Tuesday Sep 01, 2026
Tuesday Sep 01, 2026
Tuesday, 1 September 2026 03:03 - - {{hitsCtrl.values.hits}}
Corporate earnings of companies listed on the Colombo Stock Exchange (CSE) rose 10% year-on-year (YoY) to Rs. 168.3 billion in the second quarter of 2026/first quarter of FY27, led by a strong performance from the banking sector, according to Softlogic Stockbrokers (SSB) Research.
Despite the YoY improvement, earnings fell 10% quarter-on-quarter (QoQ) from Rs. 186.6 billion in 1Q2026/4QFY26, the latest Corporate Earnings Review by SSB showed. The comparable earnings figure for 2Q2025/1QFY26 was Rs. 152.3 billion.
The latest quarterly performance lifted cumulative corporate earnings for the first half of 2026 to Rs. 354.9 billion, an 8% increase YoY. For comparison, full-year corporate earnings amounted to Rs. 685.3 billion in 2025 and Rs. 672.4 billion in 2024.
Banks remained the dominant earnings contributor, generating Rs. 62.37 billion in 2Q2026/1QFY27, up 28% YoY and 32% QoQ. The sector accounted for 37.1% of total quarterly market earnings.
Food, Beverage and Tobacco was the second-largest contributor with earnings of Rs. 34.78 billion, broadly unchanged YoY but up 122% QoQ, accounting for 20.7% of market earnings.
Diversified Financials followed with Rs. 21.58 billion, down 35% YoY and 39% QoQ, and contributed 12.8%. Collectively, Banks, Food, Beverage and Tobacco, and Diversified Financials accounted for 71% of total market earnings during the quarter.
Telecommunication Services recorded one of the stronger performances, with earnings rising 86% YoY to Rs. 13.65 billion, contributing 8.1% to the quarterly total. Capital Goods earnings surged 233% YoY to Rs. 9.96 billion, although they fell 69% QoQ, while Materials earnings increased 44% YoY to Rs. 8.66 billion.
Among other sectors, Retailing earnings more than doubled, rising 127% YoY to Rs. 4.5 billion, while Real Estate earnings edged up 2% to Rs. 4.52 billion. Insurance earnings declined 27% to Rs. 3.37 billion, while Energy earnings fell 53% to Rs. 949 million.
On a trailing 12-month (TTM) basis, total corporate earnings stood at Rs. 707.7 billion, down 9% from Rs. 778.2 billion a year earlier. Banks were again the largest contributor, accounting for 30% of TTM market earnings, followed by Diversified Financials at 17.7% and Food, Beverage and Tobacco at 16.2%. The three sectors collectively contributed 64% of TTM earnings.
At company level, Commercial Bank recorded the highest earnings for 2Q2026/1QFY27 at Rs. 17.21 billion, an 8% YoY increase. Hatton National Bank followed with Rs. 11.77 billion, broadly unchanged from a year earlier, while Sampath Bank posted Rs. 11.03 billion, up 65%. Nations Trust Bank recorded Rs. 10.99 billion, a 133% YoY increase.
Dialog rounded out the top five with earnings of Rs. 10.11 billion, double the Rs. 5.07 billion recorded a year earlier. Ceylon Tobacco Company earned Rs. 7.69 billion, up 4%, while LOLC Holdings’ earnings increased 34% to Rs. 6.18 billion. LOLC Finance and Melstacorp posted earnings of Rs. 5.4 billion and Rs. 5.37 billion, respectively.
In contrast, Carson Cumberbatch’s earnings fell 26% YoY to Rs. 4.9 billion, while Bukit Darah recorded a 25% decline to Rs. 4.39 billion.
SSB said the top 10 earning counters accounted for about 56% of total corporate earnings during the quarter, with the YoY gains recorded by the majority of the leading companies contributing to the overall market earnings growth. SSB noted that its 2Q2026/1QFY27 corporate earnings calculation covers equity holders’ profits of around 273 counters that had released results for the quarter. It also cautioned that the earnings had not been adjusted for one-off gains, which may not recur in forthcoming quarters.
