Colombo, 31 August 2026 – Dankotuwa Porcelain PLC (DPL), a leading name in Sri Lanka’s globally acclaimed porcelain industry, today announced the release of its Annual Report for the financial year ended 31st March 2026. Titled “Heritage, Reimagined,” the report reflects a period of significant operational and strategic recalibration amidst persistent global uncertainties and evolving market dynamics. While the Group continues its journey back to profitability, the report highlights marked improvements in key financial indicators, underscored by robust domestic market performance and enhanced operational efficiencies.
Financial Performance: Navigating Headwinds with Strategic Focus
For the financial year 2025/26, the Dankotuwa Porcelain Group recorded a revenue increase of 3%, reaching LKR 3.98 billion (2025: LKR 3.85 billion). This growth was primarily anchored by a strong performance in the domestic market, which saw a remarkable 14% increase to LKR 2.34 billion, contributing 59% of the Group’s total revenue.
Despite the challenging environment, the Group significantly narrowed its net loss after tax to LKR 610 million, an improvement from the LKR 869 million loss reported in the previous year. This positive shift reflects strategic initiatives focused on cost optimization and efficiency enhancements. Dankotuwa Porcelain PLC, the parent company, also demonstrated resilience, increasing its turnover by 12% to LKR 2.14 billion and reducing its net loss after tax to LKR 282 million (2025: LKR 728 million loss).
Mr. Ranil Pathirana, Chairman of Dankotuwa Porcelain PLC, commented, “While challenges remain, the progress achieved reflects the resilience of our business, the strength of our brands, and provides a solid foundation for restoring sustainable growth.”
Key financial highlights:
- Group Revenue: Increased by 3% to LKR 3.98 billion.
- Group Net Loss After Tax: Reduced to LKR 610 million (from LKR 869 million in FY 2024/25).
- DPL Company Revenue: Grew by 12% to LKR 2.14 billion.
- DPL Company Net Loss After Tax: Improved to LKR 282 million (from LKR 728 million in FY 2024/25).
- Domestic Business Growth: Anchored the Group with an exceptional 14% increase.
- Gross Profit: Enhanced by 18% to LKR 976 million, with the gross profit margin improving from 21% to 25%.
Strategic Growth and Operational Excellence
The theme “Heritage, Reimagined” resonated through DPL’s operations, focusing on preserving core values while adapting to modern demands. The report highlights continued investment in enhancing manufacturing efficiencies, optimizing energy consumption, and embracing digital innovation, including the migration of its Enterprise Resource Planning (ERP) system to a cloud-based platform and exploration into Artificial Intelligence for brand communication.
Mr. Miyuru Rajapakshe, Chief Executive Officer of Dankotuwa Porcelain PLC (appointed effective April 1, 2026), noted, “The financial year 2025/26 tested our global resilience. While we recorded a meaningful improvement in key fronts, our primary focus was strengthening business fundamentals. Enhanced manufacturing efficiencies drove our gross profit up by 18%, while our domestic business anchored us with an exceptional 14% growth.”
International markets, however, remained challenging, with Group export revenue declining by 9%. The subsidiary, Royal Fernwood Porcelain Limited (RFPL), faced a 5% decline in turnover, primarily due to a 20% reduction in international sales, particularly in the US market. Despite this, RFPL’s domestic business performed strongly, and the Group is actively pursuing market diversification across India, Europe, and the United States.
Commitment to Governance and Stakeholders
The Annual Report underscores DPL’s unwavering commitment to the highest standards of corporate governance, transparency, and accountability. The Board of Directors, with recent leadership changes including the appointment of Mr. Miyuru Rajapakshe as CEO, continues to oversee strategic direction and uphold ethical business conduct. The company also ensured prompt disclosure and corrective measures for a compliance-related share transaction involving a related party.
In a demonstration of its social responsibility, Dankotuwa Porcelain PLC extended assistance to 133 employees and their families affected by Cyclone Ditwah, providing essential supplies, clean-up support, and aid for home repairs and rebuilding.
Looking Ahead: Sustained Growth and Value Creation
Dankotuwa Porcelain PLC remains optimistic about its future, with clear strategic priorities aimed at restoring profitability, strengthening competitiveness, and generating sustainable long-term value for its shareholders. The Group plans to intensify market accessibility domestically, expand its premium product portfolio, and pursue operational excellence through continuous improvement and innovation.
Source: Read original document
