Overview
Dilmah Ceylon Tea Company is a vertically integrated, branded Ceylon tea exporter with broad global distribution and a long-standing social pledge. FY26 delivered a strong rebound, but the March quarter slipped to a small loss while a LKR 25 dividend goes ex on 7 Aug 2026.
Price performance
The share rose 25.2% over 1 year versus the ASPI's 9.3%. Over 6 months it gained 20.2% against the index's -11.3%. The 3-month move was -5.7% versus -6.5%.
Valuation
P/E is 18.1, placing it around the 78th percentile in consumer_retail. P/B is 1.24 and ROE 7.8%. Dividend yield is 1.7%, below the sector median 2.6%.
News and sentiment
Coverage was normal with 3 material items over the last 90 days. The split was 2 positive and 1 negative. A first and final dividend of LKR 25 per share goes ex on 7 Aug 2026. A separate industry report highlighted Middle East disruptions, with the company shifting into new markets.
Financials
In the March quarter, revenue was LKR 6.34 billion and the company posted a net loss of LKR 90.5 million. Gross margin was 37.8% and net margin -1.4%. Operating profit for the quarter was not disclosed. For FY26, net profit rose 160.8% and net margin was 8.6%.
Risks
Geographic exposure: about 30% of sales are to the Middle East, where logistics have been disrupted. Trade policy: a new 10% US tariff regime adds uncertainty for exporters. Cost pressures: July inflation was 7.3%, with earlier fuel spikes raising logistics costs. Liquidity is thin, with a 20-day average volume of 86 shares.
Outlook
As at 6 Aug 2026, the next figures are due. They are expected between 28 Jul and 28 Oct 2026. That filing will show whether the March loss was transient or a turn in trend, and set the tone for FY27 alongside the confirmed dividend cash out.