COLOMBO – August 31, 2026 – Harischandra Mills PLC (CSE: HARC), a revered name in Sri Lankan households for generations, today announced its robust financial performance for the year ended March 31, 2026, alongside a pivotal shift in its ownership structure. The company’s Annual Report for FY 2025/26, officially released today, showcases a narrative of resilience, innovation, and strategic expansion, captured under its theme, “From Local Legacy to Global Opportunity.”
The reporting period marks a significant chapter for Harischandra Mills, which not only delivered impressive financial growth amidst a complex macroeconomic environment but also underwent a change in controlling interest shortly after the financial year-end.
Strong Financial Performance Driven by Core Segments
Despite persistent macroeconomic complexities, including moderating but still impactful food price inflation and commodity cost pressures, Harischandra Mills PLC reported a stellar performance for FY 2025/26:
- Revenue Growth: The company recorded a revenue of Rs. 6.73 billion, a commendable 6.5% increase year-on-year from Rs. 6.32 billion in the prior year.
- Profitability Surge: Net Profit After Tax reached Rs. 295 million, reflecting a significant growth of 16.6% compared to the previous year. Profit Before Tax also rose by 17.5% to Rs. 412 million.
- Segmental Drivers: The Food segment remained the primary growth engine, contributing 73% of total Group revenue with a 7.1% increase and a 22.1% growth in operating profit. The Soap segment also saw positive revenue growth of 6.6%, though its profitability was squeezed by rising raw material costs. The Fuel & Lubricants segment grew 3.6% in revenue, but operating profit declined by 52% due to revised dealer margins.
- Asset Expansion: Total assets expanded by 15.2% to Rs. 3,180.5 million, largely driven by capital investments in production capacity and a strategic build-up of inventories. Total equity increased by 7.2% to Rs. 1,959.9 million.
Chairman Mr. T.K. Bandaranayake remarked in his review, “This outcome is a testament to the enduring strength of our brands, the operational discipline of our management team and our committed workforce, and the loyalty of the millions of consumers who have continued to place their trust in Harischandra products throughout the years.”
Macroeconomic Context and Operational Resilience
The Annual Report details Sri Lanka’s sustained economic recovery in 2025/26, with real GDP growing by 5.0% in calendar year 2025 and headline inflation remaining low, registering 2.2% in March 2026. This period, however, was not without its challenges, notably Cyclone Ditwah in late 2025, which caused an estimated USD 4.1 billion in physical damage, and the escalation of the Middle East conflict, impacting global energy prices.
Harischandra Mills proactively managed these shocks through buffer stock strategies, supplier diversification, and a comprehensive modernization of its distribution and transport fleet, facilitated by the relaxation of vehicle import restrictions.
Landmark Ownership Transition to Ambeon Essentials
A significant development subsequent to the financial year-end was the acquisition of a controlling stake in Harischandra Mills PLC by Ambeon Essentials (Private) Limited, a wholly owned subsidiary of Ambeon Capital PLC. This transaction, materializing on May 12, 2026, saw a group of long-standing shareholders, close family members of the founder, divest their 51.11% shareholding.
This ownership transition led to changes in the Board of Directors, with four new nominees from Ambeon Essentials (Private) Limited joining the board following the resignation of two Executive and two Non-Executive Independent Directors. Mr. T.K. Bandaranayake, while expressing gratitude to the outgoing board, conveyed confidence that the company’s core values of quality, integrity, and community support would endure under its new stewardship.
Strategic Investments and Sustainability Initiatives
The company’s report underscores its commitment to long-term growth through strategic investments:
- Enhanced production capacity and a modernized fleet provide a stronger operational foundation.
- Significant progress was made in strengthening the sustainability framework, with preparations for adopting SLFRS S1 and SLFRS S2 (Sustainability-related Financial Information and Climate-related Disclosures) well ahead of the mandatory timeline.
- The formation of the ‘Harischandra Green Circle’ as a dedicated sustainability steering committee highlights integrated environmental management efforts across energy, water, and waste.
- Noteworthy environmental initiatives include rooftop solar PV systems, a wet scrubber system at the coffee production facility for air quality, and a dedicated wastewater treatment plant.
Managing Director Mr. S.N. Samarasinghe emphasized, “The investments made during the year to strengthen our manufacturing facilities and expand our distribution capabilities have positioned the Company to operate more efficiently while improving both production capacity and product quality.”
Corporate Governance and Community Commitment
Harischandra Mills PLC maintains a strong commitment to corporate governance, with a well-structured Board of Directors and diligent committees (Audit & Risk Management, Remuneration, Nomination & Governance, and Related Party Transactions Review) ensuring transparency and accountability. The company also reported investments in employee welfare and professional development.
The company’s Corporate Social Responsibility (CSR) initiatives remained robust, with a particular focus on healthcare and education in the Matara district and beyond. Key projects included educational relief for cyclone-affected children in Badulla, flood relief for journalist communities, laboratory renovation at Lenama Kanishta Vidyalaya, and the renovation of a children’s park at Matara Model Primary School. These efforts underline Harischandra Mills’ deep-rooted values and its contribution to national economic progress and social well-being.
Looking ahead to FY 2026/27, Harischandra Mills PLC expresses confidence in its strategy to strengthen market position, continue investing in operational excellence, and create sustainable value for all stakeholders, upholding its legacy of quality, authenticity, and trust.
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