Sri Lankan diversified conglomerate Sunshine Holdings PLC (CSE: SUN) has recorded significant financial growth during the first six months of the 2026/27 financial year, with consolidated revenue reaching Rs. 40.2 billion for the period ended 30 September 2026.
The latest financial results represent a 24.4% increase compared with the corresponding period of the previous financial year. Meanwhile, the Group’s profit after tax (PAT) rose by 44.3% to Rs. 3.7 billion, reflecting improved performance across its Healthcare, Consumer and Agribusiness operations.
The Healthcare division accounted for the largest portion of Group revenue, contributing 49% of the total. Consumer operations represented 37%, while Agribusiness contributed the remaining 14%.
The Group’s gross profit increased by 11.7% to Rs. 11.5 billion. However, the gross profit margin declined to 28.7%, compared with 31.9% in the previous year’s corresponding period. This reduction was mainly associated with regulated pharmaceutical price adjustments and the depreciation of the rupee, which affected the Healthcare business.
Earnings before interest and taxes (EBIT) recorded a 10.5% increase, reaching Rs. 6.1 billion. Nevertheless, the EBIT margin decreased to 15.1%, compared with 17% during the first half of FY2025/26.
Higher net finance income and a lower effective tax rate helped strengthen the Group’s overall profitability. As a result, the PAT margin improved to 9.2%, up from 8% in the previous year.
The Group’s second-quarter performance also showed stronger momentum. Revenue for the quarter rose by 32% year-on-year to Rs. 21.6 billion, while profit after tax increased by 82.4% to Rs. 2.3 billion.
Commenting on the results, Sunshine Holdings PLC Group Chief Executive Officer Shyam Sathasivam said the performance demonstrated the strength of the company’s diversified business model and its ability to generate growth across all three operating sectors.
He acknowledged that regulatory pricing restrictions and currency fluctuations continued to place pressure on margins. However, the Group remained focused on improving operational efficiency and expanding its strategic investments.
He further highlighted the importance of investments in domestic pharmaceutical manufacturing, digital healthcare and export-oriented businesses in strengthening the company’s long-term competitiveness and generating sustainable value for stakeholders.
Healthcare Sector Records 13.3% Revenue Growth
The Group’s Healthcare division generated revenue of Rs. 19.6 billion during the first half of FY2026/27, representing a 13.3% year-on-year increase. Performance strengthened further in the second quarter, when revenue grew by 20.5%.
Despite the improvement in revenue, the sector’s EBIT margin declined to 11.2%, compared with 13.1% in the corresponding period of the previous financial year. The decline was primarily attributed to regulated pharmaceutical price reductions and the impact of currency depreciation on imported products.
The Pharmaceutical Agency segment experienced a 24% contraction in revenue. Factors contributing to this decline included changes to its operating model, reduced shipments from certain principals and stock shortages associated with regulatory developments.
In contrast, Medical Devices recorded revenue growth of 19.9%, while Healthguard Distribution achieved an increase of 4.1%. Healthguard Pharmacy maintained a broadly stable performance.
Lina Manufacturing, the Group’s pharmaceutical manufacturing business, recorded a particularly strong performance, with revenue increasing by 35.1%. Deliveries made against government orders supported this growth.
Sunshine Holdings also made further progress in expanding domestic pharmaceutical manufacturing capabilities through its joint venture with India’s Zydus Lifesciences Limited.
The joint venture agreement was finalised during the period, followed by an agreement with the Board of Investment of Sri Lanka (BOI) to establish a Good Manufacturing Practice (GMP)-compliant oral solid dosage pharmaceutical manufacturing facility at the Horana Export Processing Zone.
The Group subsequently expanded its digital healthcare interests. In October 2026, following the reporting period, Sunshine Healthcare Lanka Limited acquired a 21.92% stake in Digital Health (Private) Limited, the operator of the Doc990 platform.
The investment adds to the Group’s existing pharmaceutical agency, distribution, manufacturing and retail operations while strengthening its presence in digital healthcare services.
Consumer Business Drives Major Revenue Expansion
Sunshine Holdings’ Consumer division recorded the highest revenue growth among the Group’s three main sectors, with revenue increasing by 53.5% to Rs. 15 billion during the first half of FY2026/27.
The expansion was primarily supported by the consolidation of JAPC into the Group’s financial results and the recovery of its tea export operations.
Excluding JAPC, Consumer sector revenue still increased by 13%, supported by improved performance in branded tea and tea exports. The sector’s EBIT margin also strengthened to 8%, compared with 7.8% in the previous year’s corresponding period.
The Branded Tea business achieved revenue growth of 5.6%, with Watawala Thei leading the performance. Meanwhile, Zesta continued to operate in an intensely competitive premium tea market.
The Confectionery segment recorded a 2.2% increase in revenue. Growth in the gum and wafer categories helped compensate for weaker sales in the toffee and candy categories.
Tea exports also experienced a notable recovery, with revenue increasing by 25.4% during the reporting period.
The second quarter was particularly strong for the segment, with tea export revenue rising by 60.9% year-on-year. Increased business from key customers and a greater contribution from value-added tea products supported the improvement.
JAPC’s spice export operations also delivered positive results, recording a 28.6% revenue increase amid demand across its main product categories.
The consolidation of JAPC has further strengthened the Group’s export portfolio and expanded its participation in the international spice trade.
Agribusiness Revenue Reaches Rs. 5.6 Billion
The Agribusiness division, represented by Watawala Plantations PLC (CSE: WATA), generated revenue of Rs. 5.6 billion during the first half of FY2026/27, marking a 7.2% year-on-year increase.
The oil palm business was the primary contributor to the sector’s revenue growth.
Revenue from oil palm operations increased by 9.1% to Rs. 5 billion, supported by higher production from the company’s own plantations. However, growth moderated in the second quarter due to reduced availability of purchased crops and lower oil extraction rates.
The Dairy business recorded revenue of Rs. 561.1 million, reflecting a 2.9% decline compared with the same period last year. Higher selling prices helped partially offset lower milk sales volumes.
Although increased effluent management expenses continued to affect the business, its operational performance improved during the second quarter.
The sector’s EBIT margin stood at 47.8%, compared with 49.1% in the first half of FY2025/26. Higher operating expenses in the oil palm business contributed to the reduction.
During the reporting period, Sunshine Holdings increased its ownership in Watawala Plantations PLC to 77.02% through Sunshine Wilmar (Private) Limited.
In a separate development, Watawala Plantations acquired the remaining non-controlling interest in Lonach Dairy Limited, bringing the company fully under its ownership.
The latest results highlight Sunshine Holdings’ continued expansion across its diversified business portfolio, supported by growth in its Healthcare, Consumer and Agribusiness operations, alongside investments in local manufacturing, digital healthcare and export-oriented activities.