“The 2025/26 financial year marked another defining chapter in the evolution of Ambeon Capital PLC.”
Dear Stakeholders,
The 2025/26 financial year marked another defining chapter in the evolution of Ambeon Capital PLC, as we strengthened our position as a diversified investment holding company with exposure to high-potential sectors aligned to the future trajectory of the Sri Lankan and regional economies. Against a backdrop of gradual macroeconomic recovery, evolving market dynamics and continuing global uncertainty, the Group delivered one of its strongest performances in recent years, reflecting the resilience of our portfolio, the discipline of our investment strategy and the commitment of employees across the organisation.
During the year under review, Ambeon Capital recorded a significant improvement in both revenue and profitability. Consolidated revenue grew by approximately 12%, while Group profitability increased, with net profit exceeding to exceed LKR 3.2 billion compared to approximately LKR 1.6 billion recorded in the previous financial year. This exceptional performance was supported by disciplined capital allocation, improved earnings contributions across several business verticals, and the continued maturation of the Group’s strategic transformation initiatives undertaken over the past several years.
The performance was achieved despite multiple external challenges encountered during the latter part of the financial year. Adverse weather conditions arising from Cyclone Ditwah, volatility linked to geopolitical developments in the Middle East and fluctuations in market valuations of certain investments created temporary pressures within segments of the portfolio. The Group’s diversified investment structure, prudent treasury management and strong liquidity buffers enabled us to navigate these headwinds with resilience while preserving operational stability and long-term strategic focus.
As we reflect on the year under review, it is evident that the strategic decisions taken over the past decade to reposition the Group away from traditional manufacturing and towards Technology, Financial Services, Real Estate and Diversified Investments are now delivering tangible and sustainable outcomes. Our portfolio today is significantly more balanced, capital efficient and aligned to emerging growth sectors with stronger scalability, recurring earnings potential and regional relevance.
Macroeconomic Landscape: Emerging Stability Amid Global Uncertainty
Sri Lanka’s economic environment during the financial year 2025/26 reflected a continuation of the gradual stabilisation process that commenced following one of the most severe economic crises in the country’s post-independence history. Inflationary pressures remained comparatively contained, interest rates continued their downward adjustment trajectory and investor confidence across both equity and fixed income markets demonstrated notable improvement. The recovery in tourism, improved remittance inflows and progress in fiscal reforms contributed towards enhancing foreign reserve stability to restore a degree of macroeconomic predictability. Corporate sentiment also improved progressively throughout the year as businesses regained confidence to pursue medium and long-term investment decisions. While structural challenges remain and global uncertainties continue to influence emerging markets, the operating environment during the year presented improved opportunities for capital deployment, expansion and strategic repositioning.
Nevertheless, global geopolitical tensions, particularly developments connected to the Middle East, impacted market sentiment and investment valuations during the latter part of the year. Weather-related disruptions posed operational challenges within certain sectors. In this context, the Group’s ability to maintain strategic clarity while balancing growth and risk management was particularly important.
We continued to adopt a measured and forward-looking approach at Ambeon Capital PLC, with a focus on preserving liquidity, maintaining prudent gearing levels, strengthening recurring earnings streams and selectively investing in sectors where we see long-term structural value. Our diversified portfolio and disciplined governance framework enabled us to remain agile while capitalising on opportunities emerging from Sri Lanka’s evolving economic landscape.
Strategic Progress and Financial Momentum
The year under review represented another important phase in the Group’s long-term transformation journey. Over the past several years, we have steadily repositioned the Group away from legacy manufacturing exposure towards sectors with stronger scalability, recurring income generation and regional growth potential. During 2025/26, this transformation progressed further with several strategic milestones achieved across the portfolio.
One of the most significant developments during the year was the completion of our full divestment from manufacturing operations through the disposal of the remaining stake held in Dankotuwa Porcelain PLC by Ambeon Holdings PLC. This marked the conclusion of a strategic transition initiated several years ago as we deliberately reshaped the Group’s investment profile towards future-oriented sectors with greater long-term value creation potential.
Simultaneously, we continued to strengthen our investments across technology, financial services, treasury operations, diversified investments and real estate. The Group’s net asset value recorded substantial growth during the year, increasing from approximately LKR 6.4 billion to LKR 8.7 billion, representing growth of nearly 35%. Market capitalisation also improved significantly, reflecting enhanced investor confidence and stronger market recognition of the Group’s strategic direction and earnings potential.
Another noteworthy milestone during the year was the declaration of dividends by both Ambeon Capital and Ambeon Holdings PLC after a gap of several years. Ambeon Holdings declared a cash dividend amounting to approximately LKR 3.5 billion, while Ambeon Capital declared a dividend of approximately LKR 1 billion. These distributions reflect the Group’s improved financial strength, healthy cash flows and commitment towards delivering value to shareholders while maintaining sufficient capital flexibility for future investments and expansion initiatives.
We continued to manage liquidity conservatively while deploying capital selectively into opportunities capable of generating sustainable long-term returns. Our treasury operations remained disciplined, balancing capital preservation with strategic investment positioning across listed equities, government securities and medium-term instruments.
