Interim Financial Statements for the Quarter ended 31st December 2025

HARISCHANDRA MILLS PLC

INTERIM FINANCIAL STATEMENTS

For the nine months ended 31 December 2025

Registration No.

PQ 225

Board of Directors

Bandaranayake T.K. (Chairman)

Samarasinghe S.N. (Managing Director)

De Silva G.S.V.

De Silva M.P. (Mrs.)

Jayasundara S. A S.

Samarasinghe R.K (Mrs.)

Kobbekaduwa R. (Mrs.)

Sudath Kumar G.K

Wickremasinghe L.L.S

Date of incorporation

9th January 1953

Registered office

No. 11, C.A.Harischandra Mawatha, Matara.

Legal form

A Public Company with Limited Liability

incorporated in Sri Lanka, whose shares

are Listed in the Colombo Stock Exchange.

Subsidiary company

Harischandra Mills (Distributors) Limited

(wholly owned) incorporated in Sri Lanka

Secretaries

Corporate Services (Pvt) Limited.

216, De Saram Place,

Colombo 10

Remuneration Committee

Sudath Kumar G.K (Chairman)

Bandaranayake T.K.

Kobbekaduwa R. (Mrs.)

Auditors

KPMG

(Chartered Accountants)

32A, Sir Mohamed Macan Markar Mawatha,

Colombo 3.

Audit & Risk Management Committee

Wickremasinghe L.L.S (Chairman)

Sudath Kumar G.K

Bandaranayake T.K.

Kobbekaduwa R. (Mrs.)

Internal auditors

Ernst & Young

(Chartered Accountants)

201, De Saram Place,

Colombo 10

Related Party Transactions Review Committee

Wickremasinghe L.L.S (Chairman)

Sudath Kumar G.K

Bandaranayake T.K.

Kobbekaduwa R. (Mrs.)

Samarasinghe S.N.

Legal advisors

F J & G De Saram

Attorneys - at - Law

216, De Saram Place,

Colombo 10

Nomination and Governance Committee

Sudath Kumar G.K (Chairman)

Bandaranayake T.K.

Kobbekaduwa R. (Mrs.)

HARISCHANDRA MILLS PLC

INTERIM FINANCIAL STATEMENTS

For the nine months ended 31 December 2025

INCOME STATEMENT

GROUP

Quarter Ended

31 December

Nine Months Ended

31 December

Year Ended

31 March

(Audited)

2025

Rs. '000

6,321,658

2025

Rs. '000

1,788,931

2024

Rs. '000

1,630,841

VARIANCE

%

10

2025

Rs. '000

4,922,873

2024

Rs. '000

4,721,291

VARIANCE

%

4

Gross profit

349,871

Other income

14,841

907,794

46,964

907,825

18,893

Administrative expenses

(147,335)

Selling & distribution expenses

(109,124)

Result from operating activities

108,253 69,567

Finance income

12,618 9,812

Finance expenses

(4,254) (2,177)

Net finance income/(expenses)

8,364 7,635

29

36,250 32,719

(95)

(8,264) (9,251)

10

27,986 23,468

11

43,476

11

(10,654)

19

32,822

Profit/(Loss) from ordinary activities before tax

116,617

Income tax expenses

(24,549)

Profit/(Loss) after taxation attributable to

shareholders of Harischandra Mills PLC

92,068

54,041

Rs.

47.96

Rs.

28.15

Rs.

92.61

Rs.

75.15

Rs.

131.83

Notes :

The above figures are provisional and subject to audit.

Figures in brackets indicate deductions.

All values are in Rs.'000, unless otherwise stated.

HARISCHANDRA MILLS PLC

INTERIM FINANCIAL STATEMENTS

For the nine months ended 31 December 2025

STATEMENT OF COMPREHENSIVE INCOME

GROUP

Quarter Ended

31 December

Nine months ended

31 December

2024

Rs. '000

54,041

Year Ended

31 March

(Audited)

2025

Rs. '000

253,064

2024

Rs. '000

144,258

2025

Rs. '000

92,068

2025

Rs. '000

177,778

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

(17,367)

5,210

(12,157)

Total comprehensive income for the period

92,068

54,041

70

177,778

144,258

23

240,907

Notes :

The above figures are provisional and subject to audit.

Figures in brackets indicate deductions.

All values are in Rs.'000, unless otherwise stated.

