COLOMBO, Sri Lanka – 02 September 2026 – BPPL Holdings PLC (CSE: BPPL), a pioneer in sustainable manufacturing and circular innovation, has unveiled its Annual Report for the financial year ended 31st March 2026. Titled “WASTE. REIMAGINED,” the report highlights the Group’s unwavering commitment to environmental stewardship, resilient financial performance, and strategic expansion amidst a dynamic operating landscape.
The announcement, made on 01 September 2026, details a year of strategic focus on transforming discarded materials into valuable resources, reinforcing the company’s vision of creating a cleaner, more resource-efficient future.
Financial Resilience and Growth
BPPL Holdings PLC reported a consolidated revenue of Rs. 5.6 billion for FY2025/26. While a marginal increase from the Rs. 5.5 billion reported in the previous year, it’s important to note that the prior year’s figure included a Rs. 369 million charge from a hedging reserve write-off. Excluding this one-off adjustment, the Group’s revenue for FY2025/26 saw a 5% decline compared to the adjusted previous year’s performance.
- EBITDA: The Group’s Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) significantly improved to Rs. 902 million from a reported Rs. 569 million in FY2024/25. After excluding one-off items from the prior year, the current year’s EBITDA shows a 9% decrease from the adjusted Rs. 992 million.
- Net Earnings: Net earnings after tax witnessed a substantial positive shift, reaching Rs. 263 million, a marked improvement from a negative Rs. 55 million in the preceding year. Adjusting for one-off accounting entries, net earnings decreased by 16% from Rs. 311 million in FY2024/25.
- Debt-to-Equity: The company successfully reduced its debt-to-equity ratio to below 50% from 58% in the previous year, reflecting prudent capital allocation and efficient working capital management.
- Dividends: The Board of Directors declared two interim dividends totaling Rs. 153 million, amounting to 50 cents per share.
“WASTE. REIMAGINED”: A Strategic Imperative
BPPL’s core philosophy, “WASTE. REIMAGINED,” underpins its journey from conventional recycling to embracing broader circular solutions. The report emphasizes innovation and intention in transforming discarded plastic bottles and textiles into high-quality recycled raw materials and finished products. This approach not only minimises environmental impact but also creates a resilient value chain delivering commercial success and measurable environmental outcomes.
Segmental Performance Overview
- Brush Segment: Faced initial challenges due to the imposition of tariffs in the US market, which led to an immediate drop in volumes. However, with tariff rates later reduced, volumes steadily increased towards the latter part of the financial year. The segment demonstrated resilience, recording improved gross margins.
- Yarn Segment: Maintained revenues at levels similar to the previous year and achieved improved gross margins. However, it continues to face significant price pressures from imported recycled polyester yarn. The report advocates for the withdrawal of the Value Added Tax (VAT) exemption on Draw Textured Yarn (DTY) to enhance local competitiveness.
- Monofilaments Segment: Showcased robust growth with increases in both revenues and gross profits, primarily driven by higher prices realised from sales to non-captive customers.
Pioneering Circularity and Environmental Accountability
BPPL’s commitment to environmental sustainability is evident through its extensive collection and recycling initiatives:
- Plastic Collection: The Group collected over 121.5 million PET bottles in FY2025/26, marking a 14.3% increase year-on-year and bringing the cumulative total since 2011 to over 869.5 million bottles.
- Waste Reduction: Significant reductions were achieved in polythene (10%), carton (52%), wood mix plastic dust (28%), and sawdust (6%) waste. However, rejected wooden blocks, food waste, and paper waste saw increases, highlighting areas for continued focus.
- Water Management: The Ingiriya Brush Plant continued to demonstrate efficient water usage, recording a further 5.1% reduction in consumption.
- Certifications & Partnerships: BPPL continues to maintain ISO 9001, ISO 14001, and ISO 45001 certifications. Eco Spindles successfully obtained BIS (Bureau of Indian Standards) and RCS (Recycled Claim Standard) certifications, with the first audit for GRS (Global Recycled Standard) successfully completed. The Group actively participated in the MEPA Plastic Collection Project, the Green Wheels Plastic Collection Project (deploying 50 electric bikes), and the National Waste Audit Programme, among other initiatives.
- Awards: BPPL’s dedication was recognised with a Bronze Award in the Waste Processing & Recycling category at the Presidential Environmental Awards 2025.
Strategic Outlook and Future Expansion
Post-financial year-end, BPPL Holdings PLC has already made a significant strategic move. Its wholly-owned subsidiary, Beira Brush (Private) Limited, entered into a Business Transfer Agreement (BTA) to acquire the customer portfolio and intellectual property of Ravi Industries Limited (RIL). This acquisition is expected to increase Beira Brush’s current export volumes by over 50%, expand its market presence into Europe and the Middle East, and facilitate entry into local paint-brush manufacturing, thereby de-risking its customer concentration in North America.
Looking ahead, BPPL plans to:
- Focus on innovation and developing value-added products in the yarn segment, exploring strategic alliances.
- Evaluate opportunities for investments in circular economy projects focusing on recycling other forms of plastics such as Polypropylene, HDPE, and LDPE.
- Invest in embracing technology, upgrading enterprise resource planning systems, and developing human capital.
Corporate Governance
The Group continues to uphold the highest standards of corporate governance, adhering to the Colombo Stock Exchange (CSE) Listing Rules and best practices. The Board’s commitment to ethical conduct, strong internal compliance procedures, and transparent stakeholder engagement remains paramount.
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