# VALLIBEL ONE PLC Financial Summary

Canonical URL: https://pal.lk/updates/vone-financial-summary
Symbol: VONE.N0000
Company: VALLIBEL ONE PLC
Sector: Financial Services
Published: 2026-08-15T22:00:54Z
Last updated: 2026-08-15T22:00:53Z

# Vallibel One PLC Financial Summary and Investment Analysis

## Executive Overview

Vallibel One PLC is a diversified investment holding company with exposure to financial services, lifestyle and construction products, aluminium, healthcare, packaging, consumer goods, leisure, logistics, insurance and industrial materials. Its principal subsidiaries include Royal Ceramics Lanka PLC, L B Finance PLC, Greener Water Limited, Delmege Limited and Vallibel One Properties Limited, with The Fortress Resorts PLC as an associate.

**Periods covered:** Q4 2023 through Q2 2026, including the audited 12 months ended 2026-03-31 and the provisional quarter ended 2026-06-30.

The Group entered a substantially stronger earnings phase during 2025-2026. Calendar-year revenue increased from **LKR 117.83 Bn in CY2024 to LKR 137.63 Bn in CY2025 (+16.8%)**, while net profit increased **24.1% to LKR 18.43 Bn**. For the audited 12 months ended 2026-03-31, revenue reached **LKR 149.35 Bn (+22%)** and net profit **LKR 20.87 Bn (+30%)**.

The main counterweight is rapidly increasing leverage. Total debt rose **133% to LKR 180.50 Bn** during the year and the reported debt/equity ratio increased from **49.03% to 99.77%**, largely alongside aggressive expansion of the Finance sector. By 2026-06-30, estimated debt based on due-to-banks plus interest-bearing borrowings had increased further to approximately **LKR 210.45 Bn**.

## Financial Performance

### Revenue and Profitability Trends

**LKR Bn**

| Period      |   Revenue | Gross Profit | Net Profit | GP Margin | NP Margin |
| ----------- | --------: | -----------: | ---------: | --------: | --------: |
| Q4 2023     |     36.28 |        16.60 |       5.82 |     45.8% |     16.0% |
| Q1 2024     |     27.78 |        12.60 |       4.74 |     45.3% |     17.1% |
| Q2 2024     |     25.79 |        11.48 |       2.56 |     44.5% |      9.9% |
| Q3 2024     |     30.43 |        13.73 |       3.72 |     45.1% |     12.2% |
| Q4 2024     |     33.82 |        14.19 |       3.82 |     42.0% |     11.3% |
| Q1 2025     |     32.72 |        14.33 |       5.92 |     43.8% |     18.1% |
| Q2 2025     |     31.06 |        13.86 |       3.15 |     44.6% |     10.2% |
| Q3 2025     |     35.07 |        15.91 |       4.37 |     45.4% |     12.5% |
| Q4 2025     |     38.79 |        17.51 |       4.98 |     45.1% |     12.8% |
| Q1 2026     |     44.54 |        20.46 |       8.37 |     45.9% |     18.8% |
| **Q2 2026** | **40.67** |    **18.46** |   **4.73** | **45.4%** | **11.6%** |

Q2 2026 remained exceptionally strong YoY: **revenue +31.0%, gross profit +33.2% and net profit +50.0%**. Sequentially, however, revenue fell **8.7%** and net profit **43.4%** from the unusually strong Q1 2026.

The revenue mix changed significantly: Q2 2026 interest income increased **59% YoY to LKR 20.48 Bn**, while revenue from contracts increased only **11% to LKR 20.20 Bn**. Finance therefore represented roughly half of consolidated quarterly revenue.

For the audited 12 months ended 2026-03-31, EBITDA increased **22% to LKR 42.21 Bn**, operating profit **24% to LKR 38.26 Bn**, PBT **24% to LKR 30.58 Bn** and parent-attributable profit **12% to LKR 13.17 Bn**. Gross margin improved from **43.8% to 45.3%**, while net margin improved from **13.1% to 14.0%**.

