Overview
Vidullanka develops and operates renewable power projects, alongside EPC, engineering and project-delivery work, across hydro, solar and dendro technologies in Sri Lanka and overseas. The main change is a move beyond generation into grid-scale battery storage through Storex, while solar and dendro developments add to the existing operating portfolio.
The latest quarter combined modest revenue growth with a much larger rise in profit. That supports the operating case, but the expansion programme also changes the funding and execution burden, leaving the evidence more balanced than the strong profit print alone suggests.
Price performance
At LKR 21.70 on 18 September 2026, the voting share was up 21.2% over one year against a 0.7% ASPI gain, but down 5.7% over three months, broadly matching the index's 5.9% decline. The longer-period outperformance is therefore intact despite the recent retreat.
The price stood 37.4% of the way up its 52-week range and 24.9% below the high. Sixty-day volatility was 48.6% below its own one-year norm, while 20-day volume was 119.9% above the preceding 60-day pace, meaning recent trading has been more active but less variable than this share's own recent record.
The three-year record contains two falls of 15% or more, the deepest 35%, which has not yet recovered. Liquidity remains a practical constraint: median daily turnover was LKR 785,437, and a LKR 1 million order is more than everything that trades on a typical day (127% of it).
Valuation
The share trades at 12.8 times trailing earnings, or LKR 12.80 paid for every LKR 1 of the last twelve months' profit, versus a sector median of 26.8 times. Its P/B of 2.18 means LKR 2.18 is paid for each LKR 1 of net assets, and sits at the 78th percentile of the power and energy peer group; the premium to book is partly consistent with trailing ROE of 16.9%.
The company is more expensive than at 8 of its last 12 year-ends on P/E and 10 of 12 on P/B. A buyer at this price is relying materially on the June result: 30.7% of trailing EPS came from that quarter, and the P/E would be 14.7 times if that quarter had earned its year-ago margin. The 2.3% dividend yield is backed by a payout that rose through FY2026, while FY2027's recorded payment is incomplete and lower so far.
News and sentiment
Company coverage has been unusually heavy, with 10 articles in the past 30 days against a normal monthly rate of 3.2, and 12 of 15 material articles over 90 days were positive. The key development, reported on 18 September, was the commissioning of the first 10 MW/40 MWh Storex BESS facility within a planned 13-facility, 130 MW/520 MWh portfolio.
Vidullanka's LKR 2.0 billion investment for 49% of Storex gives it an economic interest in 63.7 MW of that storage portfolio. The announcement establishes project scale, but does not disclose the revenue or profit terms needed to quantify its earnings contribution. Separately, the 10 MW Ranna solar project was reported on 3 September as construction-complete but awaiting grid energisation, while the Medawachchiya dendro project received an initial LKR 100 million equity infusion.
Financials
June-quarter revenue rose 7.5% year-on-year to LKR 1.1 billion, while net profit rose 84.5% to LKR 556 million. Gross margin was 73.0%, essentially unchanged from 73.1% a year earlier, and ranked third of seven comparable June quarters. Net margin on revenue was 50.0%, the best June result in seven, but it is not a clean operating margin because LKR 330 million of other operating income was included in profit; on total income, net margin was 38.5%.
Operating margin is not available for the latest quarter, so no like-for-like operating-margin comparison can be made. The reported net-profit acceleration nevertheless shows that the latest quarter contributed disproportionately to trailing earnings rather than being solely a revenue-driven expansion.
Equity increased to LKR 10.6 billion from LKR 8.5 billion a year earlier. The latest filing used 1.036 billion shares, compared with 1.027 billion in the prior-year June filing, so the improvement in absolute profit is the clearer measure of performance than per-share changes.
Risks
The leading risk is funding a larger project pipeline while leverage is already higher. At March 2026, debt was LKR 4.9 billion, up from LKR 2.6 billion a year earlier, lifting gearing from 31.6% to 52.1% of owners' equity. The Storex investment was subsequently disclosed at LKR 2.0 billion, so project execution and funding terms matter directly to the balance sheet.
Liquidity also tightened at the last annual filing: the current ratio fell from 2.1 to 1.69, meaning short-term assets, including receivables and unsold items, were LKR 1.69 for each LKR 1 of bills due within a year. Operating cash flow was 0.86 times net profit and free cash flow was negative LKR 1.4 billion, so not all reported profit had arrived as cash after investment spending. Profit before tax plus finance costs covered interest 6.56 times, down from 8.87 times.
As at 20 September 2026, rising domestic yields, a weaker rupee and elevated energy costs formed a less benign funding and equipment-import backdrop. These are sector conditions rather than reported effects on Vidullanka, but they increase the importance of financing discipline for new storage, solar and dendro projects.
Outlook
As at 20 September 2026, the next defined evidence point is the September interim filing, expected between 6 and 14 November 2026. It should show whether project funding has further changed the balance sheet and whether the stronger June profit has carried into the subsequent quarter.
The nearer operating milestones are grid energisation for Ranna and progress on the Storex rollout, beginning with the first commissioned BESS facility. The available disclosures establish capacity and investment scale but not contracted income, tariffs or project-level returns, so they cannot yet quantify the additions to Vidullanka's earnings.