HARISCHANDRA MILLS PLC

INTERIM FINANCIAL STATEMENTS

As at 31 December 2025

STATEMENT OF FINANCIAL POSITION

GROUP

As at

31.12.2025

As at

31.12.2024

As at

31.03.2025

(Audited)

Rs. '000

ASSETS

Non-current assets

Property, plant & equipment

Intangible assets

Right of use asset

Deferred tax asset

Total non-current assets

1,105,417

880,901

895,805

1,102

596

1,449

-

8,655

4,945

9,678

-

3,211

1,116,197

890,152

905,410

Current assets

Inventories

Trade and Other Receivables

Investment in unit trusts

Investment in Fixed Deposits

Cash & bank balances

Total current assets

Total assets

539,425 502,691 474,958

627,664 611,198 618,395

34,041 139,615 142,430

626,673 511,482 487,611

53,901 49,001 131,348

1,881,704 1,813,987 1,854,742

2,997,901 2,704,139 2,760,152

EQUITY & LIABILITIES

Equity

Stated capital

Other capital reserves

General Reserve

Retained earnings

Total equity attributable to equity holders of the company

105,578 105,578 105,578

7,011 7,011 7,011

12,841 12,841 12,841

1,726,220 1,604,725 1,702,010

1,851,650 1,730,155 1,827,440

Non Current Liabilities

Deferred tax liabilities

Employee benefit obligation

Total non current liabilities

- 28,706 -

234,531 190,925 206,381

234,531 219,631 206,381

Current Liabilities

Trade and Other Payables

Provision for taxation

Bank overdraft

Total current liabilities

Total liabilities

Total equity & liabilities

705,573 596,702 569,619

24,863 14,747 60,598

181,284 142,904 96,114

911,720 754,353 726,331

1,146,251 973,984 932,712

2,997,901 2,704,139 2,760,152

Notes:

The above figures are provisional and subject to audit.

All values are in Rs.'000, unless otherwise stated.

Rs.

964.60

…………………………………..

C.T.Gajanayake - Chief Financial Officer

…………………………………

S.N.Samarasinghe

Managing Director

06 February 2026

……………………………….

G.S.V.De Silva

Director

HARISCHANDRA MILLS PLC

INTERIM FINANCIAL STATEMENTS

For the nine months ended 31 December 2025

INCOME STATEMENT

COMPANY

Quarter Ended

31 December

Nine months ended

31 December

Year Ended

31 March

(Audited)

2025

Rs. '000

2025

Rs. '000

VARIANCE

%

2025

Rs. '000

2024

Rs. '000

VARIANCE

%

1,245,949

26,521

92,068

Rs.

47.96

54,088

Rs.

28.18

177,778

Rs.

92.61

145,017

Rs.

75.55

255,631

Rs.

133.17

Finance income

Finance expenses

Net finance income

12,618

9,812

(4,254)

(2,177)

8,364

7,635

29

36,250 32,719

(95)

(8,264) (9,251)

10

27,986 23,468

11

43,476

11

(10,654)

19

32,822

Profit/(Loss) from ordinary activities before tax

116,617

77,268

51

251,149

206,686

22

352,767

Income tax expenses

(24,549)

(23,180)

6

(73,371)

(61,669)

19

(97,136)

Profit/(Loss) after taxation attributable to shareholders of Harischandra Mills PLC

Basic/Diluted Earnings per Share

Notes :

The above figures are provisional and subject to audit.

Figures in brackets indicate deductions.

All values are in Rs.'000, unless otherwise stated.

HARISCHANDRA MILLS PLC

INTERIM FINANCIAL STATEMENTS

For the nine months ended 31 December 2025

STATEMENT OF COMPREHENSIVE INCOME

COMPANY

Quarter Ended

31 December

Nine months ended

31 December

Year Ended

31 March

(Audited)

2025

Rs. '000

255,631

2025

Rs. '000

92,068

-

-

-

2024

Rs. '000

54,088

2025

Rs. '000

177,778

2024

Rs. '000

145,017

VARIANCE

%

23

Profit/(Loss) for the period

Other comprehensive income will not be reclassified to income

statement in subsequent periods

Actuarial loss from Re- measurement of employee

benefit obligation

Related Taxes

Other comprehensive income for the period

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

(17,367)

5,210

(12,157)

Total comprehensive income for the period

92,068

54,088

70

177,778

145,017

23

243,474

Notes :

The above figures are provisional and subject to audit.

