The Teejay Group recorded revenue of LKR 15.64 billion in the quarter ended 30th June 2026 of FY2026/27, representing a marginal 1% year-on-year decline. The muted performance was primarily driven by lower sales volumes, continued pricing pressure from key customers and subdued demand across key markets. In addition, geopolitical disruptions, including the Strait of Hormuz crisis, which affected global supply chains and business operations, further impacted performance adversely. Despite these headwinds, the Group continued to advance its strategic transformation agenda by optimizing its product mix, diversifying markets and enhancing cost competitiveness to strengthen resilience and support sustainable long-term growth.
Consequently, the Group recorded a gross profit of LKR 0.3 billion for the quarter ended 30th June 2026, reflecting a significant 75% year-on-year decline. The decrease in gross profit was primarily attributable to lower sales volumes and persistent margin pressures arising from the prevailing market environment, which continued to impact the Group’s profitability during the period.
The Group reported a net loss of LKR 0.48 billion for the period under review, compared to a net profit recorded in the corresponding period of the previous year. Simultaneously, decisive cost transformation initiatives, organizational restructuring and strategic operational realignments were implemented during the period, reinforcing its operational foundation and positioning the business for improved long-term performance.
Meanwhile, distribution and administrative expenses for the quarter under review amounted to LKR 932 million and LKR 136 million, respectively, representing year-on-year reductions of 3% and 16.0% compared to the corresponding quarter of the previous financial year. These reductions were primarily driven by the Group’s continued focus on cost optimization initiatives and disciplined expense management practices.
Ajit Gunewardene, Chairman of the Teejay Group commented: “Periods of market uncertainty often provide the greatest opportunity to strengthen an organization for the future. While global market conditions remained challenging during the quarter, Teejay continued to execute its long-term transformation agenda with discipline and conviction. Our strategic focus on operational agility, product diversification, cost competitiveness and financial resilience ensures that we are not merely responding to today’s challenges but preparing the business to capture tomorrow’s opportunities.”
Despite the headwinds, the Group maintained a strong financial position at the close of the first quarter, supported by a robust balance sheet and a healthy cash balance of LKR 10.6 billion. The net asset base increased to LKR 34 billion, underscoring the Group’s solid financial stability. Consequently, the net asset value per share stood at LKR 47.08, reflecting sustained shareholder value and a strong capital position.
Commenting further, Pubudu De Silva, CEO of Teejay Group, Stated: “The quarter presented a challenging operating environment, but we remained focused on strengthening the business through disciplined cost management, operational efficiencies and continued diversification of our product portfolio and markets. While near-term conditions remain challenging, we are confident that the actions taken during the quarter have reinforced our competitiveness and positioned Teejay to benefit as market demand gradually recovers.”
Looking ahead to the rest of FY2026/27, the Group is well positioned to deliver sustainable and profitable growth, supported by a leaner cost structure, a diversified multi-location manufacturing and operational footprint and a strengthened product portfolio. This broader geographic presence enhances business resilience, operational flexibility and customer proximity across key markets. It is expected that as market conditions gradually improve, tariff-related pressures ease and customer demand recovers, the Group will capitalize on emerging opportunities, drive long-term value creation and further strengthen its competitive position in the global marketplace.
About Teejay Group
The Teejay Group owns manufacturing facilities in Sri Lanka and India, along with a state-of-the-art printing facility in Sri Lanka. An ISO 9001:2015, ISO 14001:2015 and OHSAS 18001:2007 compliant company and the first in the industry to develop green fabric, Teejay Lanka was also the first textile manufacturer in Sri Lanka to receive membership of the US Cotton Trust Protocol.
Teejay is a publicly quoted company with 40 percent public ownership and the backing of Sri Lanka’s largest apparel exporter Brandix Lanka which has a 32 percent stake in the Company. Pacific Textiles of Hong Kong, whose key shareholder is the Tokyo Stock Exchange listed Toray Industries Inc., owns 27 percent of Teejay Lanka.
Teejay Lanka was ranked the No 1 corporate entity among 100 public listed companies in Sri Lanka for Transparency in Corporate Reporting in the TRAC 2023 assessment carried out by Transparency International Sri Lanka (TISL), the local arm of the international corruption watchdog. The TISL assessment was carried out on three areas crucial to fighting and preventing corruption: reporting on anti-corruption programmes, transparency in company holdings and the disclosure of key financial information in domestic operations.
