JAT Holdings PLC, Sri Lankan multinational in paints, coatings, and surface solutions recorded a 7% y-o-y growth in the third quarter of the 2025/2026 financial year, a statement by the company said.
Revenue for the quarter grew to Rs. 8.1 billion, primarily led by the performance in the wood coatings, decorative paints, and EV charger manufacturing segments. Local revenue increased by 9% y-o-y, while the local paint-related revenue saw a 2% y-o-y increase, demonstrating the robustness of domestic demand despite disruptions caused by cyclone Ditwah. Q4 is expected to see a market recovery due to the pent-up demand.
In terms of exports, revenue remained stable, rising marginally by 0.5% y-o-y to Rs. 2.01 billion. The Bangladesh market saw a 16% y-o-y decline, but there was a 9% quarter-on-quarter recovery, indicating improving conditions.
Gross profit increased by 14% y-o-y to Rs. 2.95 billion, while gross profit margin rose from 34-36%, driven by a favourable product mix, pricing discipline, and efficiencies gained through
backward vertical integration. Operating profit declined 5% y-o-y, as selling and distribution and admin expenses were increased to boost sales, but the expected outcomes were not achieved due to the impact of Ditwah. Profit before tax increased by 4% however, profit after tax (PAT) fell 23% y-o-y to Rs. 774 million, primarily due to the sales loss caused and the increased taxation to adjust last year’s deferred tax liability.
A major highlight for Q3 was JAT’s acquisition of Mirotone, New Zealand’s leading industrial wood coatings company. Established in 1935, Mirotone is internationally recognized for its advanced wood finishing solutions. This acquisition provides JAT with access to Australia within the next 6 months with the relaunch and positions the company for future growth in Europe
and the Americas, significantly enhancing its R&D capabilities, distribution networks, and manufacturing scale.
The acquisition strengthens JAT’s global presence and accelerates its diversification strategy, opening new avenues for product development and market expansion.
CEO Nishal Ferdinando stated: “These results reflect the resilience of our operating model and the strength of our fundamentals. Despite short-term disruptions, demand across our core segments remained steady, and our teams continued to execute with focus. We are investing with intent, strengthening our foundations today to support the next phase of growth.”
Managing Director Aelian Gunawardene added: “Q3 reflects the strength of our core businesses and the clarity of our long-term strategy. While we continued to grow locally under challenging conditions, the acquisition of Mirotone, a 90-year-old strong wood coating brand, is a pivotal step in our global journey, significantly expanding our capabilities across R&D, manufacturing scale, and international markets. We are building JAT for sustainable, multi-market growth, not short-term gains.”
With a Fitch AA (lka) rating and ongoing strategic investments, JAT Holdings is poised for continued growth as it expands its market footprint both locally and internationally.