Hemas Holdings PLC has managed to sustain revenue in the first quarter ended 30 June 2026 but suffered a dip in earnings.
The Group recorded revenue of Rs. 28.77 billion, an increase of 0.9% year-on-year (YoY), while gross profit margin improved by 0.2 percentage points to 30.4%. However, Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) declined by 14.1% to Rs. 2.26 billion and Group earnings attributable to equity holders declined by 21.4% to Rs. 937 million. Revenue growth in Consumer Brands, Hospitals, and Mobility was offset by a 3.8% decline in Life Sciences.
Hemas Group CEO Ashish Chandra said the divergence between revenue and earnings was primarily caused by the rapid escalation of costs and the time required to recover these increases through pricing.
He said despite strong headwinds, the top line grew marginally driven by sustained demand and price increases across the Consumer, Healthcare, and Mobility portfolios. However, due to the adverse macroeconomic environment, net operating costs rose by 9% YoY, weighing on EBIT and EBITDA and diluted margins. Selling and distribution costs, up 12.3% YoY, accounted for over 50% of the 1Q increase in operating costs, reflecting the significant rise in logistics, fuel, freight, and related distribution costs.
Rupee depreciation increased finance costs at the Leisure JV on its USD borrowings, reducing the Group’s earnings for the quarter.
Higher interest rates, however, benefitted Hemas as a net cash-positive company, helping to recoup some of the lost operating margin, bringing the earnings margin to 3.3%, down just 0.9 percentage points YoY (compared to a 1.4-percentage-point YoY decline in the EBITDA margin).
‘The management’s immediate priorities are to restore cost recovery, protect volumes through calibrated pricing, accelerate productivity initiatives, and improve profitability in Consumer Brands and Life Sciences. While energy and currency volatility are expected to persist, the Group remains focused on strengthening performance while executing its long-term growth priorities with discipline,’ said Chandra.
Going forward, Hemas also said segmental reporting will be broken down into Consumer Brands, Life Science, Hospitals, Mobility and Strategic Investments.
‘The key change is the split of the former Healthcare segment into Hospitals and Life Sciences, reflecting the fundamental differences between these businesses and how they are managed. This change has been implemented in line with our commitment to improving transparency, giving shareholders a better understanding of the business,’ the Group CEO added.
Commenting on the outlook, Chandra said guided by four overarching capital allocation themes, Hemas Group has established goals to accelerate its pace of growth by aggressively pursuing adjacencies through both organic and inorganic growth, exploring a new sector entry in Sri Lanka, growing international revenue, and developing human capital and digital capabilities across the Group. Alongside this, strengthening internal efficiencies to reduce the impact of costs on earnings remains a key priority for the Group.
‘While the near-term operating environment remains volatile, our priorities are clear: restore margins in Consumer Brands and Life Sciences, sustain growth momentum in Hospitals and Mobility, and execute our growth investments with discipline. Our diversified portfolio and net cash position provide resilience, while actions on pricing, cost recovery, and productivity will strengthen performance. We remain firmly focused on delivering our long-term growth ambitions and creating sustainable value for our shareholders and stakeholders,’ Chandra added.