Overview
Singer Finance is a national lender and lessor focused on vehicle financing and consumer and SME credit, funded by deposits and other borrowings. The key change is scale and profitability: total assets have surpassed LKR 100 billion and the latest June quarter delivered the strongest June margins on record, indicating operating discipline as the book expands.
Price performance
The share closed at LKR 50.00 as of 2026-08-07. It is up 17.9% over 1 year, outperforming the ASPI’s 9.5%, while the 3-month return of -6.7% is roughly in line with the index. The stock sits 36.7% below its 52-week high.
A September 2025 rights issue changed the share basis; the as-traded 1-year return was -0.8%, so use adjusted returns for like-for-like comparison. Trading volumes have been light against its own 60-day run-rate.
Valuation
At 7.36x earnings, the stock trades around the sector median of 7.68x. P/B is 1.41, which is broadly supported by a 16.3% ROE. The dividend yield is 2.0%, below the sector’s 3.6% and the payout has been variable over time: FY2026 was LKR 1.00 versus LKR 1.34 in FY2022.
News and sentiment
Coverage has been normal overall but quiet in the last month. Over the past 90 days there were three material items (two positive, one neutral). Management disclosed that the asset base exceeded LKR 100 billion in early FY2026/27 (2026-07-06). The board declared a first interim dividend of LKR 1.00 per share, ex on 2026-06-12. Board refresh continued with a seasoned banker joining in March 2026.
Financials
June 2026 quarter: revenue was LKR 2.60 billion, with operating margin at 41.8% and net margin at 17.9%. This was the strongest June-quarter margin print on the company-only basis. Below the line remained heavy, with finance costs and tax absorbing LKR 621 million in the quarter.
Full year to March 2026: net profit grew 84.9% year-on-year, with operating and net margins at 42.9% and 18.6%, and ROE at 16.3%. The margin expansion and profit growth came alongside rapid balance sheet growth, with assets stepping up into the new financial year.
Risks
Funding leverage is the lead risk: total debt was LKR 40.80 billion at FY2025/26, equivalent to 423% of owners’ equity, so earnings remain sensitive to funding costs. Equity volatility is elevated (beta to ASPI 1.85), and day-to-day liquidity can be thin relative to its own history. Sector supervision has tightened, with the Central Bank warning finance companies on vehicle valuations and LTV discipline, which could temper growth or raise compliance costs. Below-the-line charges also remain material, with LKR 621 million taken by finance costs and tax in the June quarter.
Outlook
Next figures are due for the quarter ending 2026-09-30, expected from 2026-10-28 to 2027-01-26. As at 2026-08-07, Treasury-bill yields have been easing, which is consistent with some relief to funding costs for lenders, while regulatory scrutiny around secured lending standards remains an operational headwind to watch.