Overview
WindForce owns and operates renewable power assets while also providing EPC and O&M services across wind, solar and small hydro. Its portfolio is expanding into utility-scale solar and battery storage, with local and overseas assets giving the group broader exposure than a single-plant generator.
The latest quarter showed continued top-line expansion, but the quality of that growth weakened: revenue advanced faster than operating and net profit, while June margins ranked poorly against the company's own comparable history.
Price performance
The share closed at LKR 39.20 on 25 August 2026. It fell 17.2% over three months while the ASPI declined 4.8%, but remained up 47.0% over one year against the index's 6.8% gain.
The price sat around the middle of its 52-week range. Recent volatility was below WindForce's own one-year norm, and 20-day volume was also running below its recent average, so the three-month decline occurred during quieter trading rather than unusually active turnover. No company news in the last 30 days accounts for the move.
Valuation
WindForce trades at a P/E of 35.02, well above the power and energy sector median of 14.51 and at the 88th sector percentile. Its P/B of 2.03 is only moderately above the sector median of 1.80, while annual ROE was 6.1%, providing limited earnings support for the premium earnings multiple.
The dividend yield was 2.5%, below the sector median of 3.1%. The payout has not shown a rising direction in the available record: dividends per share were LKR 1.00 in FY2025 and FY2024, compared with LKR 1.30 in FY2022 across two payments. No dividend is recorded for FY2023.
News and sentiment
Company coverage was normal over the 90-day window, with 9 material articles split between 4 positive, 4 negative and 1 neutral items. The flow then became unusually quiet: there were no articles in the last 30 days against a baseline of 4.5 per month.
The substantive developments were positive. IFC financing of up to US$18 million supports the 100MW Siyambalanduwa solar project and related storage investment, while WindForce and Vidullanka won a government BESS programme covering 13 substations. The latest confirmed dividend had an ex-date of 25 February 2025 and a payment date of 18 March 2025.
Financials
For the quarter ended 30 June 2026, revenue rose 23.4% year-on-year to LKR 2.62 billion, while operating profit grew 10.1% and net profit grew 5.1%. Operating profit reached LKR 1.11 billion and net profit LKR 875 million, but the slower profit growth shows that expansion did not translate fully below the operating line; the below-line drag was LKR 240 million.
All latest-quarter figures are on the group basis and are comparable with June 2025. Gross margin narrowed from 61.8% to 55.7%, operating margin from 47.7% to 42.5%, and net margin from 39.2% to 33.4%. Gross and net margins were each the worst of six comparable June quarters, while operating margin ranked fifth of six.
The twelve months to 30 June 2026 produced revenue of LKR 8.54 billion, up 14.4%, but net margin was 24.8% and net profit for the audited year ended 31 March 2026 had fallen 4.4%. Equity attributable to owners was LKR 26.15 billion in the latest quarter, and shares outstanding were 1.355 billion versus 1.351 billion in June 2025, so the small share-count increase should be considered when reading per-share results. The July 2026 project news is later than these filings, making the quarter's financials historical.
Risks
The main risk is financing strain if project expansion outpaces internally generated cash. At 31 March 2026, gearing was 48.9% of owners' equity and interest cover was 2.72 times, leaving finance costs material relative to operating profit.
Liquidity was comfortable on the reported current ratio of 2.79, but cash conversion was only 0.55 times and free cash flow was negative LKR 216 million. This means the audited year's profit did not arrive fully as operating cash. Minority shareholders received 28.4% of group profit, so group net profit and the earnings attributable to WindForce shareholders are not the same pool of money.
Outlook
As at 25 August 2026, the next defined event is the quarter ending 30 September 2026, with the filing expected between 10 November 2026 and 19 January 2027. That filing is the first opportunity to assess whether the June margin weakness was confined to one quarter or continued after the solar and storage expansion news.
The operating setting is mixed. Sri Lanka has approved new renewable feed-in tariffs and battery-storage purchase rates, while an ADB-backed power-grid modernisation project is under way. At the same time, higher energy costs remain an inflation risk and can complicate project economics. The current data cannot establish the profitability or cash returns of the newly financed projects.