COLOMBO, Sri Lanka – 31 August 2026 – Kelani Cables PLC (CSE: KELANI), Sri Lanka’s premier manufacturer of electrical cables and allied products, today announced the release of its Annual Report for the financial year ended 31st March 2026. The report highlights a period of significant growth and resilience, as the company navigated a demanding operating environment to deliver impressive financial results and solidify its market leadership.
Strong Financial Performance Driven by Market Recovery
Kelani Cables PLC recorded its highest-ever revenue, reaching an impressive Rs. 20.62 billion for the financial year 2025/26, marking a substantial 16.8% increase over the previous year’s Rs. 17.66 billion. This growth was largely propelled by higher local trading volumes and a robust rebound in construction activity across Sri Lanka, indicating sustained demand for the company’s diverse product portfolio. Export sales also remained a key component, demonstrating continued international recognition for the Kelani Cables brand.
Despite a challenging raw material landscape, where London Metal Exchange (LME) copper prices escalated by approximately 24% in the second half of the financial year and the Rupee depreciated against the US Dollar, the company maintained profitability. While gross profit declined by 5.2% to Rs. 3.92 billion and gross profit margins contracted to 19.0% from 23.4%, strategic financial management helped boost the bottom line. The company reported a post-tax profit of Rs. 2.4 billion, up from Rs. 2.3 billion in the prior year, reflecting a 4.2% increase.
Further demonstrating its financial strength, Kelani Cables generated approximately Rs. 1.3 billion in operating cash flow, effectively doubling the Rs. 0.6 billion generated in the previous year. This significant improvement in cash conversion provides considerable financial flexibility for future investments and growth initiatives. Total assets increased by 15.8% to Rs. 19.23 billion, with shareholder equity rising by 15.6% to Rs. 15.31 billion. In December 2025, a 10-for-1 share subdivision was successfully executed to enhance the liquidity and accessibility of Kelani Cables PLC shares on the Colombo Stock Exchange (CSE).
Resilient Operations Amidst a Dynamic Operating Environment
The Annual Report underscores Kelani Cables’ adaptability in an evolving local and global economic landscape. Sri Lanka’s economic recovery gained momentum in 2025, with a GDP growth of 5.0%, supported by stronger private consumption, easing inflation, and improving macroeconomic stability. The construction sector, a vital market for Kelani Cables, recorded strong growth of 16.3% in the first quarter of 2026.
Globally, economic growth remained resilient despite geopolitical tensions, trade policy uncertainty, and commodity price volatility. The significant increase in copper prices, a primary raw material, presented cost pressures. However, the company’s focus on prudent pricing, procurement, inventory management, and operational efficiency enabled it to navigate these challenges effectively.
Even in the face of Cyclone Ditwah in late November 2025, which caused widespread disruption across the country, Kelani Cables maintained operational continuity. Its manufacturing facilities were not directly affected, allowing production to continue without material disruption, showcasing the robustness of its manufacturing network and supply chain management.
Integrated Capitals for Sustainable Value Creation
Kelani Cables PLC’s 2025/26 Annual Report adopts an integrated reporting approach, detailing how its various capitals contribute to long-term value creation:
- Intellectual Capital: The company continues to bolster its technical expertise, innovation, and digital capabilities. Recognised with ISO 9001:2015 and ISO 14001:2015 certifications, and as Sri Lanka’s pioneer and only UL-certified manufacturer of enamelled winding wire, Kelani Cables prioritizes operational excellence and customer-centric innovation. Digital transformation initiatives, including migration to Microsoft 365 and ERP integration, drive efficiency and data-driven decision-making.
- Natural Capital: A strong commitment to environmental stewardship is evident through efficient resource management, energy optimization, and emissions reduction. The company’s solar photovoltaic installations reduce energy costs and carbon footprint. Notably, 100% of copper and aluminium waste, along with PVC process waste, is directed for recycling, demonstrating a strong push towards circularity. Initiatives like tree planting at its facilities further enhance biodiversity.
- Social and Relationship Capital: Maintaining strong stakeholder relationships is fundamental. The company reported a customer satisfaction level of over 80% and serves a diverse base of 1,062 distributors, 16 export customers, and 1,702 institutional customers. Flagship CSR initiatives like ‘Kelani Saviya’ (training over 800 electrical technicians) and ‘Kelani Shakthi’ (certifying over 500 technicians in the Northern Province) empower youth and address industry skill gaps, contributing significantly to social development.
- Human Capital: With a staff strength of 522 employees, Kelani Cables invests significantly in talent development, leadership, and employee well-being. A high-performance culture, supported by continuous training (Rs. 3 million invested in 2025/26) and a commitment to zero major workplace accidents, fosters a motivated and engaged workforce.
- Manufactured Capital: Continuous investment in production capabilities is a strategic priority. Capital expenditure amounted to approximately Rs. 152 million, supporting upgrades in machinery, installation of new equipment, and construction of new factory buildings. The embedding of 5S and Kaizen principles drives continuous improvements in efficiency and productivity.
Robust Governance and Forward-Looking Outlook
The Board of Directors emphasized its commitment to the highest standards of corporate governance, transparency, and accountability, in compliance with CSE Listing Rules and the Code of Best Practice on Corporate Governance 2023. This robust framework ensures effective risk management and strategic alignment.
Looking ahead, Kelani Cables PLC remains focused on protecting margins, improving working-capital efficiency, and generating sustainable operating cash flows. The company will continue to optimize capital deployment and reinvestment, balancing prudent financial management with strategic investments to power progress across markets, industries, and generations.
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