Prime Lands Residencies PLC (CSE: PLR) has reported robust financial results for the quarter ending December 31, 2025, meeting shareholder expectations. Over the past three months, the company’s share price has surged by over 40%, reflecting increased investor confidence. This optimism is fueled by the substantial scale of project launches in the past two years, which include The Border Colombo’s three towers (484 units), J’adore Negombo (333 units), The Golf Colombo 08 (64 units), Mon Vie Colombo 05 (349 units), Prime Colombo 9 (559 units), and The Seasons Colombo 08 (44 units).
For the quarter, revenue rose by 43% year-on-year to Rs. 2.80 billion, compared to the same period last year. This growth was largely driven by accelerated construction progress in Tower C of The Border Colombo project, along with initial revenue recognition from The Seasons Colombo 08. Revenue from other newly launched projects will be recognized in accordance with construction milestones, in line with the company’s prudent revenue recognition policy, which signals future earnings growth potential.
Gross profit more than doubled, growing by 111% year-on-year to Rs. 1.05 billion. This notable improvement is attributed to enhanced project margins and increased operational efficiency, supported by the involvement of renowned construction firms in the country that deliver significant economies of scale. Strategic initiatives in tender management, improved procurement planning, and faster construction timelines also contributed to margin expansion. Notably, the Tower C topping-off milestone was reached four months ahead of schedule.
Operating profit saw a substantial increase of 147% year-on-year to Rs. 730.9 million, despite Prime Group’s Rs. 200 million contribution to the Rebuilding Sri Lanka Fund, of which Prime Lands Residencies PLC contributed Rs. 100 million.
Profit after tax for the quarter rose by 144% year-on-year to Rs. 562.3 million, reflecting strong earnings momentum and setting the stage for potential high-growth performance as recently launched projects start revenue recognition over the next 36 months.
For the nine-month period ending December 31, 2025, Prime Lands Residencies PLC sustained solid year-to-date performance, delivering an exceptional third quarter. Revenue for this period increased by 24% year-on-year to Rs. 7.95 billion, while gross profit rose by 63%, driven by the same operational and project execution factors mentioned earlier. Profit after tax for the nine-month period increased significantly by 68% year-on-year to Rs. 1.50 billion.
Earnings per share (EPS) for the quarter were Rs. 0.60, with trailing twelve-month (TTM) EPS at Rs. 1.96. The upward trend in the share price has elevated the company’s price-to-earnings (PE) ratio well above both the overall market and sector averages, indicating strong investor expectations for future earnings growth.
Leadership Commentary
Group Chairman Premalal Brahmanage commented:
“The Company’s strong performance is a clear reflection of the trust placed in the Prime brand by our customers over the past 30 years, beginning with Prime Lands (Pvt) Ltd, the parent company of Prime Lands Residencies PLC. We remain focused on delivering high-quality developments while maintaining financial discipline and operational efficiency.”
Photo Caption –
Premalal Brahmanage – Chairman Prime Group
Sandamini Perera – Co-Chairperson Prime Group
