JAT Holdings PLC, a leading Sri Lankan conglomerate in the manufacturing and coatings industry, announced its financial results for the first quarter of the 2025/26 financial year, reflecting a stable and promising start despite external market challenges. Traditionally with the first quarter being the lowest demand quarter for the paint industry due to seasonality and the peak in the fourth quarter, the Group still recorded a notable 20% year-on-year (YoY) growth in profit after tax (PAT), signalling its continued ability to adapt, optimise, and deliver value in a dynamic economic landscape.
Revenue for the quarter grew by 3% YoY to Rs. 2.26 billion, with gross profit rising 26% to Rs. 830 million. This translated to a significant improvement in gross profit margin, which increased from 30% to 37% driven by enhanced cost efficiencies from the backward-integrated manufacturing facilities and direct distribution strategies. Operating profit surged by 54%, while profit before tax rose by 18% YoY, reinforcing the Group’s underlying financial health and operational discipline.
Export sales, which contributed 25% of total revenue this quarter (compared to 32% in the same quarter last year) fell 18% overall, driven mainly by a 16% decline in Bangladesh revenue, closer to 10% when adjusted for exchange rate fluctuations. However, this quarter marked a recovery phase from the political and economic turmoil experienced in Bangladesh and is being compared with an issue-free quarter. Despite the export revenue decline, local revenue increased by a notable 13%, totalling Rs. 1.69 billion.
Category-wise, growth was led by a 25% increase in the Projects segment, reflecting the momentum from resumed economic activity and infrastructure demand. The wood coatings category recorded a 6% increase, while Brushes and Rollers saw a 4% uptick. Backward vertical integration continued to deliver returns, with the acrylic binder and alkyd resin manufacturing plants operating at 70% and 86% capacity respectively offering further room for margin expansion in the coming quarters.
Notably, JAT also began to unlock value from new innovation-driven revenue streams. Through its electric vehicle (EV) charger manufacturing line, the Group generated Rs. 192 million in revenue, accounting for 8% of Q1’s topline. With confirmed orders including over 2,000 home chargers and over 20 fast chargers, this line represents a high-potential vertical aligned with future mobility trends.
Other income was bolstered by margins obtained from the sale of UV curing lines to leading Bangladeshi customers executed in partnership with Giardina Group, a global leader of finishing equipment for the wood coatings industry marking a potential expansion avenue for JAT in high-tech coating solutions.
JAT’s continued investment in ESG-led initiatives was also evident this quarter. In collaboration with the Sri Lanka Central Federation of the Deaf, the Company conducted a specialised training programme for uniquely abled painters, offering practical exposure and formal certification in painting and wood coating techniques. The initiative reaffirms JAT’s commitment to equity, inclusion, and social upliftment within the coatings industry.
Internationally, JAT showcased its sustainable innovation at the Wood International Expo in Nairobi, Kenya, solidifying its presence on the global stage and reinforcing its position as a thought leader in premium, eco-conscious wood coating solutions.
Commenting on the Group’s Q1 performance, JAT Holdings PLC CEO and Executive Director Nishal Ferdinando said:
“Our Q1 results reflect a strong and disciplined start to the new financial year. Despite continuing macroeconomic challenges, our margin resilience, product innovation, and expanding opportunities in EV infrastructure and international markets reinforce our long-term growth trajectory. We remain focused on delivering sustainable value to our stakeholders across geographies.”
Managing Director of JAT Holdings PLC, Aelian Gunawardene, added:
“Our Q1 financial performance reflects prudent decision-making and strong fundamentals. In a quarter where exports were tested by regional volatility, our local market growth, cost efficiencies, and margin improvements enabled us to record a 20% rise in PAT and a 54% increase in operating profit. This resilience underscores the strength of our integrated model and our ability to deliver value even in unpredictable macroeconomic conditions.”
JAT’s sustained brand strength was recognised in the LMD Brands Annual 2025, where the Company was ranked among the Top 50 Corporate Brands and secured the #5 position in the Home Finishing category. This recognition, along with its AA (lka) Fitch rating and numerous industry accolades, reflects JAT’s enduring trust, performance, and relevance across the markets it serves.
As the Group moves into the remainder of FY 2025/26, its strong first-quarter performance sets a confident tone for its strategic priorities anchored in innovation, operational efficiency, and regional expansion.