### Segment Momentum

* **Finance:** Q2 2026 revenue **LKR 20.48 Bn, +59%**, PAT **LKR 3.83 Bn, +41%**. For the 12 months ended 2026-03-31, sector PAT was **LKR 14.04 Bn**, making it the dominant earnings contributor.
* **Lifestyle:** Q2 revenue **+15% to LKR 11.81 Bn**, but PAT declined slightly to **LKR 807 Mn**. Annual performance benefited strongly from recovering construction activity.
* **Aluminium:** Q2 revenue **+7%** and PAT increased from **LKR 49 Mn to LKR 131 Mn**.
* **Healthcare:** Q2 revenue **+8%**, but PAT fell **17% to LKR 129 Mn**, reflecting pricing, procurement and FX pressures.
* **Packaging:** Q2 revenue **+10%**, while PAT declined **7% to LKR 151 Mn** as margin pressure persisted.
* **Consumer Goods:** Q2 revenue increased **36% to LKR 2.16 Bn**, with the business remaining profitable after its recent turnaround.

## Balance Sheet Analysis

| LKR Bn             | 2025-03-31 | 2026-03-31 | 2026-06-30 |
| ------------------ | ---------: | ---------: | ---------: |
| Total assets       |     406.77 |     591.52 | **627.84** |
| Loans and advances |     199.27 |     333.00 | **361.31** |
| Cash               |      15.32 |      30.22 |  **27.38** |
| Total liabilities  |     248.50 |     410.60 | **445.19** |
| Total equity       |     158.27 |     180.92 | **182.65** |
| Parent equity      |     108.94 |     123.86 | **124.76** |

Asset growth has been exceptionally rapid: **+45%** during the 12 months ended 2026-03-31 and another **6.1% in Q2 2026**. Loans and advances increased another **8.5% during Q2**, demonstrating continued Finance-sector expansion.

Reported current and quick ratios at 2026-03-31 were **1.26x and 1.12x** respectively. However, leverage increased materially: debt/equity rose to **99.77%** and the equity/assets ratio declined from **26.78% to 20.94%**.

## Cash Flow Analysis

| LKR Bn              | 12M ended 2026-03-31 |    Q2 2026 |
| ------------------- | -------------------: | ---------: |
| Operating cash flow |           **-10.73** | **-21.20** |
| Investing cash flow |            **-7.66** |  **-2.07** |
| Financing cash flow |           **+34.46** | **+22.91** |
| PPE purchases       |                 5.76 |       1.27 |

Negative operating cash flow mainly reflects rapid loan-book expansion rather than simply weak underlying profitability. During Q2 2026 alone, loans and advances consumed **LKR 29.22 Bn** of cash, while funding was supported by increased customer deposits and borrowings.

Conventional free cash flow is therefore strongly negative, but this metric requires caution because lending is an operating activity for the Group's finance businesses.

The company maintained a **LKR 3.00 DPS**, distributing approximately **LKR 3.42 Bn**. Company-level dividend income of **LKR 4.14 Bn** exceeded dividends paid, although the dividend represented roughly 81% of standalone company profit.

## Key Financial Ratios and Growth Indicators

| Indicator      | 2025-03-31 |     2026-03-31 |
| -------------- | ---------: | -------------: |
| ROA            |      4.25% |      **4.18%** |
| ROE            |     10.12% |     **11.54%** |
| Interest cover |     12.52x |     **15.16x** |
| Debt/equity    |     49.03% |     **99.77%** |
| EPS            |  LKR 10.34 |  **LKR 11.57** |
| NAV/share      |  LKR 93.62 | **LKR 108.84** |
| Current ratio  |      1.26x |      **1.26x** |

Revenue and PAT grew at approximately **10.5% and 9.4% two-year CAGRs** respectively from the comparable 2024 base.

Revenue per employee improved from **LKR 12.35 Mn to LKR 14.56 Mn**, while employee numbers increased modestly from 9,939 to 10,254, indicating improved productivity.

At the latest included price of **LKR 92.00 on 2026-08-14**, trailing P/E is approximately **8.0x** and price/NAV approximately **0.84x** using 2026-06-30 NAV of LKR 109.55.

## Economic and Market Context

Management described a progressively stabilising Sri Lankan operating environment with improving interest-rate conditions, recovering consumer demand, renewed tourism activity, construction recovery and reopening of vehicle imports. These conditions particularly support Finance, Lifestyle, Aluminium, Consumer Goods and Leisure.

