Hemas Holdings reports mixed 3Q results as healthcare gains offset consumer softness

CEO Ashish Chandra

Hemas Holdings PLC posted a mixed performance in the third quarter ended December 2025, with the earnings rebounding sequentially but declining year-on-year (YoY), due to the temporary disruptions from Cyclone Ditwah and seasonal shifts in demand.

The quarterly earnings stood at Rs.2.64 billion, up 28 percent from 2Q but down 12.8 percent from the same period last year. 

The YoY decline reflected two key factors: the preponement of demand in the learning segment into the second quarter and temporary disruptions caused by Cyclone Ditwah, which struck Sri Lanka in late November. 

The group revenue for 3Q rose 5.3 percent YoY to Rs.35 billion and 8.4 percent compared to the prior quarter, underpinned by seasonal strength in consumer brands and continued growth in healthcare. The consumer brands reported a softer quarterly performance, with revenue declining 9.9 percent YoY to Rs.14.5 billion. In contrast, healthcare posted revenues of Rs.19.9 billion for the quarter, achieving a growth of 19.6 percent, with the operating profits of Rs.1.7 billion and an earnings growth of 19.9 percent to Rs.1.1 billion. The higher volumes from the pharmaceutical segment contributed to the increase in revenue while the hospital segment saw increased inpatient and outpatient demand. The mobility quarterly revenue and earnings increased to Rs.612.4 million and Rs.237.9 million, respectively, recording a growth of 18.1 percent and 42.7 percent, respectively. This performance was supported by the successful introduction of the China-India Express service, which emerged as a key driver of incremental volumes. 

The net finance costs for the quarter remained well-managed. On a YoY basis, the finance costs fell 70 percent, reflecting the group’s low debt levels, though the costs rose 48 percent quarter-on-quarter, remaining modest relative to the operating cashflows.

“The resilience of our healthcare and mobility platforms, coupled with a strong balance sheet and diversified portfolio, enabled us to navigate the temporary disruptions and position the group for continued growth,” Hemas Group CEO Ashish Chandra said. For the nine months ended December, Hemas reported a revenue growth of 9.4 percent to Rs.95.8 billion and cumulative earnings of Rs.5.9 billion, up 7.5 percent YoY. The operating profit remained broadly stable at Rs.9.8 billion, supported by a strong performance in healthcare and mobility, which offset the margin pressures in select consumer brands categories.

Hemas navigated a challenging macro environment, with a 2.4 percent depreciation of the Sri Lankan rupee, tight monetary conditions and the impact of Cyclone Ditwah, which caused an estimated US $ 4.1 billion in national economic damage. The group’s facilities were unharmed but temporary distribution disruptions and softer consumer demand affected the performance in the latter part of the quarter. The company committed Rs.30 million in immediate humanitarian relief and Rs.200 million to support the SMEs in its value chain.