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Amana Takaful PLC: research report

ATLView stock page →
Moderately overvaluedneutralAug 16, 2026

ATL remains profitable, but latest quarterly net profit fell 34.7% year-on-year despite June producing its best operating margin in seven comparable quarters.

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Why balanced

  • June operating margin ranked best of seven comparable group quarters at 57.7%.
  • The stock trades at a P/E of 11.31, below the insurance sector's valuation range and at the 33rd sector percentile.
  • The completed rights issue raised over LKR 1 billion, strengthening capital for growth and regulatory preparation.

Against this. Latest quarterly revenue fell 79.1% year-on-year and net profit fell 34.7%, showing that the strong margin print did not translate into earnings growth.

Operating margin
45.1%
of revenue plus other operating income, which is larger than revenue here
Net margin
37.9%
of revenue plus other operating income; profit here is mostly not from revenue
Return on equity
7.2%sector 7.2%
full year to Dec 31, 2025
P/E
19.5sector 13.1
earnings Rs 1.15 per share
P/B
0.99sector 1.52
book Rs 22.52 per share
Dividend yield
0.00%sector 1.78%
trailing twelve months

Current figures, updated daily from filings to Jun 30, 2026. The report below was written on Aug 16, 2026. Sector figures are the median of 11 listed companies in the same sector.

Overview

Amana Takaful is a Shariah-compliant insurer operating across family takaful and general insurance, with distribution through branches, agencies, bancassurance and digital channels. Its latest quarter combined a very strong operating result with weaker absolute earnings, while the completed rights issue materially expanded the capital base.

Price performance

The price sits at 40.0% of its 52-week range, measured from the low. Recent volatility and trading volume are both below the company's own recent norms, with the share basis adjusted for the 3:14 rights issue that went ex on 2026-04-17.

Valuation

The screen shows a 0.0% dividend yield, but no dividend history or trailing DPS is supplied, so the direction of the payout cannot be assessed. The valuation case is therefore based on below-sector positioning rather than income support.

News and sentiment

The main completed action was the 3:14 rights issue at LKR 19.00, which closed on 2026-06-23 after raising over LKR 1 billion and being 68.8% oversubscribed. The proceeds are intended for growth, digital initiatives and preparation for SLFRS 17/9; the issue also increased the share count and must be considered when reading per-share figures.

Financials

The LKR 54 million gap between operating and net profit was smaller than the LKR 66.7 million year-ago gap, indicating that finance costs, tax, associates and foreign-exchange effects absorbed less profit below the operating line. Group equity attributable to owners rose to LKR 6.74 billion, while shares outstanding increased to 299.5 million from 203.6 million after the rights issue, so the latest EPS of LKR 0.66 is not a like-for-like trend measure without recognising the larger share base.

Risks

Lower Treasury yields across the insurance sector can reduce returns on fixed-income investment portfolios, while inflation at 7.3% raises the operating and claims-cost environment. The company-specific filings do not quantify either exposure.

Outlook

The June figures are historical as at 2026-08-16, and the available news does not report a later earnings period. The next filing is therefore the clearest evidence on whether the capital raised is translating into broader and more durable earnings, while softer Treasury yields remain a sector-level consideration for insurers.

About this report. Generated on Aug 16, 2026 from market data up to Aug 14, 2026, 6 material news articles over 90 days and financials to Jun 30, 2026. Every figure is drawn from EquityLK's own data on this company. AI research can contain errors, so treat it as a starting point, not investment advice.

Previous reports

Aug 16, 2026Aug 6, 2026