Overview
Vidullanka develops and operates renewable power assets, while also undertaking EPC, engineering and project-delivery work. Its operating portfolio spans hydro, solar and dendro generation in Sri Lanka and overseas.
The most important reported change is the sharp increase in June-quarter profit, alongside investment in solar, biomass and battery storage projects. That broadens the sources of future activity, but also leaves the group carrying materially more project funding than a year earlier.
Price performance
The voting share closed at LKR 22.60 on 24 September 2026. It gained 9.8% over one month while the ASPI fell 1.3%, leaving recent performance ahead of the broader market over that window.
The price sat 43.9% of the way through its 52-week range. Sixty-day volatility was 46.1% below its own one-year norm, while trading volume was more than double the preceding 60-day pace. Liquidity remains limited: a LKR 1 million order is more than everything that trades on a typical day. The three-year record includes two falls of 15% or more, with the deepest still unrecovered.
Valuation
At 13.4 rupees for every rupee of trailing earnings, the P/E is below the power and energy peer median of 27.31 times. The P/B of 2.27 means the market values the voting share at LKR 2.27 for each rupee of net assets, above the sector median of 1.8 times; its 78th percentile sector position makes book value the relatively demanding part of the valuation. Trailing ROE was 16.9%, which helps explain a premium to book rather than making it a standalone warning.
The company is fairly valued on the market-wide measure, scoring 44 out of 100 across earnings, book value and dividends. Its own record is less forgiving: the share is more expensive on P/E than at 8 of 12 recorded year-ends and on P/B than at 11 of 12. A buyer at the current price is relying partly on the June quarter, which supplied 30.7% of trailing EPS; at its year-ago net margin, the P/E would be 15.3 times rather than 13.4 times.
The 2.2% dividend yield trails the sector median of 3.9%. Dividends per share were LKR 1.58 in FY2025 and LKR 0.65 in FY2026, while FY2027 currently contains one LKR 0.20 interim payment and is incomplete. The latest dividend's ex-date has passed, so a buyer today does not receive it.
News and sentiment
Coverage has been unusually heavy, with 16 articles in the past 30 days against a normal monthly rate of 4.2. Of 21 material articles over 90 days, 16 were positive and none negative, although article tone is not evidence of business performance.
On 22 and 23 September, reports said a Vidullanka-led consortium was the lowest bidder for a LKR 5.0 billion transmission-line contract, subject to technical evaluation and a Letter of Award. The contract is about 1.3 times the group's reported twelve-month revenue, but Vidullanka's consortium share and economics were not disclosed, so its earnings contribution cannot yet be sized.
Reports on 18 September also described commissioning of the first 10 MW/40 MWh battery storage facility in the Storex portfolio. Vidullanka has committed about LKR 2.0 billion for a 49% interest in Storex, while a reported 10 MW Ranna solar project was complete but awaiting grid energisation as at 3 September.
Financials
June-quarter revenue rose 7.5% year-on-year to LKR 1.1 billion, while net profit increased 84.5% to LKR 556 million. The profit rise was much faster than revenue growth, so the quarter improved the earnings backing each share, but it also accounts for a large share of the trailing result.
Gross margin was 73.0%, versus 73.1% a year earlier, and ranked third of the last seven June quarters. Operating margin is unavailable in the latest filing. The standard revenue-based net margin should not be used because LKR 330 million of other operating income was material; on total income, net margin was 38.5%. This means the June result reflects income outside the revenue line as well as power and service revenue.
For the twelve months to June 2026, revenue was LKR 3.9 billion, down 21.9% year-on-year, despite trailing ROE of 16.9%. Equity reached LKR 10.6 billion at June, and the balance-sheet filing used 1.036 billion shares, compared with 1.038 billion shares in issue today. No newer financial result has been reported after the June filing.
Risks
The leading risk is balance-sheet strain from project funding. Total debt rose to LKR 7.0 billion at June 2026, from LKR 3.4 billion a year earlier, while cash fell to LKR 891 million. The latest audited annual balance sheet showed gearing of 52.1% of owners' equity, meaning debt equalled about 52 cents for each rupee belonging to ordinary shareholders.
Liquidity has weakened from the prior year. The current ratio fell to 1.69 from 2.1, meaning short-term assets, including receivables and unsold items, covered bills due within a year by LKR 1.69 for every LKR 1.00 owed. Annual free cash flow was negative LKR 1.4 billion after positive LKR 2.4 billion previously, reflecting investment demands.
Interest cover measured on profit before tax with finance cost added back declined to 6.56 times from 8.87 times. Broader Treasury bill yields had risen as at 24 September 2026, an external funding backdrop that matters more while the company is expanding capital-intensive projects.
Outlook
As at 24 September 2026, the next material scheduled event is the September interim filing, expected between 6 and 14 November. It will show whether the June profit uplift, project spending and debt increase continued into the next quarter.
The nearer operating milestones are grid energisation of the completed Ranna solar project and the formal outcome of the transmission-line bid. The available data do not disclose Ranna's tariff or Vidullanka's share of consortium revenue, so they cannot yet establish the earnings effect of either project. Battery-storage concessions announced for the power sector form a supportive operating backdrop, but their company-specific financial effect is not disclosed.