COLOMBO, Sri Lanka – 13 August 2026 – KELANI TYRES PLC (CSE: TYRE) has announced its interim financial statements for the three months ended June 30, 2026, revealing a significant financial turnaround for the Group. The company posted a consolidated profit for the period, a stark contrast to the loss recorded in the corresponding quarter of the previous year.
The unaudited results, released yesterday, highlight the crucial role of its Joint Venture (JV), CEAT Sri Lanka, in bolstering the Group’s performance during the first quarter of the financial year 2026/2027.
Key Financial Highlights (Group)
For the quarter ended June 30, 2026, KELANI TYRES PLC reported:
- Profit for the Period: A consolidated profit of LKR 158,868 thousand, marking a substantial improvement from the LKR (55,867) thousand loss reported in the same period last year.
- Profit Before Tax: The Group achieved a profit before tax of LKR 158,868 thousand, reversing a loss of LKR (53,467) thousand in Q1 2025.
- Earnings Per Share (EPS): Earnings per share saw a remarkable rebound to LKR 1.98, significantly up from a negative LKR 0.69 in the previous year’s first quarter.
- Net Finance Income: The Group’s net finance income improved to LKR 18,370 thousand from LKR 17,087 thousand in Q1 2025.
Joint Venture Performance Drives Growth
The exceptional performance of the Joint Venture, CEAT Sri Lanka, was a primary catalyst for the Group’s positive results. CEAT Sri Lanka, engaged in the manufacture and sale of tyres and tubes, demonstrated impressive growth:
- Profit for the Period (JV): The JV recorded a profit of LKR 325,945 thousand for the quarter, a significant recovery from a loss of LKR (107,399) thousand in Q1 2025.
- Total Sales (JV): Total sales volume for the JV increased, reaching LKR 4,081,827 thousand compared to LKR 3,853,159 thousand in the previous year. This was primarily fueled by strong domestic sales, which stood at LKR 3,940,711 thousand.
- Gross Profit (JV): The JV’s gross profit surged to LKR 962,539 thousand from LKR 782,063 thousand in Q1 2025, reflecting improved operational efficiency and market conditions.
The “Share of results of JV Net of Tax” for KELANI TYRES PLC itself transformed from a loss of LKR (53,699) thousand in Q1 2025 to a robust profit of LKR 162,973 thousand in the current quarter, directly impacting the Group’s bottom line.
Strengthened Financial Position
The Group’s financial position also showed positive momentum as of June 30, 2026, compared to March 31, 2026:
- Total Assets: Increased to LKR 7,928,427 thousand from LKR 7,766,901 thousand.
- Total Equity: Grew to LKR 7,678,213 thousand from LKR 7,520,623 thousand.
- Net Asset Value Per Share: Improved to LKR 95.50 as of June 30, 2026, up from LKR 93.54 at the end of the previous financial year.
Market Performance and Compliance
The company maintains a healthy public shareholding, with 46.811% of shares held by 10,305 shareholders as of June 30, 2026. This demonstrates compliance with Option 4 of Rule 7.13.1.i (a) of the Listing Rules of the Colombo Stock Exchange (CSE) pertaining to minimum public holding.
During the quarter, KELANI TYRES PLC’s share price recorded a high of LKR 92.00 and a low of LKR 80.00, closing at LKR 89.10 on June 30, 2026.
Outlook
The impressive turnaround in the first quarter signals a strong start to the financial year for KELANI TYRES PLC. The sustained profitability and growth in its core joint venture operations position the company favorably amidst evolving market dynamics in Sri Lanka’s automotive and industrial sectors.
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