SIERRA CABLES PLC DELIVERS STRONG SIX-MONTH PERFORMANCE FOR THE PERIOD ENDED 30TH SEPTEMBER 2025

• Achieves 80% topline growth to LKR 7.51 bn; EBIT up 97% to LKR 1.66 bn; and Net Profit surges 130% to LKR 1.37 bn

Sierra Cables PLC, a subsidiary of Browns Investments (the strategic investment arm of the LOLC Group), announced a robust financial performance for the first half of the 2025/26 financial year, reflecting a period of strengthened business fundamentals, operational discipline and continued expansion across international markets. 

For the six months ended 30th September 2025, the Group recorded a revenue of LKR 7.51 billion, a significant increase from LKR 4.17 billion in the corresponding period in the previous year. Gross profit rose to LKR 2.06 billion, supported by improved efficiencies and more stable raw material procurement. Profit before interest and tax reached LKR 1.66 billion, while net profit rose to LKR 1.37 billion, almost doubling year-on-year, resulting in basic earnings per share of Rs. 2.55 compared to Rs. 1.11 in the previous year.

This performance reflects Sierra Cables’ strong growth trajectory. All operational and strategic initiatives are driven by Harsha Jayatunga, Executive Director/CEO of the Company. Under his guidance, Sierra is transitioning into an export-oriented organisation with product quality aligned to global benchmarks. The Company is also proud to be Sri Lanka’s only cable manufacturer supplying UL44-certified cables for homebuilding in the US, underscoring its world-class manufacturing standards.

Commenting on the company’s performance, Harsha Jayatunga stated: “Our FY2025/26 first-half results are a strong reflection of the strategic focus and operational discipline we maintained throughout the year. The clear vision and guidance of our Chairman, Ishara Nanayakkara, continues to steer the organisation in the right direction, enabling us to execute our strategy with confidence and clarity. We achieved substantial top-line growth while strengthening gross and net profitability, despite an environment marked by fluctuating raw material costs. The affirmation of our A+ rating validates the strength of our financial position, while our expansion across global markets continues to unlock new opportunities. As we look ahead, we remain committed to deepening our global presence, enhancing manufacturing excellence and driving sustainable, long-term value creation for all stakeholders. The foundation laid in these six months gives us a strong platform for the next phase of our growth journey.”

During this period, the Company’s financial discipline was acknowledged through the continued affirmation of its A+ (lka) national long-term rating from Fitch Ratings, carrying a stable outlook. This rating reflects Sierra Cables’ solid market position, consistent cash flow generation, prudent leverage levels and sound governance structures.

International expansion remained a central pillar of Sierra Cables’ growth strategy. The Company continued to strengthen its presence across Asia, Eastern Europe, Oceania, North America and select African markets. A key milestone in its export journey has been its increasing penetration into the US market, reinforcing its position as Sri Lanka’s leading exporter of cable containers to the US.

Sierra’s state-of-the-art manufacturing facility continues to be a cornerstone of its competitive strength. The factory’s capacity has been enhanced to better meet rising domestic and international demand. The facility includes an in-house, high-end testing laboratory capable of conducting international-standard tests, ensuring consistent quality across all product categories. The Company maintains a strong focus on research and development, enabling continuous product innovation and alignment with evolving global requirements, such as the SAP system, which is being implemented across Group operations. 

The organisation’s success is equally driven by its highly motivated workforce, supported by structured technical training, leadership development and attractive employee benefits that position Sierra Cables as one of the most rewarding places to work in the industry. The Company places a strong emphasis on safety, continuous improvement and collaboration, ensuring that employees remain engaged and aligned with strategic ambitions.

Furthermore, Sierra Cables’ solid performance was also underpinned by major projects completed during the period. Recent engagements included Cressida Resort Apartments & Residencies by Home Lands Skyline, Oceana Beach Resort Apartments & Villas in Wadduwa and the Applewatta housing scheme in Maligawatta, adding to a track record of landmark developments such as Cinnamon Life at City of Dreams, Shangri-La Hambantota, ICC by Kotte Residencies, the Dambulla International Stadium, the Ferentino Tyre Factory in Horana and the Colombo International Airport Hotel. These projects have contributed significantly to the country’s national infrastructure by ensuring commercial, residential and public facilities are supported by reliable, fire-safe and technically compliant electrical systems.

Sustainability also remained a core operational pillar. Sierra’s manufacturing operations have maintained ISO 9001, ISO 14001 and ISO 45001 certifications, supported by rigorous internal testing and international laboratory validation. The Company continued to upgrade equipment and processes to improve energy efficiency, reduce environmental impact and strengthen circular resource management.

Looking forward to the remainder of FY2025/26, Sierra Cables plans to intensify its export operations with a sharper focus on markets in North America, Africa and Eastern Europe, where infrastructure expansion continues to drive demand for high-quality cables. 

The Company is also preparing to introduce new specialised product lines, particularly for renewable energy, construction-grade fire-resistant cables and high-performance industrial applications. Manufacturing modernisation will continue under a phased investment plan prioritising automation, precision engineering and energy-efficient technologies to strengthen reliability and cost competitiveness.

Sierra Cables enters the second half of the financial year confident in its strategic direction, supported by strong leadership, world-class manufacturing, a highly skilled workforce and growing international demand. The Company remains firmly committed to delivering long-term value to its shareholders, customers, employees and communities.