Colombo, Sri Lanka – 25 August 2026 – Browns Investments PLC (BI), a prominent diversified investment arm of the LOLC Group, has released its Annual Report for the financial year ended 31st March 2026. The report details a period of significant operational expansion and robust revenue growth across its diverse portfolio, even as the company navigated challenging economic conditions that impacted its bottom line.
For the fiscal year 2025/26, Browns Investments PLC recorded a remarkable Group turnover of Rs. 99.13 billion, a substantial increase from Rs. 61.82 billion in the previous year. This impressive top-line growth reflects the company’s strategic initiatives and operational resilience across its core sectors. However, the Group experienced a shift in its profitability metrics, reporting a loss after tax of Rs. 24.75 billion for FY2025/26, compared to a profit of Rs. 53.33 billion in the prior year. Similarly, profit attributable to equity holders moved to a loss of Rs. 21.88 billion from a profit of Rs. 57.66 billion in FY2024/25, resulting in a negative Earnings Per Share (EPS) of Rs. (1.52).
Despite the profitability challenges, the Group’s total assets saw a healthy increase to Rs. 685.94 billion from Rs. 670.14 billion, demonstrating continued investment and growth in its asset base. Total external debt also rose to Rs. 87.48 billion, up from Rs. 69.92 billion, leading to an increase in the debt-to-equity ratio to 49.33% from 35.83%.
Strategic Diversification Drives Operational Growth
Browns Investments PLC continued to leverage its diversified portfolio spanning plantations, leisure, engineering, and mining across Sri Lanka, Africa, Asia, and the Indian Ocean. The Group’s strategic approach focused on enhancing operational excellence, accelerating sustainability initiatives, and leveraging technology to create long-term value.
Plantations & Agriculture Sector Demonstrates Resilience and Innovation
The Plantations & Agriculture sector emerged as a key growth driver, strengthening its position as one of the world’s largest and most geographically diversified plantation enterprises. The sector, with operations across Sri Lanka, Kenya, Tanzania, Rwanda, and China, achieved a collective revenue of over Rs. 23.46 billion from its Sri Lankan portfolio alone. Notable successes included the strong performance of Tea Smallholder Factories PLC post-acquisition and the resilience of Udapussellawa Plantations PLC, Hapugastenne Plantations PLC, Maturata Plantations Ltd, and Pussellawa Plantations Ltd, with most remaining profitable despite rising operating costs.
Technology and sustainability were central to the sector’s transformation. Investments were made in digital weighing solutions, automated dryer mouth tea weighing systems, and mechanised harvesting equipment, with approximately 2,450 harvesters deployed and an additional 1,000 procured. A significant stride in sustainability was the investment of approximately Rs. 660 million in a rooftop solar project covering 20 factories, with 2.83 MW already completed, aiming for a 60-70% reduction in conventional energy dependence and an ambition for carbon net-zero operations by 2040. The sector’s commitment was recognized with multiple national and international awards for sustainability and operational excellence, including the prestigious Control Union Deforestation-Free Standard (DFS) Certificate for Hapugastenne Plantations PLC, a global first.
Internationally, Browns Plantations Kenya returned to profit, while Browns Plantations Tanzania significantly reduced losses through an innovative revenue-sharing model. Browns Plantations Rwanda increased tea production with a USD 2.4 million investment in manufacturing capacity, and Browns Plantations (Guizhou) Tea Co., Ltd. in China remained profitable. Sunbird Sierra Leone reported its strongest production but was impacted by market disruptions, with its sugar production project slated for completion by FY2027/28.
Leisure Sector Achieves Record Performance and Expands Wellness Offerings
The Leisure sector, operating under Browns Hotels & Resorts, delivered its strongest financial performance to date, capitalizing on a recovering global tourism industry. The company focused on operational excellence through unified property management systems, digital concierge solutions, and process digitalization. Significant investments were made in modernizing properties, with 15% of the room inventory undergoing refurbishment, including major renovations at Dickwella Resort & Spa and Club Hotel Dolphin.
A significant development was the addition of Newburgh Ella – The Tea Factory Resort to the portfolio and the launch of the “Ayuwasa Wellness” concept across properties, integrating traditional Ayurvedic treatments with holistic wellbeing programmes to meet growing demand for personalized wellness experiences. The Group received 41 national and international awards, affirming its leadership in the hospitality sector. Sheraton Kosgoda Turtle Beach Resort emerged as the principal contributor, increasing revenue by 10% year-on-year to Rs. 1.9 billion and achieving ISO 14001 certification. Barceló Nasandhura Malé, in its inaugural year, generated USD 6.61 million in revenue and gained recognition as a leading urban hospitality destination. Radisson Blu Poste Lafayette Resort & Spa in Mauritius sustained a resilient performance, renewing its Green Key Certification for the fourth consecutive year.
Engineering & Construction Navigates Transition with Improved Margins
The Engineering & Construction portfolio underwent a strategic transition, focusing on strengthening margins and optimizing cost structures. While revenue amounted to Rs. 2.7 billion (down from Rs. 5.6 billion), gross profit margins substantially improved from approximately 14% to 25%, reflecting successful management initiatives. Browns Engineering secured project management consultancy mandates for significant developments, including a USD 108 million five-star resort in North Malé Atoll, Maldives, and the Marina Development within Port City Colombo. The telecommunications division continued to expand its infrastructure deployment and maintenance services across Sri Lanka. Sierra Cables delivered an exceptional performance, recording its highest-ever revenue of Rs. 16 billion (a 70% increase), operating profit of Rs. 3.0 billion, and profit after tax of Rs. 2.5 billion. Its commitment to sustainability was recognized with multiple awards, including the Gold Award for Annual Exporter and the Four-Star Green Label Award.
Mining Sector Strategic Pivots and Asset Value Growth
In the Mining sector, Browns Metal & Sands pivoted to export-oriented industrial mineral operations, focusing on granite extraction and processing from its Matugama quarry, which received both B Grade Mining and A Grade Trading Licences. Despite initial investments leading to a loss of Rs. 117.7 million, the business anticipates substantial U.S. dollar revenue streams from exports. LOLC Investment Holdings Four, engaged in mechanised gem mining, reported a loss of Rs. 567 million but maintains a strong asset base of Rs. 1.4 billion in gemstone inventories. Iconic Trust (Pvt) Ltd recorded a significant profit of Rs. 880 million, primarily due to fair value gains on its investment portfolio.
Commitment to Robust Governance and Sustainability
Browns Investments PLC affirmed its commitment to maintaining a robust corporate governance framework, fully complying with the Listing Rules of the Colombo Stock Exchange. The company has also adopted the SLFRS S1 and S2 standards for sustainability-related financial disclosures, with applicable transitional reliefs, reinforcing its dedication to transparent reporting on environmental, social, and governance (ESG) matters.
The Annual Report for FY2025/26 paints a picture of a dynamic conglomerate adept at leveraging its diversified structure for top-line expansion and strategic positioning, even as it addresses short-term profitability challenges within a complex global and domestic economic landscape.
Source: Read original document
