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Marks major turnaround as platform strategy accelerates
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Chairman and CEO |
Kapruka Holdings recently reported strong results for the quarter ended 31 December 2025, underscoring the growing impact of the Group’s platform-led strategy and continued execution discipline.
The Group delivered 21% year-on-year (YoY) revenue growth, while gross profit increased 44%, reflecting improved operational efficiencies, disciplined cost management, and a more favourable sales mix. Most notably, overall operating performance improved 138% YoY, marking a major turnaround in the Group’s operational trajectory.
In tandem with this, KPHL shares have rallied strongly on the Colombo Stock Exchange, rising by more than 130% over the past year, signalling renewed investor confidence in the ompany’s strategy.
These results represent three consecutive quarters of strong operating performance improvement, highlighting the scalability of Kapruka’s model and the compounding benefits of its platform transformation.
A key driver of this performance is Kapruka Partner Central, which continues to power the company’s evolution from a traditional inventory-led e-commerce business into a scalable, asset-light marketplace. By onboarding a growing network of third-party sellers and brands, Kapruka is expanding into niche product categories without tying up capital in inventory, strengthening margins and returns while delivering a broader “world of choices” to customers.
Building on this foundation, Kapruka has also expanded into services, using its platform to connect customers with verified providers for needs such as IT support and other everyday requirements. This Services Platform opens a new addressable market, allowing the Group to monetise its existing customer base in new ways while leveraging its technology, brand trust, and logistics infrastructure.
In parallel, the Cross Border vertical has become a mature USD-generating engine for the Group. As an e-distributor for Sri Lankan brands on leading global marketplaces, Kapruka manages logistics, compliance, and listings end-to-end, helping local brands become global exporters while strengthening the Group’s hard-currency revenue streams.
Chairman and CEO Dulith Herath said: “Delivering a 138% improvement in operating performance this quarter represents a major turnaround for Kapruka. Our platform strategy – driven by Partner Central, our Services Platform, and Cross Border – is building a more scalable and capital-efficient business, creating better outcomes for customers, partner brands, and shareholders.”
Kapruka said it entered 2026 with a stronger balance sheet, a more diversified revenue mix, and an expanding ecosystem of partners, remaining focused on building Sri Lanka’s most trusted digital commerce ecosystem with one platform and endless possibilities.
