Overview
Vidullanka operates renewable generation, EPC and project-management businesses across hydro, solar and dendro projects, with operations in Sri Lanka and overseas. The important strategic shift is from a mainly generation-led portfolio toward grid storage, transmission execution and new solar and biomass development. That broadens possible income sources, but several projects remain subject to grid connection, award or commissioning milestones.
Price performance
The voting share closed at LKR 22.50 on 25 September 2026. It gained 9.8% over one month while the ASPI fell 1.1%, a period of clear relative strength, but its longer record includes two falls of 15% or more in three years, the deepest 35%, which has not yet recovered.
The share sits 43.4% of the way through its 52-week range and recent volatility is lower than its own one-year norm, while 20-day volume is more than double the prior 60-day pace. Liquidity remains limited: median daily turnover was LKR 968,382, and a LKR 1 million order is more than everything that trades on a typical day (103% of it).
Valuation
At 13.3 times P/E, the voting share costs LKR 13.30 for each LKR 1 of trailing profit, below the power and energy peer median of 27.0 times. Its 2.26 times P/B means LKR 2.26 is paid for each LKR 1 of net assets, however, and sits at the 78th percentile of the sector, so the lower earnings multiple is not matched by a low price relative to book value.
The company is more expensive than at 8 of its last 12 year-ends on P/E and 11 of 12 on P/B. A buyer at the current price is relying materially on the June quarter: it supplied 30.7% of trailing EPS, and the P/E would be 15.3 times if that quarter had earned the year-ago net margin on the same revenue.
The dividend yield is 2.2%. Dividends were LKR 1.58 per share in FY2025 and LKR 0.65 in FY2026; FY2027 currently records LKR 0.20, but that year is incomplete. The LKR 0.20 interim dividend's ex-date was 20 July 2026, so a buyer today does not receive it.
News and sentiment
Company coverage has been unusually heavy, with 18 articles in the past 30 days against a normal monthly baseline of 4.5; 17 of 23 material articles over 90 days were positive and none negative. This is a record of article tone and volume, not evidence of a change in the share price.
The main business developments are the commissioning of the first 10 MW/40 MWh Storex battery facility and a reported portfolio of 13 facilities totalling 130 MW/520 MWh. Vidullanka holds a 49% stake in Storex, so the full portfolio is not wholly attributable to it, and project revenue terms are not disclosed. Separately, its consortium was reported as lowest bidder for a LKR 5.0 billion transmission contract, approximately 1.3 times trailing revenue, but technical evaluation and a formal Letter of Award remain outstanding; the eventual share of contract revenue for Vidullanka is not stated.
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 twelve months to June 2026 nevertheless produced LKR 3.9 billion of revenue, down 21.9% year-on-year, so the latest profit acceleration sits alongside a smaller trailing revenue base.
Gross margin was 73.0%, against 73.1% a year earlier, and ranked a middling third of seven comparable June quarters. The operating margin is unavailable because the operating-profit line was not filed for June. Reported revenue-line net margins of 50.0% and 29.1% for June 2026 and June 2025 are not comparable measures of profitability: LKR 330 million of other operating income lifted June total income, so the appropriate current net margin is 38.5% of total income. This company earns materially outside its revenue line.
Equity reached LKR 10.6 billion at June, while total debt rose to LKR 7.0 billion. The June filing used 1.036 billion shares, compared with 1.038 billion ordinary shares now in issue, so per-share measures from the filing do not represent an unchanged share count.
Risks
Funding is the principal risk. At the latest audited year-end, debt equalled 52.1% of owners' equity, up from 31.6% a year earlier, while total debt had subsequently reached LKR 7.0 billion by June. The expansion into storage, solar and biomass therefore comes with a larger financing burden.
The current ratio fell from 2.10 to 1.69, meaning the company had LKR 1.69 of short-term assets, including receivables and unsold items, for each LKR 1 of bills due within a year. Operating cash flow was only 0.86 times annual net profit in FY2026 and free cash flow was negative LKR 1.4 billion, compared with positive LKR 2.4 billion a year earlier, so accounting profit was not fully converted into cash after investment spending.
Finance-cost coverage, measured on profit before tax with finance costs added back, declined from 8.87 to 6.56 times. Rising domestic yields and global funding pressure form a less accommodating backdrop for a business funding multiple projects, although the supplied data does not quantify Vidullanka's refinancing schedule.
Outlook
As at 25 September 2026, the next dated information event is the September interim filing, expected between 6 and 14 November. It will supersede the June figures and show whether profit growth is being sustained while revenue remains below the prior trailing period.
The other key company-specific developments are not yet resolved: the transmission contract requires technical clearance and a Letter of Award, while the completed 10 MW Ranna solar project awaits grid energisation. The available data cannot establish the earnings contribution, funding requirement or timing of either development.