026.
The Stock Broking division achieved a Profit after Tax of Rs. 24 million for the quarter, down from Rs. 32 million in the first quarter of 2025/26.
Rajendra Theagarajah, Chairman of First Capital Holdings PLC, commented on the results, stating, “First Capital has established a solid foundation across various sectors of the capital markets, allowing us to navigate different market cycles with diligence and insight. Despite the challenging environment for fixed income markets, the continued performance of our advisory, dealing, wealth management, and securities businesses highlights the strength of our overall platform. We are committed to enhancing our market position, expanding our capabilities, and delivering sustainable value to our clients and stakeholders.”
Looking ahead, Dilshan Wirasekara, Managing Director and CEO of First Capital Holdings PLC, remarked, “This quarter underscored the necessity of maintaining a balanced and diversified business model in a changing market landscape. While interest rate fluctuations impacted fixed income trading, our other core businesses continued to provide positive results. We remain dedicated to improving execution, expanding our capabilities, and seeking opportunities throughout the capital markets as conditions progress. Our established platforms and client relationships lay a strong foundation for future growth.”
In line with its commitment to responsible business practices, First Capital Holdings PLC and First Capital Treasuries PLC successfully attained independent verification of their Greenhouse Gas (GHG) emissions for 2025/26 through the Sri Lanka Climate Fund, adhering to ISO 14064 standards.
With its established expertise, skilled professionals, and strong market presence, First Capital is focused on fostering sustainable growth, enhancing client partnerships, and contributing to the advancement of Sri Lanka’s capital markets.