Figures in brackets indicate deductions.

All values are in Rs.'000, unless otherwise stated.

HARISCHANDRA MILLS PLC

INTERIM FINANCIAL STATEMENTS

As at 31 December 2025

STATEMENT OF FINANCIAL POSITION

COMPANY

ASSETS

Non-current assets

Property, plant & equipment

Intangible assets

Right of use asset

Deferred tax asset

Total non-current assets

Current assets

Inventories

Trade and Other Receivables

Investment in unit trusts

Investment in Fixed Deposits

Cash & bank balances

Total current assets

Total assets

EQUITY & LIABILITIES

Equity

Stated Capital

Other capital reserves

General Reserve

Retained earnings

Total equity attributable to equity holders of the

company

Non current liabilities

Deferred liabilities

Employee benefit obligation

Total non current liabilities

Current liabilities

Trade and Other Payables

Provision for taxation

Bank overdraft

Total current liabilities

Total liabilities

Total equity & liabilities

Notes:

The above figures are provisional and subject to audit.

All values are in Rs.'000, unless otherwise stated.

As at

31.12.2025

As at

31.12.2024

1,105,417

880,901

895,805

1,102

596

1,449

-

8,655

4,945

9,678

-

3,211

1,116,197

890,152

905,410

539,425

502,691

474,958

627,664

611,198

618,395

34,041

139,615

142,430

626,673

511,482

487,611

53,856

48,956

131,303

1,881,659

1,813,942

1,854,697

2,997,856

2,704,094

2,760,107

105,578

105,578

105,578

11

11

11

12,841

12,841

12,841

1,733,475

1,610,172

1,709,265

1,851,905

1,728,602

1,827,695

-

28,706

-

234,531

190,925

206,381

234,531

219,631

206,381

705,273

596,264

569,319

24,863

16,693

60,598

181,284

142,904

96,114

911,420

755,861

726,031

1,145,951

975,492

932,412

2,997,856

2,704,094

2,760,107

Rs.

964.73

Rs.

900.50

Rs.

952.12

…………………………………..

C.T.Gajanayake - Chief Financial Officer

…………………………………

S.N.Samarasinghe

Managing Director

06 February 2026

……………………………….

G.S.V.De Silva

Director

Stated Capital

Other Capital Reserves

General Reserves

Retained Earnings

Total Equity

Stated Capital

Other Capital Reserves

General Reserves

Retained Earnings

Total Equity

Rs.'000

Rs.'000

Rs.'000

Rs.'000

Rs.'000

Rs.'000

Rs.'000

Rs.'000

Rs.'000

Rs.'000

105,578

7,011

12,841

1,702,010

1,827,440

105,578

7,011

12,841

1,614,035

1,739,465

-

-

-

177,778

177,778

-

-

-

144,258

144,258

-

-

-

(76,784)

(76,784)

-

-

-

(76,784)

(76,784)

-

-

-

(76,784)

(76,784)

-

-

-

(76,784)

(76,784)

105,578

7,011

12,841

1,726,220

1,851,650

105,578

7,011

12,841

1,604,725

1,730,155

105,578

11

12,841

1,709,265

1,827,695

105,578

11

12,841

1,618,723

1,737,153

-

-

-

177,778

177,778

-

-

-

145,017

145,017

-

-

-

(76,784)

(76,784)

-

-

-

(76,784)

(76,784)

-

-

-

(76,784)

(76,784)

-

-

-

(76,784)

(76,784)

105,578

11

12,841

1,733,475

1,851,905

105,578

11

12,841

1,610,172

1,728,602

HARISCHANDRA MILLS PLC

INTERIM FINANCIAL STATEMENTS

For the nine months ended 31 December 2025

CASH FLOW STATEMENTS

Nine months ended 31 December

Nine months ended 31 December

2025

2024

Company

Group

Company Group

Rs. '000

Rs. '000

Rs. '000 Rs. '000

Cash flows from operating activities

Net profit before taxation

Adjustment for

Provision for gratuity (Net of Payment)

Depreciation & amortization

Net interest income

Change in fair value of unit trusts

(Profit)/Loss on sale of property, plant & equipment

Operating profit before working capital changes

Change in working capital

Change in inventories

Change in receivables

Change in payables

Cash generated from operations

Income tax paid

Net cash flows from operating activities

28,150

28,150

16,986

16,986

76,481

76,481

73,413

73,413

(27,986)

