JAT Holdings PLC reported a group revenue of LKR 3.04 billion for the quarter ending June 30, 2026, marking a 34% increase compared to the same period the previous year. This growth was driven by strong performance in both domestic and international markets. Revenue from local operations rose by 8% to LKR 1.83 billion, while international revenue surged by 110% to LKR 1.21 billion.
The company’s gross profit also saw a substantial rise of 29%, reaching LKR 1.07 billion, although the gross profit margin decreased from 37% to 35% due to rising global commodity prices. Operating profit fell by 25% to LKR 174 million, largely due to the consolidation of Mirotone’s expenses and increased administrative and distribution costs linked to software depreciation, higher transportation expenses stemming from fuel price hikes, and additional warehouse capacity to enhance market reach. Despite these challenges, profit before tax remained relatively stable at LKR 167 million, with profit after tax holding steady at LKR 150 million.
Nishal Ferdinando, the CEO, commented on the results, stating, “This quarter shows a significant contribution from our international operations, which grew by 110% year-on-year, driven by robust expansion in key markets like Bangladesh and the Maldives, along with ongoing growth in Sri Lanka. Although we faced pressures from input costs and investments aimed at capacity building, we managed to keep our profit after tax consistent with last year. Our priority is to transform the investments made across various markets and business sectors into sustained earnings growth in the medium to long term.”
JAT Holdings has continued to fortify its leadership in core business areas. The wood coatings segment retained a commanding 57% market share and achieved an 8% increase in quarterly revenue, despite supplier price hikes that affected gross profit margins. The paint and chemicals sector experienced an impressive 85% rise in revenue quarter-on-quarter, with its share in the Brilliant White segment climbing to 11%. The Brushes and Rollers category also reported a 78% growth in revenue, expanding its distribution network to over 3,000 outlets and enhancing its market share by 3%.
This strong performance is underpinned by JAT’s expanding manufacturing and research and development capabilities in Sri Lanka and Bangladesh. Investments, such as the Acrylic Binder Plant in Sri Lanka and the Alkyd Resin Plant in Bangladesh, continue to enhance vertical integration, allowing the company better control over essential inputs while boosting cost efficiency and supply stability.
While the furnishing segment saw a reported revenue decline of 7%, the overall revenue, including LC components directly paid by customers, increased by 64% from the previous quarter. The division secured significant furnishing contracts for OPPEIN doors and has projects worth approximately LKR 763 million currently in the pipeline. Additionally, it launched HM Circle, a unique loyalty program for Herman Miller customers.
In the electric vehicle charging sector, Volt Charge reinforced its status as Sri Lanka’s leading EV charger manufacturer and network operator, with over 3,500 chargers produced to date. Despite a quarterly revenue drop, the business continues to develop its future revenue streams, securing an order for 2,000 EV chargers from John Keells CG Auto, the authorized distributor for BYD vehicles, with more than 85% of this order expected to be fulfilled in Q2. Volt Charge is also working on installation contracts for the remaining 60 Keells outlets as part of an investment strategy, and development of a mobile application is ongoing to enhance visibility of third-party charging stations.
JAT’s international operations have shown positive growth, with revenue in Bangladesh rising by 33% in BDT terms. The industrial segment grew by 31%, while the retail segment saw a 40% increase. Coat-Ex sales surged by 61%, and ACL’s gross profit improved by 1%. The Maldives experienced exceptional growth as well, with revenue soaring by 624% quarter-on-quarter.
Mirotone New Zealand reported a 10% increase in revenue in NZD terms, although it faced a loss of NZD 59,000 due to challenging market conditions and rising raw material and fuel costs. However, June’s performance showed improvement compared to April and May, signaling potential stabilization. Mirotone Australia was established as a wholly owned subsidiary of JAT Holdings during the quarter, completing its facility and in-house color matching capabilities, and successfully securing Mirotone’s former second-largest customer, Total 2 Pack.
Aelian Gunawardene, the Managing Director, noted, “We are focused on enhancing the Group’s depth through manufacturing, vertical integration, technology, and international expansion. While these investments may increase our operating costs in the short term, they also enhance our control over critical inputs, improve our market responsiveness, and open new revenue opportunities across various markets. This vision is crucial for solidifying JAT as a resilient Sri Lankan multinational company.”
With a Fitch National Long-Term Rating of AA (lka), an expanding footprint in South Asia and Australasia, and ongoing investments in manufacturing and innovation, JAT Holdings is working to broaden its operational base and diversify its international business, thereby reinforcing its commitment to sustainable growth and value creation.
