LOLC Group delivers strong operating growth as diversified platform gains further scale

LOLC Holdings PLC reported its financial results for the fiscal year ended March 31, 2026, indicating an expansion in core operating profitability and a scaling of its diversified business model.

The conglomerate, maintaining operations across 27 countries, recorded a 49 percent year-over-year increase in results from operating activities, rising to Rs. 71.5 billion from Rs. 47.9 billion in FY2025. Gross income expanded by 28 percent to reach Rs. 430.3 billion, compared to Rs. 336.2 billion in the prior fiscal period. Operating profit before depreciation and amortisation increased to Rs. 88.8 billion from Rs. 60.6 billion, reflecting enhanced earnings capacity and operating leverage across the entity’s underlying assets.

Net interest income grew to Rs. 119.9 billion from Rs. 105.6 billion, alongside a revenue increase to Rs. 158.2 billion from Rs. 109.2 billion. Gross profit expanded to Rs. 61.4 billion from Rs. 43.5 billion. Profit after tax was reported at Rs. 23.4 billion, a year-over-year movement largely attributed to the base effect of one-off items recognized in the preceding comparative period. 

The financial services segment remained the primary revenue driver, generating Rs. 51.7 billion in operating results compared to Rs. 39.2 billion in FY2025. This segment’s asset base appreciated from Rs. 1.09 trillion to Rs. 1.36 trillion, supported by a multi-regional footprint spanning 21 countries across Asia, Central Asia, and Africa, with strategic evaluations underway for Latin American market entry.

Concurrently, net impairment losses on financial assets contracted to Rs. 15.9 billion from Rs. 18.8 billion, occurring simultaneously with an expansion in advances and other loans from Rs. 751.4 billion to Rs. 981.8 billion.

The manufacturing and trading vertical recorded an eightfold increase in operating results to Rs. 9.2 billion, up from Rs. 1.1 billion in FY2025. This sector’s gross income rose to Rs. 76.6 billion from Rs. 50.0 billion, yielding a profit before operating expenses of Rs. 25.3 billion compared to Rs. 14.7 billion previously. 

The plantation and agricultural segment achieved a turnaround, posting an operating profit of Rs. 1.7 billion against an operating loss of Rs. 5.1 billion in FY2025. Gross income for the agri-division grew to Rs. 88.2 billion from Rs. 55.2 billion, with profit before operating expenses escalating to Rs. 48.5 billion from Rs. 29.6 billion. The firm’s tea operations produced approximately 100 million kilograms across a 100,000-hectare portfolio distributed throughout Kenya, Tanzania, Rwanda, China, and Sri Lanka.

The long-term and general insurance segment maintained its fiscal contribution, reporting operating results of Rs. 1.5 billion. 

The leisure and real estate division posted operating results of Rs. 2.0 billion, up slightly from Rs. 1.9 billion in FY2025. Capital reallocation within this segment involved the divestiture of the Barceló Whale Lagoon Maldives Resort for US$ 57.5 million, alongside the commissioning of the Newburgh Ella property and the ongoing development of the Marina Port City project. 

Additionally, the translation of foreign subsidiary financial statements yielded a Rs. 24.0 billion gain in other comprehensive income, providing a natural balance sheet hedge and bolstering total comprehensive income to Rs. 47.2 billion. 

Adjusted total comprehensive income, excluding a Rs. 2.1 billion gain on investments, was approximately Rs. 45 billion, a threefold increase from the adjusted Rs. 16 billion in FY2025, which had excluded a Rs. 54.0 billion acquisition and divestment gain and an Rs. 11.5 billion loss from discontinued operations.

Net asset value per share appreciated by Rs. 101.30, reaching Rs. 822.46 by the end of the fiscal year from Rs. 721.16 in the prior period. Consolidated total assets expanded to Rs. 2.32 trillion from Rs. 2.03 trillion, primarily driven by the Rs. 230.4 billion growth in the loan book.

The investment securities portfolio increased to Rs. 169.6 billion from Rs. 140.9 billion, while property, plant, and equipment valuations stood at Rs. 315.4 billion. 

The capital structure indicated total equity of Rs. 654.3 billion against interest-bearing borrowings of Rs. 672.6 billion, resulting in a gearing ratio of roughly 1.0 times equity. Deposit liabilities totaled Rs. 694.3 billion, culminating in a combined leverage ratio of approximately 2.1 times total equity, positioning the balance sheet for sustained asset deployment.