(27,986)

(23,468)

(23,468)

(3,611)

(3,611)

(4,164)

(4,164)

(28,634)

(28,634)

(1,312)

(1,312)

295,549

295,549

268,141

268,019

(64,467)

(64,467)

11,413

11,413

(9,269)

(9,269)

86,981

86,981

135,955

135,955

(34,405)

(34,283)

357,768

357,768

332,130

332,130

(115,574)

(115,574)

(57,887)

(57,887)

242,194

242,194

274,243

274,243

Cash flows used in investing activities

Interest received (net)

Proceeds from sale of property, plant & equipment

Acquisition of property, plant & equipment

Investment in Unit Trusts

Net cash used in investing activities

27,986

27,986

23,468

23,468

28,646

28,646

1,923

1,923

(280,813)

(280,813)

(74,019)

(74,019)

112,000

112,000

(65,001)

(65,001)

(112,181)

(112,181)

(113,629)

(113,629)

Cash flows used in financing activities

Dividend paid

Net cash used in financing activities

(153,568)

(153,568)

(153,568)

(153,568)

(153,568)

(153,568)

(153,568)

(153,568)

Net increase/(decrease) in cash & cash equivalents

Cash & Cash equivalents at the beginning

Cash & Cash equivalent at the end

(23,555)

(23,555) 7,046 7,046

522,800

522,845 410,488 410,533

499,245

499,290 417,534 417,579

Analysis of Cash & Cash Equivalents

Cash in Hand

Short Term Deposits

Bank Overdrafts

53,856

53,901 48,956 49,001

626,673

626,673 511,482 511,482

(181,284)

(181,284) (142,904) (142,904)

499,245

499,290 417,534 417,579

`

Notes :

The above figures are provisional and subject to audit.

Figures in brackets indicate deductions.

All values are in Rs.'000, unless otherwise stated.

HARISCHANDRA MILLS PLC

INTERIM FINANCIAL STATEMENTS

For the nine months ended 31 December 2025

1.

Basis of preparation

The Interim financial statements have been prepared in compliance with Sri Lanka Accounting Standard - LKAS 34- Interim Financial Reporting. These Interim condensed Financial Statements do not include all the information and disclosures required in the Financial Statements and should be read in conjunction with the annual financial statements for the

year ended 31 March 2025.

2.

The presentation and classification of figures for the corresponding period of the previous year have been rearranged, where relevant, to be comparable with those for the current

period.

3

The Company did not have any Contingent Liabilities outstanding and contingent assets as at the Balance Sheet date.

4

Final dividend of Rs. 40.00 per share was paid on 12 September 2025 for the financial year ended 31 March 2025

GROUP

Quarter ended

Nine months ended

5

Industry segments analysis of turnover

31.12.2025

31.12.2024

31.12.2025

31.12.2024

Food products

1,320,738

1,196,212

3,562,682

3,381,324

Soap products

204,705

177,881

575,163

542,259

Fuel & Lubricants

263,488

256,748

785,028

797,708

1,788,931

1,630,841

4,922,873

4,721,291

6

Segment information

For the Nine months ended 31 December

Food products

2025

2024

Rs. '000

Rs. '000

3,562,682

3,381,324

184,495

103,448

`

Soap

2025

2024

Rs. '000

Rs. '000

575,163

542,259

(8,053)

58,290

Fuel & Lubricants

2025

2024

Rs. '000

Rs. '000

785,028

797,708

(243)

2,465

Total

2025

2024

Rs. '000

Rs. '000

4,922,873

4,721,291

176,199

164,203

46,964

18,893

27,986

23,468

251,149

206,564

(73,371)

(62,306)

177,778

144,258

Consolidated turnover

Segmental operating profit/(loss)

Other operating income

Net finance income

Profit before taxation

Income tax expenses

Profit after taxation

Segments information

For the quarter ended 31 December

Food products

2025

2024

Rs. '000

Rs. '000

1,320,738

1,196,212

97,646

50,290

Soap

2025

2024

Rs. '000

Rs. '000

204,705

177,881

(4,371)

13,635

Fuel & Lubricants

2025

2024

Rs. '000

Rs. '000

263,488

256,748

137

140

Total

2025

2024

Rs. '000

Rs. '000

1,788,931

1,630,841

93,412

64,065

14,841

5,502

8,364

7,635

116,617

77,202

(24,549)

(23,161)

92,068

54,041

Consolidated turnover

Segmental operating profit/(loss)

Other operating income

Net finance income

Profit before taxation

Income tax expenses

Profit after taxation

HARISCHANDRA MILLS PLC

INTERIM FINANCIAL STATEMENTS

For the nine months ended 31 December 2025

Notes to the interim financial statements

7

Stated capital and number of shares

COMPANY

as at

as at

as at

31.12.2025

31.12.2024

31.03.2025

Stated capital (Rs.)

