JAT Holdings defies low season with 20% profit growth in 1Q

JAT Holdings PLC has kicked off its 2025/26 financial year with a robust 20 percent year-on-year growth in profit after tax (PAT) for the first quarter, a significant achievement during what is traditionally the paint industry’s slowest period. 

The conglomerate demonstrated notable resilience, navigating external market challenges to post strong financial results.

The group’s revenue saw a 3 percent increase to Rs. 2.26 billion, while gross profit surged by an impressive 26 percent in the gross profit margin, which climbed from 30 percent to 37 percent. 

According to the company, this boost in profitability is a direct result of enhanced cost efficiencies from its backward vertical integration initiatives and direct distribution strategies. The company’s operating profit also saw a remarkable 54 percent jump. While overall export sales declined by 18 percent, primarily due to a 16 percent drop in revenue from Bangladesh as the region recovers from recent political and economic instability, JAT’s local revenue provided a strong counterbalance. Domestic sales grew by a healthy 13 percent to Rs. 1.69 billion, fuelled by a 25 percent increase in the Projects segment as economic activity and infrastructure demand regained momentum.

A key highlight of the quarter was the successful diversification into new, innovation-led revenue streams. The company’s new electric vehicle (EV) charger manufacturing line generated Rs. 192 million, contributing 8 percent to the total topline in its first quarter of operation. With confirmed orders for over 2,000 home chargers and more than 20 fast chargers, this venture is poised to be a significant growth area for the company.

Nishal Ferdinando, CEO and Executive Director, commented on the performance, stating, “Our 1Q 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.”

Managing Director Aelian Gunawardene added, “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 percent rise in PAT and a 54 percent increase in operating profit.”

The company’s strong performance and brand trust were also recognised as it was ranked among the Top 50 Corporate Brands in the LMD Brands Annual 2025. With a confident start to the fiscal year, JAT Holdings is focused on its strategic priorities of innovation, operational efficiency, and regional expansion for the remainder of FY 2025/26.