Overview
Haycarb PLC manufactures coconut shell activated carbon and specialty grades, and provides water and wastewater purification systems through Puritas. The key change is the gap that opened between price and operations: the latest filed quarter shows weaker margins and profit year-on-year, while the share has re-rated sharply. Countering this, the full year printed strong top-line growth and the company has committed to capacity in energy storage carbons via a BOI-backed expansion.
Price performance
Momentum is strong across windows: +29.9% over three months versus the ASPI’s -6.5%, +41.9% over six months versus -11.3%, and +95.1% over one year versus +9.3%. The share closed at LKR 177 on 6 August, near its LKR 180 52-week high. This rally has come with no company news in the last 30 days, per our coverage dataset.
Valuation
At a P/E of 14.51 Haycarb trades richer than manufacturing peers (median 12.55; 68th percentile), while P/B of 1.79 is in line with sector median 1.81 (50th percentile). ROE of 12.3% reconciles with P/B via P/E, so the premium multiple is internally consistent with returns. The trailing dividend yield is 2.4% versus the sector’s 3.2%, with a 35.5% payout and 2.82x cover, leaving room to fund growth.
News and sentiment
Coverage over 90 days was constructive (7 positive, 0 negative out of 9 material items) but unusually quiet in the last 30 days (0 articles vs a 1.0 per-month baseline). On 2 June, Haycarb signed a BOI agreement for a US$18.18 million expansion in Energy Storage Carbon; a Philippines facility is targeted for phase 1 by H1 2027. Two dividends were confirmed recently: LKR 1.70 per share (ex 15 Apr 2026) and LKR 0.75 (ex 9 Jul 2026). One article reported a 5% profit rise for the March quarter; the filed numbers show net profit fell 48.3% year-on-year, so readers should anchor on the filings.
Financials
The March 2026 quarter softened year-on-year: revenue fell 13.1%, gross margin was 17.8% vs 28.7% a year ago, operating margin 10.8% vs 14.7%, and net margin 6.9% vs 11.6%. Net profit declined 48.3% year-on-year. Below the line remained a drag at LKR 760 million, indicating finance costs and tax continued to absorb a material share of operating profit. Against that weak quarter, the full year ended March 2026 delivered 55.3% revenue growth and 1.6% net profit growth, with ROE at 12.3%. Gross margin in the latest quarter ranked the worst of the last seven March quarters. The share count was stable at 297.12 million, so per-share moves reflect earnings, not dilution; equity stood at LKR 33.35 billion.
Risks
Operationally, margin compression and a sizeable below-the-line drag leave results sensitive to input spreads and financing and tax costs. Externally, exporters face a new 10% US tariff regime in the backdrop window, while currency moves and rates can shift cost and demand conditions; as at 6 August, rates were easing and the rupee was slightly firmer. The recent price run with unusually quiet newsflow raises the risk that expectations outran near-term earnings.
Outlook
The next catalyst is the June 2026 quarter filing, which as at 6 August is due and should be in by 28 October 2026. A return to year-on-year profit growth would indicate the March-quarter squeeze was transitory. Medium term, the BOI-approved US$18.18 million energy storage carbon expansion and the Philippines build (phase 1 by H1 2027) provide capacity-led growth vectors, but execution will be judged against margin repair in the interim.