Haycarb PLC Records Rs. 40.6 Billion Revenue in 1H, Profit Before Tax Surges 75% to Rs. 4 Billion

Haycarb PLC | Financial Performance – Six Months Ended 30 September 2026

Financial Performance

• Haycarb PLC, a member of the Hayleys Group, reported a strong financial performance for the six months ended 30 September 2026.
• Group revenue increased by 42% year-on-year to Rs. 40.6 billion, reflecting improved business performance and higher market demand.
• Profit before tax (PBT) surged by 75% to Rs. 4.0 billion, compared to the corresponding period of the previous financial year.
• Profit attributable to shareholders recorded significant growth of 98% to Rs. 2.5 billion.
• Earnings per share (EPS) increased to Rs. 8.41, reflecting the substantial improvement in shareholder earnings.

Business Expansion and Growth Drivers

• The Group strengthened its market position in several key business segments, particularly:
  • Gold recovery applications.
  • Water treatment solutions.
  • Activated carbon products for specialised industrial applications.
  • Energy storage-related activated carbon products.
• Increased market penetration and product development initiatives supported revenue diversification and margin enhancement.
• The continued expansion of Haycarb’s energy storage carbon portfolio was a key contributor to growth during the reporting period.
• Global demand for specialised activated carbons used in advanced energy storage applications remained robust.
• The Group continued executing its transformation strategy, focusing on expanding its value-added activated carbon solutions portfolio.
• Strategic priorities included:
  • Expanding the global manufacturing footprint.
  • Strengthening market presence.
  • Developing higher-value products.
  • Improving supply chain resilience.
  • Enhancing operational efficiency.

Supply Chain Challenges and Operational Resilience

• The reporting period was characterised by significant volatility in coconut shell charcoal availability and pricing across several sourcing markets.
• Despite these challenges, Haycarb maintained operational stability through its established sourcing and manufacturing network.
• The Group’s competitive advantages included:
  • An extensive global supplier network.
  • A diversified raw material sourcing model.
  • Geographically distributed manufacturing operations.
  • Strong supply chain management capabilities.
• These measures enabled the Group to maintain continuity of supply and meet customer requirements across key international markets.
• Amid geopolitical tensions and extreme climate-related impacts, the Group strategically increased its raw material and finished goods inventory holdings.
• The increased inventory levels helped maintain production stability and customer service standards.
• Trade receivables also increased in line with business growth, reflecting the higher revenue generated during the period.

Capital Expenditure and Strategic Investments

• Haycarb continued investing in long-term business expansion and capacity development during the six-month period.
• Total capital expenditure at Group level amounted to Rs. 4.8 billion.
• Of this amount, approximately Rs. 3.0 billion was invested in Sri Lankan operations.
• The investments primarily focused on:
  • Expanding production capacity for higher-value activated carbon products.
  • Strengthening manufacturing capabilities for energy storage applications.
  • Supporting the development of specialised activated carbon solutions.
  • Establishing a new greenfield manufacturing facility in the Philippines.
• The investments form part of the Group’s long-term strategy to strengthen its global manufacturing presence and capture opportunities in value-added product segments.
• The increase in capital employed is expected to support future earnings potential, supply chain resilience and long-term market leadership.

Management Commentary

Mohan Pandithage – Chairman of Haycarb PLC and Hayleys PLC

• The Group’s financial performance reflects the successful execution of its ongoing transformation strategy.
• Management remains focused on expanding its portfolio of value-added activated carbon solutions.
• Key priorities include market expansion, strengthening the global manufacturing footprint and improving supply chain resilience within the ESG framework.

Rajitha Kariyawasan – Managing Director of Haycarb PLC

• The Company continued advancing several strategic growth initiatives during the reporting period.
• Capital expenditure of Rs. 4.8 billion reflects the Group’s commitment to long-term value creation.
• Investments in Sri Lanka are primarily supporting capacity expansion in higher-value activated carbon products for energy storage applications.
• The proposed greenfield manufacturing facility in the Philippines represents another important step in the Group’s international expansion strategy.

Global Manufacturing and Market Presence

• Haycarb is a pioneer manufacturer of coconut shell-based activated carbon in coconut-producing countries.
• The Company operates manufacturing facilities in:
  • Sri Lanka.
  • Thailand.
  • Indonesia.
• Its international marketing network is supported by offices in:
  • United States.
  • United Kingdom.
  • Germany.
  • Australia.
• The Group generates foreign exchange earnings through its value-added manufacturing operations.
• Haycarb maintains a technologically advanced manufacturing position within its specialised activated carbon segment.
• Its established global manufacturing network enables the Company to serve customers across multiple international markets.

Outlook

• Haycarb remains optimistic about its future growth prospects, supported by increasing global demand for sustainable purification, gold recovery and energy storage solutions.
• The Group expects to benefit from opportunities arising from:
  • Growing demand for water purification technologies.
  • Continued demand for gold recovery applications.
  • Expansion of advanced energy storage technologies.
  • Increasing adoption of specialised activated carbon products.
• Its global manufacturing footprint and extensive sourcing network are expected to support continued business expansion.
• Ongoing investments in sustainable innovation, capacity expansion and value-added manufacturing are expected to strengthen its competitive position.
• The Group remains focused on delivering sustainable long-term growth while positioning itself as a leading global provider of specialised activated carbon solutions.

Key Financial Highlights

Reporting Period: Six months ended 30 September 2026.

Source: Haycarb PLC – Interim Financial Performance Announcement.

Disclaimer: this is not a buy or Sell recommendation