Thursday Jun 25, 2026
Thursday Jun 25, 2026
Thursday, 25 June 2026 05:23 - - {{hitsCtrl.values.hits}}
Teejay Lanka Chairman Ajit Gunewardene (left) and CEO Pubudu De Silva
The Teejay Group recorded revenue of Rs. 60.04 billion during the period, reflecting a 10% year-on-year (YoY) decline, primarily due to continued softness in global textile demand. This performance was largely impacted by reciprocal tariffs imposed by the United States, intensified pricing pressures across key markets, and the resulting decline in volumes, all of which collectively weighed on topline growth.
Group Gross Profit declined by 36% YoY to Rs. 5.02 billion, mainly attributable to lower production volumes, underutilization of plant capacity, sustained pricing pressures, and an unfavorable product mix. Together, these factors adversely affected margin performance amid a challenging operating environment.
The Group reported a Profit After Tax (PAT) of Rs. 54.7 million, representing a 98% YoY decline. This was primarily driven by higher rupee-denominated costs and non-recurring items, provision for doubtful debts, and restructuring costs associated with right-sizing initiatives.
Teejay Group Chairman Ajit Gunewardene said, “The year was marked by persistent global demand softness and pricing pressures, which impacted results. Despite this, we focused on operational efficiency, cost discipline, and strengthening our financial resilience. These actions position the Group to navigate ongoing uncertainty while remaining committed to long-term value creation for our shareholders.”
Despite these near-term challenges, the Teejay Group continues to maintain a strong financial position supported by disciplined working capital management and a robust liquidity base. As at 31 March 2026, cash and cash equivalents stood at Rs. 8.3 billion, while the Group’s net asset base increased by 3% YoY to Rs. 32.4 billion, reinforcing the resilience of its balance sheet.
Further reflecting the Group’s focus on value preservation, Net Asset Value (NAV) per share improved from Rs. 43.70 to Rs. 44.91 YoY, underscoring its continued commitment to safeguarding shareholder value amid a demanding operating environment.
The Teejay Group owns manufacturing facilities in Sri Lanka and India, along with a state-of-the-art printing facility in Sri Lanka. An ISO 9001:2015, ISO 14001:2015 and OHSAS 18001:2007 compliant company and the first in the industry to develop green fabric, Teejay Lanka was also the first textile manufacturer in Sri Lanka to receive membership of the US Cotton Trust Protocol.
Teejay is a publicly quoted company with 40% public ownership and the backing of Sri Lanka’s largest apparel exporter Brandix Lanka which has a 32% stake in the Company. Pacific Textiles of Hong Kong, whose key shareholder is the Tokyo Stock Exchange listed Toray Industries Inc., owns 27% of Teejay Lanka.
