Overview
Eden Hotel Lanka PLC operates hotels and resorts in Sri Lanka and the Maldives, including the Browns Ari Resort that commenced operations in August 2023. The most notable recent change is operational traction at the group level that delivered a profit in the March quarter, even as funding and liquidity remain tight and the trailing year is still loss-making.
Price performance
The share fell 30.6% over 12 months versus the ASPI’s 9.5% gain. Over 3 months it is down 14.5% against the index’s -7.1%.
At LKR 10.00 as of 2026-08-07 the price sits at its 52-week low and 36% below the high. Recent trading is quieter and volumes lighter than its own year’s norms.
Valuation
P/E is not meaningful given losses (EPS TTM -1.19). P/B is 0.91, a touch below the sector median of 0.99.
ROE was -6.7%, consistent with loss-making. Dividend yield is 0.0% versus the sector’s 2.1%; there has been no TTM dividend and no recent payout trend disclosed.
News and sentiment
Coverage is thin, with two material articles in the last 90 days, both neutral. One was a board appointment at Serendib Hotels citing the appointee’s role on Eden’s board; there were no operational or earnings updates. No corporate actions are on file.
Financials
March 2026 revenue was LKR 2.45 billion. Gross margin reached 78.0%, the best in the disclosed series.
Net margin was 5.9% versus 20.7% a year earlier. Net profit was LKR 144 million, with LKR 192 million absorbed below the line.
Per-share metrics are not directly comparable with 2023 due to a larger share base.
Risks
The binding risk is financing: interest cover was 0.06 and the current ratio 0.31 at FY2025, leaving little headroom. Leverage is elevated, with debt at 88.5% of owners’ equity.
Cash generation is weak, with a free cash outflow of roughly LKR 931 million and cash conversion at 0.37. Nearly half of group profit belongs to minorities (48.9%), which dilutes what accrues to EDEN shareholders.
Outlook
As at 7 Aug 2026 the next set of numbers is the June quarter, due by 26 Oct 2026. What to watch: whether March-quarter profitability extends and the interest burden eases as rates drift down; this matters given interest cover of 0.06.
Sector demand is steady but not accelerating, with July Sri Lanka arrivals at 196,845, so sustained improvement will likely need continued operational discipline and cost control as the Maldives and domestic resorts contribute.