Diversified Sri Lankan conglomerate Sunshine Holdings PLC (CSE: SUN) recorded consolidated revenue of LKR 65.9 billion for the year ended 31 March 2026 (FY26), reflecting an 11.2% year-on-year (YoY) increase. Growth was supported by continued expansion in Healthcare, improving momentum in Consumer, and a stronger contribution from Agribusiness. While profitability was impacted by sector-specific margin pressure in Healthcare, the Group maintained broadly stable operating performance, reflecting the resilience of its diversified portfolio.

The Healthcare sector remained the largest contributor to Group revenue, accounting for 56.8% of consolidated revenue in FY26. The Consumer and Agribusiness sectors accounted for 28.9% and 14.3% of Group revenue, respectively, reflecting Sunshine Holdings’ diversified sector exposure across healthcare, consumer goods, and agriculture-linked businesses.

Group gross profit increased by 6.7% YoY to LKR 19.0 billion, while gross profit margin moderated to 28.9%, compared to 30.1% in FY25. Earnings before interest and taxes (EBIT) remained broadly stable at LKR 9.3 billion, although EBIT margins declined to 14.1%, compared to 15.7% in FY25. Profit after tax (PAT) for the year stood at LKR 5.0 billion, a marginal decline of 2.5% YoY. The moderation in profitability was primarily driven by margin pressure in the Healthcare sector, including the impact of NMRA pricing adjustments affecting pharmaceutical products and lower prices for Government purchase orders. In addition, the Group has reclassified withholding tax (WHT) on dividend payments from subsidiary companies to the holding entity as part of tax expenses, rather than through the Group’s Statement of Changes in Equity. Accordingly, tax expenses for FY26, the last quarter of FY26, and the comparative figures for FY25 have been restated to reflect this change.

During the financial year, the Group acquired a majority stake in Joint Agri Products Ceylon (Private) Limited (JAPC), a company engaged in the processing and export of spices, coconut products, and teas, primarily to the European Union and the United States. The investment strengthens Sunshine Holdings’ Consumer footprint and supports the Group’s long-term focus on value-added, export-oriented growth.

Commenting on the results, Sunshine Holdings Group CEO Shyam Sathasivam said, “FY26 was a year of resilient growth for Sunshine Holdings, with the Group delivering strong revenue expansion across its core sectors while navigating sector-specific profitability pressures. Healthcare continued to lead Group revenue, supported by strong execution across pharmaceutical agency, distribution, medical devices, and retail, while Consumer and Agribusiness maintained positive growth trajectories. Although margin were impacted by pricing pressure in the Healthcare, the Group preserved stable operating performance and continued to strengthen its platform for long-term growth.”

“As we move forward, our focus remains on scaling high-performing verticals, strengthening local manufacturing and distribution capabilities, and expanding our presence across domestic and export markets. The acquisition of JAPC provides a strong platform to deepen our value-added export strategy, while our continued investments across Healthcare, Consumer, and Agribusiness position the Group to deliver sustainable value to shareholders and wider stakeholders,” Sathasivam added.

Healthcare

The Healthcare sector delivered a strong performance in FY26, recording revenue of LKR 37.4 billion, a 14.9% YoY increase. The performance was driven by the pharmaceutical agency, distribution, retail, and medical devices businesses, reflecting the sector’s strong operational base and continued market penetration.

Sunshine Pharmaceuticals recorded revenue growth of 24.4% YoY, driven by volume expansion and higher export revenue during the year. However, sector profitability was impacted in the latter part of the year due to the NMRA pricing mechanism, under which maximum retail price reductions were applied across pharmaceutical products.

Healthguard Distribution posted revenue growth of 25.2% YoY, supported by the full-year impact of its model change and the onboarding of five new distribution clients. Sunshine Medical Devices recorded revenue growth of 12.3% YoY, supported by stable demand across core product categories.

Lina Manufacturing recorded a 5.1% YoY revenue decline, primarily due to lower prices for Government purchase orders for the 2026 calendar year.

Healthguard Pharmacy, the retail arm of the Group, achieved revenue growth of 11.3%, driven by value and volume growth across both pharma and wellness segments.

Consumer

The Consumer sector, which includes both export and domestic branded businesses, recorded 2.8% YoY revenue growth in FY26 and accounted for 28.9% of Group revenue. This performance was supported by continued resilience in the branded tea portfolio and a gradual recovery in the confectionery business.

Within branded tea, revenue grew by 7.6% YoY, supported by strong execution across modern trade channels, which helped drive 8.7% YoY volume growth. The Group’s flagship tea brands, Zesta, Watawala, and Ran Kahata, continued to perform across the mass market, value-for-money, and premium segments.

The confectionery segment recorded 8.5% YoY revenue growth and 8.9% YoY volume growth, led by strong performance in Gums and Wafers categories, supported by promotional initiatives and wider channel coverage.

Sunshine Tea, the export segment, recorded a 4.8% YoY decline in revenue in LKR terms, mainly due to a product mix shift from value-added products to bulk tea orders. However, export volumes grew by 8.1% YoY, reflecting continued demand from export markets.

Agribusiness

The Agribusiness sector, represented by Watawala Plantations PLC (CSE: WATA), recorded 18.9% YoY revenue growth in FY26, driven primarily by the strong operational and financial performance of the palm oil business.

Palm oil segment recorded revenue of LKR 8.4 billion in FY26, a 23.6% YoY increase attributable to higher sales volumes and improved selling prices. The palm oil segment recorded PAT of LKR 2.6 billion, with a margin of 30.8% during the year. Revenue from the dairy business declined by 8.2% YoY to LKR 1.1 billion, due to lower milk sales volumes.