Teejay navigates industry headwinds with financial strength and strategic focus

Chairman Ajit Gunewardene	CEO Pubudu De Silva

The Teejay group recorded revenue of Rs.60.04 billion during the period, reflecting a 10 percent year-on-year (YoY) decline, primarily due to continued softness in global textile demand. 

This performance was largely impacted by reciprocal tariffs imposed by the United States, intensified pricing pressures across key markets and the resulting decline in volumes, all of which collectively weighed on the topline growth.

Group gross profit declined by 36 percent YoY to Rs.5.02 billion, mainly attributable to lower production volumes, underutilisation of plant capacity, sustained pricing pressures and an unfavourable product mix. Together, these factors adversely affected margin performance amid a challenging operating environment.

The group reported a profit after tax of Rs.54.7 million, representing a 98 percent YoY decline. This was primarily driven by higher rupee-denominated costs and non-recurring items, provision for doubtful debts and restructuring costs associated with right-sizing initiatives.

Teejay Group Chairman Ajit Gunewardene said, “The year was marked by persistent global demand softness and pricing pressures, which impacted results. Despite this, we focused on operational efficiency, cost discipline and strengthening our financial resilience. These actions position the group to navigate the ongoing uncertainty while remaining committed to long-term value creation for our shareholders.”

Despite these near-term challenges, the Teejay group continues to maintain a strong financial position, supported by disciplined working capital management and a robust liquidity base. As at March 31, 2026, cash and cash equivalents stood at Rs.8.3 billion, while the group’s net asset base increased by 3 percent YoY to Rs.32.4 billion, reinforcing the resilience of its balance sheet.

Further reflecting the group’s focus on value preservation, net asset value per share improved from Rs.43.70 to Rs.44.91 YoY, underscoring its continued commitment to safeguarding shareholder value amid a demanding operating environment.