Overview
WindForce owns and operates renewable power assets while also providing EPC and O&M services across wind, solar, hydro and battery storage. The key business change is a larger development pipeline: IFC-backed solar and battery projects add to the group’s renewable generation and storage activities, but require capital before their earnings contribution is visible in reported results.
Price performance
The share fell 10.1% over three months while the ASPI fell 1.7%, although its 50.9% one-year gain remains well ahead of the index’s 1.3%. The valuation figures in this analysis use the LKR 40.00 close on 15 September 2026.
The price sits halfway through its 52-week range, 24.4% below its high, while 60-day volatility is 53.0% below its own one-year norm despite 20-day volume running 43.7% higher than the prior 60-day level. The three-year record shows one fall of 15% or more, the deepest 27%, which has not yet recovered.
Median daily turnover was LKR 3.0 million. A LKR 1 million order is about 33% of what trades on a typical day, a large part of a day’s trading.
Valuation
At 35.7 times P/E, the market asks 35.7 rupees for every rupee of trailing profit, against a sector median of 18.9 times. Its P/B of 2.07 means paying just over two rupees for each rupee of net assets, above the sector median of 1.80, while trailing ROE was 5.8%.
The P/E is more expensive than every day before 2026 and all but 90 days since April 2021; P/B is more expensive than 81% of days since April 2021. The company sits in the more expensive quarter of sector P/E observations and above two-thirds of peers on P/B, so the price is demanding relative both to peers and to WindForce’s own record.
A buyer at this price is relying heavily on the latest quarter: it supplied 49.9% of trailing EPS. Had that quarter earned its year-ago net margin, the same price would represent 32.9 times earnings rather than 35.7 times. No trailing dividend yield is recorded; dividends were LKR 1.00 per share in both FY2025 and FY2024.
News and sentiment
Company coverage was normal over 90 days, with seven material articles split between two positive, four negative and one neutral. Activity then became unusually quiet, with one article in the last 30 days against WindForce’s usual monthly rate of 4.2.
Reported on 15 September, the company postponed its proposed LKR 4.0 billion debenture issue after market interest rates rose. Earlier reports documented IFC financing of up to USD 18 million for the 100MW Siyambalanduwa solar project and battery investments, and a LKR 1.7 billion, 15-year Panadura BESS award.
Financials
June-quarter revenue grew 23.4% year-on-year, but operating profit grew 10.1% and net profit only 5.1%, so profit expanded more slowly than sales. The gap between operating and net profit was a LKR 240 million drag from finance costs, tax, associates and other below-the-line items.
Gross margin was 55.7% versus 61.8% a year earlier, operating margin was 42.5% versus 47.7%, and net margin was 33.4% versus 39.2%. The gross and net margins were each the worst of six comparable June quarters, while operating margin ranked among the worst, showing that the higher revenue did not preserve prior June profitability.
Equity reached LKR 32.1 billion, while the filing used 1.35 billion shares outstanding. Minority shareholders received LKR 112 million of June-quarter profit, so group net profit is not wholly attributable to the shares being valued.
Risks
Funding and leverage are the main risks. At the latest audited year-end, debt was LKR 12.4 billion, equal to 48.9% of equity attributable to owners, and operating profit covered interest only 2.72 times. This leaves less room for financing costs to rise while WindForce funds solar and storage construction; the subsequent withdrawal of the proposed LKR 4.0 billion debenture removes one identified funding route.
The current ratio was 2.79, meaning the group had LKR 2.79 of short-term assets, including receivables and other current assets, for each rupee of bills due within a year. However, operating cash flow equalled only 0.55 times operating profit and free cash flow was negative, so audited profit was not fully arriving as cash after investment spending.
Margin risk is also material: June net margin was the worst of six comparable June prints. Higher global oil prices and a weaker rupee are a power-sector backdrop as at 15 September 2026, but the supplied data does not quantify their direct effect on WindForce.
Outlook
As at 15 September 2026, the next scheduled evidence is the September interim filing, expected between 6 and 14 November. It should update earnings after the June margin compression and show the balance-sheet effect of ongoing project funding.
The other central issue is execution of the IFC-backed 100MW solar development and battery portfolio. The available data confirms financing and awards, but does not state commissioning dates, contracted tariffs or the profit contribution from these projects.