Remaining pressures include imported input costs, logistics, affordability constraints, exchange-rate volatility, taxation and regulatory changes, cybersecurity requirements and competitive pricing.

## Future Potential and Outlook

Major growth platforms include:

* L B Finance's acquisition of **65.60% of Associated Motor Finance Company PLC for LKR 3.72 Bn**, expanding mobility-linked finance. Associated Motor Finance Company PLC is required to be amalgamated with L B Finance PLC by **2027-03-31**.
* Planned **Philippines expansion**, initially centred on microfinance.
* Further finance opportunities in affordable housing, SMEs, electric vehicles and energy-efficient financing.
* Packaging expansion through **Kenya operations** and additional corrugator capacity.
* Construction recovery supporting tiles, sanitaryware, aluminium and integrated lifestyle products.
* Tourism recovery and refurbishment of The Fortress Resort.
* Expansion of Delmege Forsyth Energy's Shell lubricants distribution platform.
* Group-wide digitalisation, operational automation and Business Excellence initiatives.

The **Greener Water integrated hotel/resort project remains delayed**, with its timetable under review because of market conditions and infrastructure gaps.

## Risks and Challenges

Principal investment-monitoring risks are **rapid leverage growth**, dependence on the Finance sector, credit-loss estimation on the expanding LKR 361 Bn loan book, interest-rate sensitivity, funding and liquidity conditions, FX exposure, input-cost inflation, construction-cycle sensitivity, and execution risk from acquisitions and regional expansion.

The audited statements received an **unmodified audit opinion**. Key audit matters were revenue recognition, the **LKR 36.3 Bn inventory balance including LKR 2.2 Bn slow-moving provisions**, and expected-credit-loss assumptions on the large financial-services loan portfolio. Q2 2026 statements are provisional and unaudited.

## Shareholder and Corporate Information

At 2026-06-30, **K. A. D. D. Perera held 63.478%**, Employees' Provident Fund **9.346%**, Vallibel Investments (Private) Limited **8.464%**, and Vallibel Leisure (Private) Limited **8.461%**. Public holding was **19.5024%**, with float-adjusted market capitalisation of **LKR 21.37 Bn**.

The share closed at **LKR 96.20 on 2026-06-30** and **LKR 92.00 on 2026-08-14**. Across the latest 90 trading sessions it ranged from **LKR 89.60-104.00**, producing a **-0.54% price return**, while foreign ownership increased from zero to approximately **0.14%**.

## Investment Decision Indicators

**Strengths:** strong revenue and earnings acceleration; resilient ~45% gross margins; improving ROE and interest cover; Finance-sector momentum; construction and tourism recovery exposure; successful Consumer Goods turnaround; diversified operating portfolio; NAV/share continuing to rise.

**Weaknesses:** debt has expanded substantially faster than equity; operating cash flow is deeply negative during rapid loan-book expansion; earnings are becoming increasingly Finance-sector dependent; Healthcare and Packaging profitability lagged revenue growth; Greener Water remains delayed.

**Opportunities:** Associated Motor Finance Company PLC integration, Philippines entry, vehicle-financing recovery, regional packaging growth, construction recovery, tourism expansion and further digital/operational productivity improvements.

**Threats:** credit deterioration during aggressive lending expansion, funding-cost increases, FX volatility, regulatory change, acquisition integration risk, imported-input inflation and renewed weakness in consumer or construction demand.

### Overall Assessment

Vallibel One PLC currently combines **strong earnings momentum and improving operating margins with materially higher financial leverage**. Q2 2026 confirms that underlying growth remains strong, particularly in Finance, but also shows that quarterly profitability can vary significantly with revenue mix. The most important indicators to monitor are therefore **loan-book growth versus credit quality, debt/equity, Finance-sector funding costs, operating cash generation, Associated Motor Finance Company PLC integration, and whether non-finance segments convert revenue growth into stronger margins**.

At approximately **8x trailing earnings and below reported NAV**, valuation metrics appear moderate relative to current earnings, but the increased leverage and concentration of incremental growth in financial services are central factors that need to be weighed against the Group's stronger profitability and expanding asset base.