Hemas Holdings PLC today announced record earnings for both the fourth quarter (Q4) and full financial year FY26, marking a historic milestone for the Group. Group earnings reached Rs. 3.03 Bn in Q4, representing 17.6% year-on-year (YoY) growth, and Rs. 8.92 Bn for the full year, up 10.7% YoY.
Revenue for FY26 grew 8.0% to Rs. 127.4 Bn, and all three key business units recorded revenue growth, both annually and quarterly. Gross profit margin expanded by 110 basis points, reflecting stronger commercial execution. Hemas elected to reinvest that gain, and incrementally more, into the operating platform required to sustain the next phase of growth, including manpower capabilities, digital infrastructure, and an expanding healthcare network. As a result, EBITDA and EBIT margins compressed by 40 and 50 basis points respectively, which is the expected consequence of running operating expenditure ahead of revenue during an accelerating investment cycle. However, finance cost management more than offset this margin compression at the net profit level, as net profit margin and earnings per share expanded, returning year-on-year earnings margin growth to shareholders.
The modest compression in ROE reflects the accumulation of retained earnings, as the Group continues to self-fund its investment pipeline through internally generated cash flows. This deliberate approach reflects both the quality of earnings and the resilience of the balance sheet.
| Quarterly Performance | Annual Performance | |||
| Q4 FY26 | YoY | FY26 | YoY | |
| Revenue | Rs. 31,540 Mn | 3.9% | Rs. 127,362 Mn | 8.0% |
| Consumer Brands | Rs. 10,545 Mn | 4.5% | Rs. 47,027 Mn | 2.2% |
| Healthcare | Rs. 20,409 Mn | 3.4% | Rs. 78,009 Mn | 11.5% |
| Mobility | Rs. 563 Mn | 15.6% | Rs. 2,293 Mn | 17.8% |
| GP | Rs. 10,889 Mn | 16.9% | Rs. 41,428 Mn | 11.7% |
| GP margin | 34.5% | 3.8% | 32.5% | 1.1% |
| EBITDA | Rs 4,915 Mn | 11.8% | Rs 16,449 Mn | 4.7% |
| EBITDA margin | 15.6% | 1.1% | 12.9% | (0.4%) |
| EBIT | Rs 4,337 Mn | 13.5% | Rs. 14,145 Mn | 3.2% |
| EBIT margin | 13.8% | 1.2% | 11.1% | (0.5%) |
| Net finance cost | Rs. 172 Mn | (25.9%) | Rs. 421 Mn | (56.9%) |
| Earnings | Rs. 3,030 Mn | 17.6% | Rs. 8,921 Mn | 10.7% |
| Earnings margin | 9.6% | 1.1% | 7.0% | 0.2% |
Consumer Brands
Consumer Brands revenue grew 2.2% YoY while earnings grew stronger at 6.5% YoY in FY26, underpinned by volume growth across all business units signalling recovering consumer demand.
Home and Personal Care-Sri Lanka recorded volume growth of 4.2% in FY26, alongside a price degrowth of 1.3%. Personal Wash and Personal Care volumes expanded by 6.8% and 7.7%, respectively. Beauty, a strategic focus, recorded the fastest volume growth at 12.2%. Personal Care and Beauty remain the primary focus of the long-term growth strategy, while Home Care continues to be a conscious and considered element of the portfolio.
Home and Personal Care-Bangladesh recorded moderate volume growth and delivered value growth of 14.5% YoY in FY26. The business transitioned from breakeven in FY25 to profitability in FY26, while also gaining market share in the value-added hair oil category, increasing from 16.0% at end March 2025 to 17.7% at end December 2025.
Atlas continues to lead the market and recorded an overall volume growth of 6.1% as of March 2026. Industry price corrections led to price declines in FY26, while the newer portfolio verticals, Back to School and EduToys, recorded significant volume growth.
Healthcare
Healthcare revenue grew 11.5% YoY, and earnings grew 14.2% YoY in FY26.
In pharmaceutical distribution, Hemas continues to lead the market and recorded stable revenue growth in FY26. Operational efficiency remains a key lever, with distribution reengineering and digitalisation expected to drive margin improvement.
Hemas’ pharmaceutical manufacturing arm, Morison, delivered a strong performance for the twelve months ending March 2026, achieving volume growth of 18.6% in pharmaceutical manufacturing. While holding the second position in volume market share, Morison is now ranked 23rd by value in the total pharmaceutical market, representing an ascent of 20 places over four years, marking significant strides in market positioning. Morison’s Empagliflozin brand, EmpaMor, has grown to command a market-leading position by volume, while generating annual savings of over Rs. 300 Mn for patients. The newer cardiology introductions, CilniMor, BisoMor, and RivoMor, are also gaining meaningful traction across the market.
Hospitals saw revenue growth of 24% YoY in FY26, driven by volume growth across all services. The expansion at Wattala marked a significant milestone in FY26 with the opening of HealthPlus, home to the first multi-disciplinary liver unit in Sri Lanka’s private sector, alongside a Cosmetic Centre, a fully equipped Emergency Treatment Unit, a range of other specialised centres and a Catheterisation Lab entering the cardiac space in Sri Lanka, benchmarking global best practices to provide access to high-end cardiac services.
Mobility
The Mobility Sector delivered solid performance during FY26, recording 17.8% YoY revenue growth and 6.1% YoY earnings growth. The maritime segment achieved exceptional results while the aviation segment demonstrated resilience against a more challenging operating environment. Under maritime, Evergreen shipping saw market share strengthen in FY26 amidst industry container throughput growth of 9%, reflecting both the depth of Hemas’ principal relationships and Colombo’s growing prominence as a regional transshipment hub. In aviation, Emirates maintained its air cargo market leadership, while ranking second in passenger market share across operated routes.
Strategy and Outlook
Digitalisation continues to advance at pace, locally, globally, and across the Group, creating new efficiencies and sharper insights. As part of the Group’s digital transformation agenda, significant investments are being directed toward modernising technology infrastructure, including ERP systems, HR information systems, hospital management platforms, salesforce automation, cyber security, and a data lake with agentic and generative AI-based solutions. Alongside this, the Group continues to build the skills and capabilities its workforce will need to succeed in an increasingly digital and AI-driven environment.
On the business front, each Hemas entity is well-positioned to pursue focused, deliberate growth, and Hemas is entering FY27 ready to grow. Over USD 100 Mn is earmarked for investments in the next four years, underpinned by the Long Range Plan anchored by an FY30 vision currently being finalised, and defined by two strategic priorities. The first is internationalisation, thereby reducing single-market dependency. International revenue currently stands at 3%; the planned FY27 acquisition is expected to lift this to 10%. The second priority is growth through adjacencies, by deliberately expanding into related categories that complement and strengthen the core portfolio.
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