Overview
Commercial Credit & Finance is a non-bank lender offering lending, leasing, deposit-taking and treasury products. Its most important recent operating change is that the June 2026 quarter produced the strongest operating and net margins in its comparable June record, despite the share price remaining under pressure.
Price performance
COCR fell 9.1% over one month while the ASPI gained 1.3%, and declined 25.3% over one year against a 3.3% ASPI gain. The closing price was LKR 102.00 on 3 September 2026.
The share stood 0.5% of the way through its 52-week range, effectively at its low, and was 32.7% below the high. Sixty-day volatility was 24.7% below its own one-year norm, while 20-day trading volume was 142.9% above the 60-day average. The heavier turnover is consistent with heightened trading activity, but the data does not establish its cause.
Valuation
At 3.34 times earnings, COCR sits at the 0th percentile of 48 banks and finance peers on P/E. Its P/B of 0.868 is below book value, while FY2026 ROE was 26.9%, making the sub-book valuation notable rather than a simple sign of weak profitability.
The 15.7% dividend yield ranks at the 94th percentile among 35 peers. Dividend per share rose from LKR 4 in FY2024 to LKR 10 in FY2026, supporting the yield with an upward payout record; the latest payout ratio was 52.4%.
News and sentiment
Coverage was normal rather than unusually elevated, with one article in the past 30 days against a monthly baseline of 1.3. Over 90 days, six material items comprised two positive, one negative and three neutral articles.
The company declared a LKR 7 final dividend on 31 July 2026. It went ex-dividend on 2 September and is due for payment on 17 September.
Financials
June 2026 quarterly revenue was LKR 6.91 billion and net profit was LKR 2.07 billion. Gross margin is not disclosed. Operating margin was 40.5% and net margin 30.0%; a year-ago June comparison is unavailable in the supplied group-basis filings, but both were the best of six comparable June quarters.
Operating profit was LKR 2.80 billion, with LKR 724 million absorbed below the operating line before net profit. Equity was LKR 37.39 billion versus LKR 36.27 billion at March 2026, while the share count remained 318.1 million.
The latest audited year, ended March 2026, recorded revenue growth of 4.7% and net-profit growth of 58.7%. These annual figures precede the June quarter; the twelve months to June are reconstructed from interim filings and are not an audited full year.
Risks
Funding leverage is the principal balance-sheet risk. At March 2026, total debt was LKR 31.01 billion, equal to 85.5% of owners’ equity, up from 62.8% a year earlier. Interest cover is not disclosed in the supplied data, limiting visibility on the resilience of earnings to funding costs.
As a finance company, COCR also operates amid tighter customer due-diligence and monitoring requirements across the sector. The sector backdrop notes substantially higher penalties for breaches, adding compliance and execution risk.
Outlook
As at 3 September 2026, the next confirmed corporate event is payment of the LKR 7 final dividend on 17 September. The next financial catalyst is the September 2026 quarter, expected to be filed between 12 November 2026 and 2 March 2027; it will supersede the June-based operating evidence.
The data cannot yet show whether June’s record comparable-quarter margins will persist. Easing Treasury yields provide a potentially more favourable funding backdrop for lenders, while inflation reached 8.0% in August and sector compliance requirements are tightening.