Overview
Vidullanka operates renewable generation, EPC and project-delivery businesses across hydro, solar and dendro power, alongside international operations. The important change is a broadening beyond generation: the group has entered grid-scale battery storage and is pursuing transmission construction, adding development and execution exposure alongside power production.
Price performance
At LKR 22.40 on 22 September 2026, the voting share had gained 7.2% over one month while the ASPI fell 1.6%. It stood 43.0% through its 52-week range, rather than near either extreme; recent volatility was below its own one-year norm while trading volume was above its recent norm.
The three-year record contains two falls of 15% or more, the deepest 35%, which has not yet recovered. Liquidity is limited: a LKR 1 million order is more than everything that trades on a typical day (104% of it), so that order represents a large part of a normal session.
Valuation
The voting line trades on 13.3 rupees for every rupee of trailing profit, below the sector median of 27.3 times and at the 38th percentile among the nine peers with P/E data. Its P/B is 2.25 times, meaning LKR 2.25 paid for each rupee of net assets, above the sector median of 1.80 and at the 78th percentile of the ten peers. The higher P/B sits alongside a 16.9% trailing return on equity, so it is not a book-value signal in isolation.
Against its own record, the P/E is more expensive than at eight of 12 year-ends and the P/B than at 11 of 12. A buyer at this price is relying on a strong June quarter: it supplied 30.7% of trailing EPS, and at its year-ago margin the P/E would be 15.2 times rather than 13.3. The 2.2% yield trails the sector median, while dividends per share fell from LKR 1.58 in FY2025 to LKR 0.65 in FY2026; FY2027 is incomplete at LKR 0.20 so far.
News and sentiment
Coverage has been unusually heavy, with 15 articles in the last 30 days against a normal monthly rate of four; 15 of 20 material articles over 90 days were positive and none negative. This is activity around disclosed projects rather than evidence about the share price.
Reported on 22 September, a Vidullanka consortium was the lowest bidder for a LKR 5.0 billion, 18-month transmission project, subject to technical clearance and a Letter of Award. The contract exceeds the group's LKR 3.9 billion trailing revenue, but its share of consortium revenue and profit has not been disclosed. The first Storex battery facility was grid-connected on 18 September, while the Ranna solar project was reported ready but awaiting grid energisation.
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. The quarter's net profit was the highest of seven comparable June quarters, so the improvement was not merely a weak-base comparison. The twelve months to June recorded LKR 3.9 billion of revenue, down 21.9%, meaning the latest quarter has not yet restored the trailing revenue base.
Gross margin was 73.0%, versus 73.1% a year earlier. Operating margin is unavailable from the latest filing. The reported 50.0% revenue-based net margin is not comparable because LKR 330 million of other operating income materially supplements the revenue line; on total income, the net margin was 38.5%. The latest filing therefore shows a sharp profit increase, but part of the earnings base sits outside stated revenue.
Equity increased to LKR 10.6 billion from LKR 8.5 billion a year earlier. Shares outstanding on the latest balance sheet were 1.04 billion, versus 1.03 billion a year earlier, a modest change that does not alter the absolute-profit reading. Minority interests received 3.9% of annual profit, so most group earnings remained attributable to the ordinary shares being valued.
Risks
The principal risk is the funding burden of expansion. Annual debt was LKR 4.9 billion, equal to gearing of 52.1% of owners' equity. Profit before tax plus finance cost covered the interest bill 6.56 times, which provides coverage but is lower than the prior year's level.
The current ratio was 1.69 times, meaning current assets, including receivables and unsold items, exceeded bills due within a year but with less headroom than a larger buffer. Operating cash flow was 0.86 times annual net profit and free cash flow was negative LKR 1.4 billion, so reported profit did not fully arrive as cash after investment spending. The pending transmission award and projects awaiting grid connection add execution and timing exposure.
Outlook
As at 22 September 2026, the next scheduled evidence is the September interim filing, expected between 6 and 14 November. It should show whether the newly commissioned storage facility, solar grid connection and development spending are beginning to affect the reported business; it can also reveal whether debt and cash generation remain the main constraint.
The potential transmission award is separately material because it would add EPC work, but the available disclosure does not state Vidullanka's revenue share or margin. The data also cannot establish when the Ranna project will be energised or when its output will contribute to earnings.