Colombo, 17 August 2026 – Ambeon Capital PLC (CSE: AMBE), a prominent Sri Lankan investment holding and managing company, today announced its interim financial statements for the quarter ended 30th June 2026. The Group reported a net loss for the period, reflecting a challenging operational environment and significant movements in financial asset valuations, even as it made a substantial strategic acquisition during the quarter.
The consolidated financial results show a considerable shift from a profit in the corresponding period of the previous year to a net loss for the first quarter of the financial year 2026/27.
Key Financial Highlights (Group Performance)
- Revenue Growth: The Group recorded a 21% increase in revenue, reaching Rs 4,761,585 thousand for the quarter ended 30th June 2026, up from Rs 3,919,061 thousand in the same period last year.
- Gross Profit Decline: Despite revenue growth, gross profit saw a 17% decline, falling to Rs 741,371 thousand from Rs 891,005 thousand in Q1 2025. This indicates a higher direct cost proportional to revenue.
- Shift to Pre-Tax Loss: The Group registered a loss before tax from continuing operations of Rs (511,491) thousand, a significant reversal from the profit of Rs 803,005 thousand reported in the previous year’s first quarter.
- Net Loss for the Period: Consequently, the Group posted a net loss of Rs (553,321) thousand for the quarter, compared to a net profit of Rs 731,014 thousand in Q1 2025.
- Basic Loss Per Share: Basic earnings per share transitioned to a loss of Rs (0.39) for the quarter, down from an earnings per share of Rs 0.60 in the prior year.
Factors Influencing Performance
Several factors contributed to the downturn in profitability. Direct costs surged by 33% to Rs 4,020,213 thousand. Selling and distribution expenses more than doubled, increasing by 131% to Rs 152,067 thousand. Finance costs also climbed significantly by 51% to Rs 409,935 thousand.
A notable impact came from the “Change in Fair Value of Financial Assets measured at fair value through Profit or Loss,” which swung from a positive gain of Rs 681,203 thousand in Q1 2025 to a loss of Rs (238,179) thousand in Q1 2026, representing a substantial negative movement affecting the bottom line.
Segmental Performance Overview
An analysis of business segments reveals varied performances:
- IT and Related Services: This segment, a significant revenue contributor, saw revenue decrease to Rs 3,059,950 thousand from Rs 3,344,821 thousand. It also reported a larger loss before income tax of Rs (287,853) thousand, compared to Rs (150,343) thousand in Q1 2025.
- Investment Property: This segment reported revenue of Rs 1,377,435 thousand (no comparative revenue provided for Q1 2025) but incurred a loss before income tax of Rs (372,418) thousand, a substantial reversal from a profit of Rs 619,962 thousand in Q1 2025.
- Financial Services: This segment showed resilience, with its profit before income tax increasing significantly to Rs 243,647 thousand from Rs 52,929 thousand in the corresponding period, despite a drop in revenue to Rs 149,931 thousand.
- Footwear Manufacturing: This segment did not record revenue in Q1 2026 (Rs 154,085 thousand in Q1 2025) and reported a loss before income tax of Rs (13,971) thousand.
Strategic Acquisition of Harischandra Mills PLC
Despite the challenging quarter, Ambeon Capital PLC made a significant strategic move through its subsidiary, Ambeon Essentials (Private) Limited. On 14th May 2026, the company acquired a 51.11% stake in Harischandra Mills PLC for a total consideration of Rs 3,335,801,200. This acquisition introduces a new dimension to Ambeon Capital’s diverse portfolio, bringing in a well-established brand in the consumer goods sector and is expected to contribute to future growth, albeit resulting in a goodwill of Rs 2,329,811 thousand arising on acquisition.
Financial Position
As at 30th June 2026, the Group’s total assets stood at Rs 39,353,457 thousand, slightly down from Rs 40,119,365 thousand as at 31st March 2026. Non-current assets witnessed a substantial increase to Rs 7,842,495 thousand from Rs 4,247,001 thousand, largely driven by investments in Property, Plant & Equipment and Intangible Assets, likely reflecting the Harischandra Mills PLC acquisition.
Total Equity attributable to equity holders of the parent decreased to Rs 8,257,159 thousand from Rs 8,655,676 thousand at the end of the previous financial year.
The interim figures are provisional and subject to audit.
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