Hemas H1 Revenue Rises 9.5% to Rs. 66.6 Billion as Strong Q2 Restores EBITDA Growth
COLOMBO, November 6, 2026 — Hemas Holdings PLC recorded revenue of Rs. 66.6 billion for the first half of FY2026/27, up 9.5% year-on-year, as a stronger second quarter helped restore growth in earnings before interest, tax, depreciation and amortisation (EBITDA).
Second-quarter revenue increased by 17% to Rs. 37.8 billion, with all four sectors recording growth. Hospitals led with a 19.3% increase, followed by Consumer Brands at 18.3%.
Quarterly EBITDA rose 10.5% year-on-year to Rs. 4.5 billion, nearly double the first-quarter level. The recovery lifted first-half EBITDA growth to 0.9%, reversing the 14.1% year-on-year decline recorded at the end of the first quarter.
Group earnings more than doubled from the first quarter to Rs. 2 billion. However, earnings declined 3% year-on-year, reflecting higher finance costs and a higher tax charge. Increased borrowings funded working capital requirements and the acquisition of Twiga Stationers & Printers Limited.
Hemas said it absorbed much of the increase in raw material, energy and freight costs associated with the Middle East conflict to protect affordability and sales volumes. Gross margin narrowed by 3.1 percentage points to 29.7%, although overheads grew more slowly than revenue, supporting EBITDA growth.
Within Consumer Brands, Beauty, Home Care and Baby Care achieved double-digit growth. Beauty now accounts for 20% of the home and personal care portfolio.
Bangladesh revenue recorded single-digit growth despite challenging economic conditions, while the male grooming category expanded by nearly 50%.
The Learning business reported continued growth in newer product categories, with Back-to-School and Bags volumes increasing by more than 50% year-on-year.
In Life Sciences, Hemas Pharmaceuticals retained its market leadership and secured six new product registrations during the quarter. The business continued to absorb higher costs while awaiting approval for regulated price revisions. Morison’s own-brand volumes increased by 23%.
During the quarter, Hemas completed its first international acquisition, purchasing a 75% stake in Twiga Stationers & Printers Limited, a stationery manufacturer and exporter in East Africa. The Group said revenue was tracking in line with projections and that the acquisition provided a platform for regional expansion.
Looking ahead, Hemas expects pharmaceutical price revisions, cost and productivity initiatives, and the third stage of the public-sector salary revision in 2027 to support margins and volumes.
The Group remains focused on achieving mid-teen compound annual growth in revenue and earnings under its Long Range Plan, while targeting a 15% contribution from international markets to revenue by FY2030. It has earmarked more than US$100 million for new growth platforms, with investment to be deployed selectively.
