Overview
Singer Finance is a non-bank lender focused on lending, leasing, deposits and vehicle finance. The latest June quarter extended a strong earnings expansion, with both operating and net profit growing faster than revenue and margins reaching the best comparable June-quarter levels on record.
The business is simultaneously enlarging its funding and capital base. The confirmed rights issue is intended for capital adequacy and lending, making the capacity to deploy that new capital productively central to the company’s financial case.
Price performance
At LKR 47.00 on 25 September 2026, the share had fallen 9.8% over three months, compared with a 5.3% decline in the ASPI over the same period. It sits near the lower end of its 52-week range, while recent volatility has been below its own one-year norm.
The three-year record contains four falls of 15% or more, with the deepest at 51% and not yet recovered. This is a share with a documented history of sizeable retreats rather than a smooth trading record.
Median daily turnover was LKR 542,239 over the past 60 sessions, and a LKR 1 million order is more than everything that trades on a typical day, 184% of it. Building or exiting even a modest position can therefore represent a large part of normal daily trading.
Valuation
The share trades on 7.7 rupees for every rupee of trailing profit and 1.33 rupees for every rupee of net assets. Its 17.7% return on equity helps explain why the P/B sits above the finance-sector median, rather than making that premium a standalone concern.
The P/B is at the 65th percentile among 53 finance peers, so it is above much of the sector but not at an extreme. Against its own record, however, it is more expensive than 82% of days since January 2019. A buyer at this price is relying on the latest quarter, which supplied 23.8% of trailing EPS, maintaining a net margin close to its year-ago level.
The 2.1% dividend yield is modest for the sector. The latest LKR 1.00 payout follows years for which no dividend is recorded after FY2022, so the yield does not evidence a consistently recurring distribution record.
News and sentiment
Coverage has been unusually heavy, with five material articles in the last 30 days, or 2.5 times Singer Finance’s normal monthly rate. Of ten material articles over 90 days, four were positive and six neutral.
The substantive item is the confirmed rights issue: reporting on 25 September gave an ex-date of 16 October for an 8-for-29 issue at LKR 39.20 per share. Board and committee changes, including Jonathan Alles becoming chairman effective 12 September, were also reported, but the disclosures provide no quantified earnings effect.
Financials
June-quarter revenue rose 44.4% year-on-year to LKR 2.6 billion and net profit rose 53.9% to LKR 466 million. Profit therefore grew faster than lending income, leaving more profit attributable to each ordinary share.
Gross margin is not applicable from the available lender financial presentation. Operating margin widened from 41.4% to 41.8%, while net margin rose from 16.8% to 17.9%; both were the best of seven comparable June quarters. The LKR 621 million gap between operating and net profit still shows the weight of finance costs, tax and other below-operating items.
Equity reached LKR 9.8 billion at June, with 277.9 million shares outstanding, unchanged from the latest balance-sheet count. The twelve months to June 2026 delivered 48.9% revenue growth and a 17.7% return on equity, though these are reconstructed from interim filings rather than an audited full year.
Risks
The leading risk is balance-sheet leverage inherent in a fast-growing lender. Total liabilities were 9.04 times equity at the March 2026 year-end, up from 8.36 times a year earlier, meaning lenders and depositors provide far more of the funding base than ordinary shareholders.
The forthcoming 8-for-29 rights issue directly addresses capital capacity but also changes the claim on future profits for holders who do not participate. Its LKR 39.20 issue price is below the 25 September market price, making the dilution question concrete rather than theoretical.
Sector conditions add a funding-risk backdrop: Treasury-bill yields had risen after an 11-week decline as at 25 September 2026. That is relevant to lending and deposit pricing across finance companies, although the available data does not quantify the effect on Singer Finance specifically.
Outlook
As at 25 September 2026, the next confirmed company event is the rights issue ex-date on 16 October. It will add capital intended for lending and capital adequacy, but will also enlarge the ordinary share base, so subsequent per-share outcomes depend on deployment of the additional funds.
The next operating update is the September 2026 interim quarter, expected between 6 and 14 November. It will supersede the June-quarter figures and show whether the record June margins and rapid lending-income growth continued after the capital-raising decision. The available data cannot determine the credit quality or returns on lending funded by the new capital.