Colombo, Sri Lanka – 28 August 2026 – Lanka Aluminium Industries PLC (CSE: LALU), a leading manufacturer of premium aluminium extrusion solutions, today announced the submission of its Annual Report for the financial year ended 31st March 2026. The report, filed with the Colombo Stock Exchange (CSE), highlights a resilient performance amidst a challenging economic environment, with group revenue increasing by 3% to Rs. 3,509 million.
Despite the modest revenue growth, the group experienced a moderation in profitability, reporting a profit after taxation of Rs. 309 million, down from Rs. 356 million in the previous year. This performance reflects the persistent economic headwinds, including minimal growth in the construction sector, disruptions from the DITWA cyclone, and elevated raw material and energy prices exacerbated by geopolitical events in the Middle East. Notably, the group maintained a robust financial position, remaining debt-free for the third consecutive year and generating net cash of Rs. 325 million from operations during the period.
Financial Performance Overview
For the financial year ended 31st March 2026, Lanka Aluminium Industries PLC reported:
- Group Revenue: Rs. 3,509 million, a 3% increase from Rs. 3,406 million in FY2024/25. This was primarily driven by an 8.49% revenue increase at the company level, reflecting improved market penetration and sustained demand for its core product portfolio.
- Gross Profit: Rs. 742 million, a decrease from Rs. 830 million in the prior year, attributed to changes in the sales mix and margin compression.
- Profit After Taxation: Rs. 309 million, compared to Rs. 356 million in the previous year. Group profit before tax stood at Rs. 428 million.
- Return on Equity (ROE): 9% (FY2024/25: 12%).
- Return on Capital Employed (ROCE): 10% (FY2024/25: 14%).
The Chairman’s Statement acknowledged that while the company-level profit remained stable, subsidiary performance, particularly in the renewable energy sector, did not meet expectations due to unexpected disruptions. The report underscores the company’s prudent cost management and disciplined operational execution in mitigating these impacts.
Strategic Direction and Corporate Governance
Lanka Aluminium Industries PLC remains committed to pursuing growth through the acquisition of new businesses, a strategy that necessitates prudent management of cash reserves. The Annual Report also details recent changes to the Board of Directors, reinforcing the company’s commitment to robust corporate governance.
- Mr. Amitha Gooneratne resigned from the Board effective 31st July 2026.
- Mr. Sriyan J. de Silva Wijeyeratne was appointed as an Independent Non-Executive Director on 3rd August 2026. He subsequently assumed the Chairmanship of both the Nomination and Governance Committee and the Audit & Risk Management Committee on 5th August 2026.
The Board emphasized its focus on maintaining the highest standards of accountability, transparency, and ethical conduct, ensuring that the interests of all stakeholders are comprehensively considered in corporate decision-making.
Dividend Announcement and Annual General Meeting
In recognition of sustained financial strength and careful consideration of market conditions, the Board of Directors has recommended a first and final dividend of Rs. 1.25 per share for the financial year ended 31st March 2026. This dividend will be presented for shareholder approval at the Fortieth Annual General Meeting (AGM) of Lanka Aluminium Industries PLC, scheduled to be held virtually on 21st September 2026 at 10:30 a.m.
Commitment to Sustainability and Social Responsibility
Lanka Aluminium Industries PLC reiterated its vision of “Shaping Tomorrow with Innovation, Quality & Sustainability.” As a BOI-approved company founded in 1983, it continues to be a pivotal player in Sri Lanka’s architectural, construction, engineering, transport, and industrial sectors. The company’s Corporate Social Responsibility (CSR) initiatives focus on environmental stewardship through aluminium recycling and promoting aluminium as a sustainable alternative to timber, thereby contributing to deforestation reduction. Additionally, the company invests in community development through fabricator training programs, empowering talented youth and fostering entrepreneurship.
Litigation Updates
The Annual Report provides an update on significant legal matters:
- The case filed by Isha Alu Design and Distributors (Pvt) Ltd against Lanka Aluminium Industries PLC (Case No. DMR/01699/2014) was dismissed in favour of Lanka Aluminium Industries PLC by the Additional District Judge of Colombo on 27th July 2026.
- Discussions are ongoing for a settlement in the intellectual property case filed by Alumex PLC against Lanka Aluminium Industries PLC (CHC/13/21/IP), with the next hearing scheduled for 4th September 2026.
Lanka Aluminium Industries PLC remains confident in its ability to navigate the evolving economic landscape, leveraging its strong market position, innovative solutions, and unwavering commitment to its stakeholders to ensure long-term sustainable growth.
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