COLOMBO, Sri Lanka – Hunas Holdings PLC (CSE: HUNAS), a diversified Sri Lankan conglomerate, has released its Annual Report for the financial year ended 31st March 2026. The report, dated 4th September 2026, details the Group’s financial performance, strategic recalibrations, and commitment to sustainable value creation amidst a challenging global and domestic operating environment.
The Group’s Chairman, Mr. W.S.L.A.D.R. Samarasinghe, emphasized a pivotal year marked by “Repositioned with Purpose, Poised for Growth,” signaling a clear strategic direction for the future.
Financial Performance: Strategic Disposals Influence Top-Line, Profitability Strengthens
For FY2025/26, Hunas Holdings PLC reported a revenue of LKR 873.6 million, a notable decrease from LKR 1,334.7 million in the previous year. This decline was primarily attributed to the strategic disposal of the Rainforest Tea Factory during FY2024/25, which significantly impacted the comparative revenue base.
Despite the top-line contraction, the Group demonstrated strengthened profitability:
- Gross Profit: Increased by 15% to LKR 442.5 million (FY2024/25: LKR 385.8 million), reflecting successful efforts in improving earnings quality and focusing on higher-margin operations.
- Group Loss Before Tax: Stood at LKR 5.1 million (FY2024/25: Profit of LKR 348.6 million), with the prior year’s figure including a substantial non-recurring gain of LKR 565 million from the Rainforest Tea Factory disposal. On a normalised, like-for-like basis, the Group’s underlying performance showed improvement.
- Loss Attributable to Equity Holders: LKR 33.7 million (FY2024/25: Profit of LKR 214.5 million).
- Mini Hydro Power Sector: Emerged as the largest revenue contributor, generating LKR 441.9 million (51% of total revenue) and accounting for approximately 82% of the Group’s gross profit, underscoring its stable and profitable income stream.
- Plantation Sector: Witnessed a significant turnaround, moving from a gross loss of LKR 53.6 million in FY2024/25 to a gross profit of LKR 2.8 million in FY2025/26, driven by operational efficiency and cost optimization.
- Leisure Sector: Recorded LKR 112.2 million in revenue, impacted by Cyclone Ditwah and global geopolitical developments, but management remains confident in its long-term growth prospects.
Strategic Shifts: Hospitality as the Growth Engine
The Annual Report outlines a decisive strategic repositioning, with hospitality identified as the primary growth driver for the coming years. This shift is supported by:
- Consolidated Commercial Functions: Establishment of central Sales, Digital Marketing, and Central Reservations divisions to streamline operations and enhance revenue opportunities across its four hospitality properties: Hunas Falls Hotel, Boulder Gardens, Rainforest Edge Hotel, and Aigburth Villa.
- Hunas Villas Project: Advanced as an initial phase of hospitality expansion, ahead of a potential larger-scale renovation of Hunas Falls Hotel.
- Building Management Capability: Continuous investment in specialized hospitality management expertise and the rollout of an Enterprise Resource Planning (ERP) system to support a larger portfolio.
In other sectors, the Group’s strategy includes a “measured transition” for the Plantation sector, focusing on productivity and value-added tea, while gradually redirecting capital towards hospitality. The Power sector will prioritize optimizing existing hydro assets and diversifying into solar and wind generation, especially after navigating challenges like the Weswin Power Gahala landslide during the year. Logistics and Marine Services continue to be developed as an emerging growth vertical, aiming for synergies with existing businesses.
Commitment to Sustainability and Governance
Hunas Holdings PLC has significantly strengthened its commitment to environmental, social, and governance (ESG) principles. The Group implemented a new ESG Strategy comprising seven strategic pillars and 29 sustainability elements.
- SLFRS S1 and S2 Compliance: The report includes the Group’s first mandatory application of SLFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information) and SLFRS S2 (Climate-related Disclosures), with transitional reliefs applied.
- Sustainability Division: A dedicated Sustainability division was formally established, tasked with biodiversity measurement, environmental record-keeping, and conservation actions, particularly for properties near ecologically sensitive areas like the Sinharaja Rainforest.
- ESG Metrics: The report provides a comprehensive ESG KPI update, establishing FY2025/26 as a baseline for future performance monitoring across areas such as GHG emissions, energy and water consumption, waste generation, workforce metrics, health and safety, and community investment.
Outlook: Cautious Optimism and Resilient Growth
Acknowledging the dynamic operating environment, including lingering global economic uncertainty, geopolitical tensions, and local disruptions like Cyclone Ditwah, the Group maintains a cautious yet optimistic outlook. The focus for FY2026/27 will be on disciplined capital deployment, portfolio optimization, operational integration, and developing new revenue streams, with hospitality at the forefront.
Hunas Holdings PLC reiterates its commitment to building a more agile, diversified, and future-ready enterprise that delivers enduring value to all stakeholders while contributing to Sri Lanka’s economic development.
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