No of shares (Nos.)

105,578,000

1,919,600

105,578,000

1,919,600

105,578,000

1,919,600

8

Market price recorded during the period

Highest price (Rs.)

Lowest price (Rs.)

Closing price (Rs.)

as at

31.12.2025

Rs.

11,020.25

3,300.00

5,090.25

as at

31.12.2024

Rs.

4,099.25

3,900.00

3,955.25

as at

31.03.2025

Rs.

4,198.00

3,600.00

4,000.00

Notes :

The above figures are provisional and subject to audit.

Figures in brackets indicate deductions.

All values are in Rs.'000, unless otherwise stated.

HARISCHANDRA MILLS PLC

INTERIM FINANCIAL STATEMENTS

For the nine months ended 31 December 2025

ADDITIONAL NOTES:

9

Twenty largest shareholders of the company

As at

31.12.2025

Shareholder's name

No. of Shares

%

30.09.2025

No. of Shares

%

1

Hayleys PLC

2

Upeka de Silva

3

Chitra Padmini Rodrigo

4

Samarasinghe N.T.

5

Senaka Nilkantha Samarasinghe

6

Nanditha Rodrigo

7

Satyajit Arjuna Rodrigo

8

D.H.C.Ekanayake

9

A G I Selvaraj

10

H.D. Wijayanandana

11

M P de Silva

12

Chandra Sigamoney

13

C.J.Wijayawardana

14

Jayantha D

15

D.P.Navaratnam

16

Ramani Kamala Samarasinghe

17

H.A.Abeysekera

18

D.A.Jayasinghe

19

Estate of Mohommed Rafeek

20

Seyed Hamid Mohamed Kaleel

778,946

40.58%

286,936

14.95%

278,920

14.53%

266,920

13.90%

76,670

3.99%

30,736

1.60%

30,736

1.60%

28,292

1.47%

27,014

1.41%

24,543

1.28%

5,000

0.26%

4,494

0.23%

3,825

0.20%

3,800

0.20%

3,449

0.18%

3,200

0.17%

2,800

0.15%

2,720

0.14%

2,668

0.14%

2,501

0.13%

-

-

286,936

14.95%

278,920

14.53%

266,920

13.90%

76,670

3.99%

30,736

1.60%

30,736

1.60%

28,292

1.47%

27,014

1.41%

24,760

1.29%

5,000

0.26%

4,494

0.23%

4,321

0.23%

3,800

0.20%

3,502

0.18%

3,200

0.17%

2,800

0.15%

2,720

0.14%

2,668

0.14%

2,536

0.13%

10

Public Holding

As at

No. of Shares

Percentage

Total No. of shareholders who hold public holding

31.12.2025

1,053,784

54.90%

867

30.09.2025

1,052,529

54.83%

621

11

Directors Share Holding

As at

Name of Director

Mrs. R.K. Samarasinghe

Mr. S.N. Samarasinghe (CEO/MD)

Mrs. M.P.De Silva

Mr. G.S.V. De Silva

Mrs.R.Kobbekaduwa

Mr. S.A.S. Jayasundara

Mr.T.K.Bandaranayake

Mr.G.K.Sudath Kumar

Total

3,200

0.17%

3,200

0.17%

76,670

3.99%

76,670

3.99%

5,000

0.26%

5,000

0.26%

2,000

0.10%

2,000

0.10%

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

86,870

4.52%

86,870

4.52%

12

Events After Balance Sheet Date

Ambeon Capital PLC, through its subsidiary Ambeon Essentials (Private) Limited ,entered into a share sale and Purchase Agreement("SSPA") on 24 January 2026 to acquire through a voluntary offer 981,118 ordinary voting shares, representing approximately 51.11% of the total issued ordinary voting shares of Harischandra Mills PLC held by a consortium of Investors.