Cluster Contributions to Growth and Value Creation
The strength of Ambeon Capital PLC lies in the diversity and complementary nature of its business verticals. During the financial year under review, each major cluster contributed meaningfully towards the Group’s overall performance, reinforcing the resilience of our investment platform.
Ambeon Holdings PLC clusters, comprising Information Technology, Real Estate, Diversified Investments and Group Treasury, continue to play an important role in strengthening the Group’s overall portfolio and supporting its long-term growth ambitions. Together, these clusters provide a strong foundation for resilience, diversification and sustainable value creation, while enabling Ambeon Capital PLC to actively optimise its portfolio and pursue opportunities aligned with its strategic priorities.
Information Technology
MillenniumIT ESP continued to leverage its international footprint to diversify revenue streams and strengthen foreign currency earnings. Singapore remained the Company’s principal regional hub and largest overseas operation, generating revenue of LKR 2.09 billion during the year. MillenniumIT ESP further strengthened its channel partner ecosystem across ASEAN, the Middle East, Europe and Australia, supporting broader market penetration and creating opportunities for scalable growth.
For the financial year ended 31st March 2026, the Information Technology Cluster, spearheaded by MillenniumIT ESP, recorded revenue of LKR 16.99 billion, representing a 9% increase over the previous year. Despite continued pressure on profitability arising from vendor price fluctuations, foreign exchange volatility, supply chain disruptions and intense market competition, the Company made significant progress in improving margin quality during the year.
The Platform Cluster emerged as the largest contributor to revenue, generating LKR 6.98 billion, while the Network Cluster contributed LKR 6.51 billion. Managed Network Services generated LKR 1.56 billion.
The MillenniumIT ESP recorded EBITDA of LKR 447 million and Profit After Tax of LKR 59 million.
While profitability remained impacted by vendor pricing fluctuations, foreign exchange volatility, material shortages and intense market competition, the Company’s strategic focus on gross profit optimisation contributed to improved margin discipline. Gross margins stood at 12% during the year, reflecting the benefits of a more commercially focused operating model.
Sector-wise, Telecommunications and Banking remained the largest contributors to revenue generation, while growing demand from government institutions and commercial enterprises provided additional support to overall performance. Export revenue amounted to LKR 1.88 billion, highlighting the continued importance of international operations and the Company’s contribution to Sri Lanka’s foreign currency earnings.
Financial Services
The Group’s financial services cluster continued to demonstrate resilience and stability during the year. The cluster, comprising Stockbroking, Government Securities, Money brokering and related Financial Services operations delivered a commendable performance despite challenging market conditions and broader economic uncertainty affecting the sector. Consolidated profit from the Financial Services cluster is approximately LKR 446 million for the year under review. While profitability growth was relatively moderate compared to certain other segments, the cluster maintained strong liquidity positions, operational efficiency and disciplined risk management practices throughout the year. These businesses continue to play an important role within the Group by generating stable earnings while providing strategic optionality for future expansion.
During the latter part of the year, the Financial Services cluster was brought directly under Ambeon Capital PLC, representing a strategic realignment aimed at enhancing operational synergies, improving capital allocation efficiency and creating a more focused financial services platform for future growth. Looking ahead, we intend to further strengthen this vertical by expanding into adjacent financial services areas. We believe the financial services sector in Sri Lanka continues to offer meaningful long-term opportunities as the economy stabilises, capital markets deepen, and investor participation increases.
Treasury and Diversified Investments
The Group Treasury continued to perform strongly during the year, benefiting from the disciplined execution of our centralised treasury strategy. Strategic positioning across short-term and medium-term investments generated solid returns while preserving liquidity and balance sheet flexibility. Our investments within the banking sector also continued to generate encouraging returns through both capital appreciation and dividend flows.
The Group maintained significant positions in DFCC Bank PLC and Seylan Bank PLC, both of which contributed positively towards overall investment performance during the year. Over the years, our treasury operations have developed a strong capability in identifying and managing investment opportunities across listed equities, government securities and strategic financial instruments. This capability has become an increasingly important contributor towards the Group’s profitability and financial resilience.
Real Estate
Recovery in Sri Lanka’s tourism industry continued to strengthen the outlook for the Company’s leisure-related assets and future hospitality developments, supported by increasing international visitor arrivals, renewed airline connectivity and improving occupancy levels. The Company operates across five strategic verticals: Real Estate, Mixed Development/Leisure, Plantations, Warehousing and Diversified Investments while advancing its flagship Kosgoda development. Envisioned as an exclusive coastal lifestyle destination, the project will combine premium residences, luxury villas, resort-style amenities, clubhouse facilities and thoughtfully integrated infrastructure to deliver a distinctive beachfront living experience and create long-term investment value.
