Colombo, 13 August 2026 – ABANS ELECTRICALS PLC (CSE: ABAN) today announced its interim financial statements for the first quarter ended 30th June 2026, revealing a mixed performance characterized by robust revenue growth but a notable decline in net profit compared to the corresponding period last year. The results, filed with the Colombo Stock Exchange (CSE), provide a snapshot of the company’s operational and financial health during the initial quarter of the new fiscal year.
Financial Highlights: Revenue Up, Profits Down
For the three months ended 30th June 2026, ABANS ELECTRICALS PLC recorded a turnover of Rs. 2,092.95 million, marking a healthy 5.6% increase from Rs. 1,981.66 million reported in Q1 FY2025/26. This growth in sales translated into a marginal 1.8% increase in gross profit, reaching Rs. 525.02 million from Rs. 515.30 million in the previous year.
However, the positive top-line performance did not flow through to the bottom line, primarily due to increased operational expenditures. The company’s operating profit experienced a significant decline of 17.0%, falling to Rs. 224.61 million from Rs. 270.92 million. Consequently, Profit Before Tax (PBT) decreased by 11.0% to Rs. 245.24 million, and Net Profit for the period saw an 18.4% reduction, settling at Rs. 170.46 million compared to Rs. 208.90 million in Q1 FY2025/26. Earnings Per Share (EPS) also mirrored this trend, dropping from Rs. 40.81 to Rs. 33.35.
Key Drivers Behind Profitability Shift
The interim financial statements highlight several factors contributing to the dip in profitability:
- Marketing and Distribution Expenses: Rose by 16.0% to Rs. 103.70 million from Rs. 89.38 million.
- Administrative Expenses: Saw a substantial increase of 29.8%, climbing to Rs. 213.32 million from Rs. 164.30 million.
- Tax Expense: Increased by 12.0% to Rs. 74.78 million, further impacting net profit.
Despite these challenges, the company demonstrated improved finance income, surging by 145.0% to Rs. 24.95 million, and a reduction in finance expenses by 20.7% to Rs. 4.32 million, partially mitigating the impact of rising operating costs.
Financial Position and Cash Flow
As of 30th June 2026, ABANS ELECTRICALS PLC’s total assets stood at Rs. 6,447.07 million, up from Rs. 5,965.66 million at 31st March 2026. The Net Assets per Share improved to Rs. 689.26 from Rs. 655.91 at the end of the previous fiscal year, indicating a stronger underlying asset base per share.
The cash flow statement revealed a notable shift in operating activities. The company reported a net cash outflow of Rs. 369.50 million from operating activities, a significant change from the Rs. 234.72 million net cash inflow in the prior year’s comparable quarter. This was largely influenced by an increase in inventories, receivables, and related company transactions.
Investing activities included a substantial intercompany short-term loan granted amounting to Rs. 1,000 million, balanced by a significant investment of Rs. 914.04 million in fixed/short-term deposits. Overall, cash and cash equivalents at the end of the period stood at Rs. 95.91 million, a considerable decrease from Rs. 596.52 million a year ago.
Segmental Performance Overview
ABANS ELECTRICALS PLC operates across Manufacturing, Services, and Solar Installation segments. The breakdown for the three months ended 30th June 2026 (Rs. Millions) shows:
- Manufacturing: Revenue increased to Rs. 916.1 million from Rs. 688.16 million in the prior year.
- Services: Demonstrated strong growth, with revenue rising to Rs. 896.02 million from Rs. 635.0 million.
- Solar Installation: Experienced a significant decline in revenue, dropping to Rs. 107.6 million from Rs. 470.72 million. This segment’s performance warrants closer examination in future reports.
The company maintains its accounting policies and practices consistent with its Annual Report for the year ended 31st March 2026. The figures are provisional and subject to audit.
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