JAT Holdings sustains growth momentum with 14% revenue and 16% PBT increases

Founder and Managing Director Aelian Gunawardene

Executive Director and CEO Nishal Ferdinando

JAT Holdings PLC, Sri Lanka’s leader in wood coatings and a diversified conglomerate in the manufacturing sector, continued its strong performance into the second quarter of FY 2025/26, recording a 14 percent year-on-year (YoY) growth in revenue to Rs.5.15 billion and a 29 percent increase in gross profit to Rs.1.8 billion, supported by strategic cost control, product mix optimisation and efficiencies from its backward vertical integration initiatives.
Gross profit margins strengthened from 31 percent to 35 percent, reflecting improved manufacturing efficiencies and disciplined pricing strategies. Operating profit grew 14 percent to Rs.569 million, while profit before tax increased 16 percent YoY to Rs.474 million, underscoring the group’s operational resilience and strategic focus amid the evolving market conditions.
Export revenue declined 11 percent YoY, primarily due to a 9 percent drop in Bangladesh sales, which was largely driven by currency conversion effects. The sales in BDT terms grew 3 percent YoY, reflecting gradually improving economic stability in Bangladesh. Local revenue growth remained robust at 23 percent, driven by strong performance across the wood coatings, brushes and rollers and projects categories.
The group’s EV charger manufacturing venture delivered Rs.378 million, which is 7 percent of the total revenue, up significantly from Rs.35 million in the same period last year, further reinforcing JAT’s innovation-driven diversification strategy.
Profit after tax (PAT) for the period declined 22 percent YoY to Rs.398 million, solely due to the differed tax asset recognised in FY 24/25 as against a liability in the current year. Despite the decline in PAT, JAT’s underlying profitability and growth trajectory remained strong, supported by healthy gross profit margins.
JAT Holdings CEO Nishal Ferdinando stated, “Our 2Q performance reaffirms the strength of JAT’s business model, driven by operational excellence, product innovation and strong domestic market fundamentals. As we continue to expand our footprint and integrate sustainable solutions such as EV charging, we remain well-positioned for long-term value creation.”
Managing Director Aelian Gunawardene added, “The second quarter demonstrates JAT’s strategic agility and prudent decision-making. While global volatility continues to test markets, our focus on efficiency, market expansion and innovation has ensured consistent progress and shareholder value. With JAT’s acquisition of Mirotone (NZ) Limited, New Zealand’s leading industrial wood coatings company and a renowned Australian brand with 90 years of heritage, we aim to strengthen our global footprint and reaffirm our commitment to innovation and excellence within the coatings industry.”