Revenue increased from LKR 50 million to LKR 74 million, representing a 47.84% increase over the previous year, supported by stronger asset utilisation and improved operational alignment. Gross profit rose from LKR 47 million to LKR 73 million, with the gross profit margin improving to 98.13% from 94.05%, reflecting enhanced cost discipline and operational efficiencies. Operating profit increased from LKR 196 million to LKR 507 million, while profit after tax grew from LKR 259 million to LKR 435 million, supported by fair value gains on investment properties. Total assets increased to LKR 3.6 billion as at 31 March 2026, driven primarily by investment property appreciation and portfolio expansion. Return on assets improved to 12.06% from 7.66%, while return on equity strengthened to 13.87%, reflecting improved profitability and more efficient capital utilisation. Liquidity remained healthy throughout the year, supported by prudent financial management and disciplined capital allocation, providing the Company with the flexibility to pursue future strategic investments while maintaining a resilient balance sheet.
Looking ahead, Ambeon Capital PLC remains focused on strengthening its real estate portfolio and unlocking value through strategic opportunities in the sector. In line with this strategy, the acquisition of My Land Developments PLC represents an important step in broadening Ambeon Capital PLC’s development platform and enhancing its exposure to high-potential real estate opportunities. The acquisition is expected to complement the Group’s existing portfolio, create further avenues for sustainable growth and value creation, and strengthen its ability to capitalise on the continued recovery and long-term potential of Sri Lanka’s real estate sector.
Strategic Expansion and Future Growth Platforms
During the year under review, the Group also took important steps towards broadening the composition of its investment portfolio. One of the most notable strategic developments was our move towards establishing a presence within the Fast-Moving Consumer Goods sector. For several years, we have sought to build a more balanced portfolio combining high-growth sectors with businesses capable of generating stable and recurring cash flows. In line with this strategy, we moved towards the acquisition of the Harischandra Mills PLC Group of Companies, a brand with a longstanding heritage and strong market presence in Sri Lanka. The acquisition was completed on 15th May 2026. We are particularly excited about the opportunities this acquisition presents, not only from a commercial standpoint but also in terms of long-term brand stewardship and operational synergies. We believe the integration of Harischandra Mills PLC into the broader Ambeon ecosystem will create meaningful opportunities to enhance both top-line growth and operational performance while preserving the legacy and market trust associated with the brand.
Our investment into Taprobane Minerals and related exposure to Capital Metals represents another strategic long-term positioning initiative. While certain regulatory and licensing processes relating to mineral exploration remain ongoing, we remain optimistic regarding the future of Sri Lanka’s mineral sector and the potential for policy reforms to create a more structured and investor-friendly framework for responsible resource development.
Building Organisational Capability
As a diversified investment group operating across multiple sectors, we recognise that long-term success depends not only on financial capital, but equally on human capital, institutional capability and organisational adaptability. Across the Group, our subsidiary companies continued to invest in employee development, training, mentoring and leadership progression throughout the year. We encourage cross-industry exposure and provide opportunities for talent mobility across business verticals, enabling our people to broaden their expertise and contribute more dynamically within the organisation.
Operationally, we also continued to enhance our internal systems and digital infrastructure. Beyond incremental ERP enhancements, we have commenced exploring the integration of agentic AI capabilities into selected enterprise systems and operational processes. We believe AI will become increasingly central to enterprise efficiency, decision-making and competitiveness across industries, and we intend to position the Group proactively within this evolving technological landscape.
Outlook
As we look ahead, we remain highly confident regarding the future direction of both Ambeon Capital PLC and Ambeon Holdings PLC. Over the past several years, we have established a diversified and strategically balanced portfolio with exposure to sectors that possess strong long-term growth potential and resilience across economic cycles. Our priorities moving forward will include accelerating profitability growth within the technology cluster, progressing key real estate developments, expanding the financial services vertical into adjacent sectors, strengthening treasury performance and integrating our new FMCG investments effectively into the broader Group structure.
We remain particularly optimistic regarding the future of MIT ESP and the opportunities emerging from AI, enterprise digital transformation, cybersecurity and regional technology demand. Similarly, we believe our real estate and diversified investment portfolios are well positioned to benefit from improving macroeconomic conditions and long-term asset appreciation trends.
While external uncertainties will inevitably continue to influence markets and operating environments, we believe the Group today is significantly stronger, more agile and better positioned than at any point in recent years. Our balance sheet remains healthy, our investment portfolio is diversified, and our leadership teams across the Group remain focused on disciplined execution and sustainable long-term value creation.
Acknowledgement
I would like to place on record my sincere appreciation to the Boards of Directors, management teams and employees across Ambeon Capital PLC, Ambeon Holdings PLC and all subsidiary companies for their dedication and commitment throughout the year. The progress achieved during the financial year was made possible through your collective effort, professionalism and unwavering belief in the Group’s long-term vision.
I also extend my gratitude to our shareholders, business partners, customers, regulators and other stakeholders for the continued trust and confidence placed in the Group. Your support remains fundamental to our progress and future ambitions.
As we continue to evolve into a more agile, future-focused and diversified investment group, we remain committed to delivering sustainable value responsibly, strengthening the businesses we invest in, and contributing meaningfully towards the country’s long-term economic progress.