Interim Financial Statements for the Quarter ended 31st March 2026

HARISCHANDRA MILLS PLC

INTERIM FINANCIAL STATEMENTS

For the year ended 31 March 2026

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.

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.)

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

HARISCHANDRA MILLS PLC

INTERIM FINANCIAL STATEMENTS

For the year ended 31 March 2026

INCOME STATEMENT

GROUP

Quarter Ended

31 March

Year Ended

31 March

2026

2025

2026

Revenue

Cost of sales

(1,464,006)

(1,262,043)

16

(5,479,085)

(5,075,709)

8

338,324

2

1,252,006

1,245,949

0

3,191

2,170

119,409

26,521

350

416,657

341,515

22

1,371,415

1,272,470

8

(104,558)

41

(564,249)

(512,686)

10

(101,399)

16

(432,120)

(442,406)

(2)

Result from operating activities

151,883 135,558

12

375,046

317,378

18

Finance income

12,886 10,757

Finance expenses

(4,193) (1,403)

Net finance income/(expenses)

8,693 9,354

20

49,136 43,476

199

(12,457) (10,654)

(7)

36,679 32,822

13

17

12

2025

Audited

Rs. '000

6,321,658

VARIANCE

%

13

VARIANCE

%

6

Rs. '000

1,808,218

Rs. '000

1,600,367

Rs. '000

6,731,091

Gross profit

344,212

Other income

72,445

Administrative expenses

(146,930)

Selling & distribution expenses

(117,844)

Profit from ordinary activities before tax

160,576

Income tax expenses

(43,079)

Profit after taxation attributable to shareholders of

Harischandra Mills PLC

117,497

Rs.

61.21

Rs.

59.25

Rs.

153.82

Rs.

131.83

Notes :

Figures for the year and quarter ended 31.03.2026 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 year ended 31 March 2026

STATEMENT OF COMPREHENSIVE INCOME

GROUP

Quarter Ended

31 March

2026

2025

Year Ended

31 March

2026

2025

Audited

Rs. '000

Rs. '000

295,275

253,064

VARIANCE

%

3

VARIANCE

%

17

Rs. '000

117,497

Other comprehensive income

Actuarial Gain/(Loss) from Re- measurement of employee

(14,201)

(17,367)

(18)

(14,201)

(17,367)

(18)

benefit obligation

Related tax on Re-measurement of employee benefit obligation

4,260

5,210

(18)

4,260

5,210

(18)

Other comprehensive income for the period

(9,941)

(12,157)

(18)

(9,941)

-12,157

(18)

Total comprehensive income for the period

107,556

101,579

6

285,334

240,907

18

Notes :

Figures for the year and quarter ended 31.03.2026 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 March 2026

STATEMENT OF FINANCIAL POSITION

GROUP

As at

31.03.2026

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

1,127,361

989

-

17,426

1,145,776

895,805

1,449

4,945

3,211

905,410

Current assets

Inventories

Trade and other receivables

Investment in unit trusts

Investment in fixed deposits

Cash & cash equivalents

Total current assets

Total assets

650,687

726,890

4,633

633,980

18,412

2,034,602

3,180,378

474,958

618,395

142,430

487,611

131,348

1,854,742

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

7,011

12,841

1,834,434

1,959,864

105,578

7,011

12,841

1,702,010

1,827,440

Non Current Liabilities

Employee benefit obligation

Total non current liabilities

246,009

246,009

206,381

206,381

Current Liabilities

Trade and other payables

Current tax liabilities

Bank overdraft

Total current liabilities

Total liabilities

Total equity & liabilities

666,732

44,884

262,889

974,505

1,220,514

3,180,378

569,619

60,598

96,114

726,331

932,712

2,760,152

Rs.

1,020.98

Rs.

951.99

Notes:

Figures for the year ended 31.03.2026 are provisional and subject to audit.

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

………………S…gd………………..

C.T.Gajanayake - Chief Financial Officer

……………S…gd…………………

S.N.Samarasinghe

Managing Director

20 May 2026

HARISCHANDRA MILLS PLC

INTERIM FINANCIAL STATEMENTS

For the year ended 31 March 2026

INCOME STATEMENT

COMPANY

Quarter Ended

31 March

2026

2025

Year Ended

31 March

2026

2025

(Audited)

Rs. '000

Rs. '000

VARIANCE

%

VARIANCE

%

117,527

113,032

Rs.

Rs.

61.22

58.88

295,305

255,631

Rs.

Rs.

153.84

133.17

Finance income

Finance expenses

Net finance income

12,886

10,757

(4,193)

(1,403)

8,693

9,354

20

49,136

43,476

199

(12,457)

(10,654)

7

36,679

32,822

13

17

12

Profit from ordinary activities before tax

160,606

144,846

11

411,755

352,767

17

Income tax (expenses)/reversal

(43,079)

(31,814)

35

(116,450)

(97,136)

20

Profit after taxation attributable to shareholders of Harischandra Mills PLC

Basic Earnings per Share

Notes :

Figures for the year and quarter ended 31.03.2026 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 year ended 31 March 2026

STATEMENT OF COMPREHENSIVE INCOME

COMPANY

Quarter Ended

31 March

2026

2025

Year Ended

31 March

2026

2025

(Audited)

Rs. '000

Rs. '000

295,305

255,631

VARIANCE

%

4

VARIANCE

%

16

Rs. '000

117,527

Rs. '000

113,032

Other comprehensive income

Actuarial Gain/(Loss) from Re- measurement of employee

(14,201)

-17,367

(18)

(14,201)

-17,367

(18)

benefit obligation

Related tax on Re-measurement of employee benefit obligation

4,260

5,210

(18)

4,260

5,210

(18)

Other comprehensive income for the period

(9,941)

(12,157)

18

(9,941)

-12,157

18

Total comprehensive income for the period

107,586

100,875

7

285,364

243,474

17

Notes :

Figures for the year and quarter ended 31.03.2026 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 March 2026

STATEMENT OF FINANCIAL POSITION

COMPANY

As at

31.03.2026

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

1,127,361

989

-

17,426

1,145,776

895,805

1,449

4,945

3,211

905,410

Current assets

Inventories

Trade and other receivables

Investment in unit trusts

Investment in fixed deposits

Cash & cash equivalents

Total current assets

Total assets

650,687

726,890

4,633

633,980

18,367

2,034,557

3,180,333

474,958

618,395

142,430

487,611

131,303

1,854,697

2,760,107

EQUITY & LIABILITIES

Equity

Stated Capital

105,578

Other capital reserves

11

General Reserve

12,841

Retained Earnings

1,841,719

Total equity attributable to equity holders of the company

1,960,149

105,578

11

12,841

1,709,265

1,827,695

Non current liabilities

Employee benefit obligation

Total non current liabilities

246,009

246,009

206,381

206,381

Current liabilities

Trade and other payables

Current tax liability

Bank overdraft

Total current liabilities

Total liabilities

Total equity & liabilities

666,402

44,884

262,889

974,175

1,220,184

3,180,333

569,319

60,598

96,114

726,031

932,412

2,760,107

Rs.

1,021.12

Rs.

952.12

Notes:

Figures for the year ended 31.03.2026 are provisional and subject to audit.

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

…………… Sgd. …………..

C.T.Gajanayake - Chief Financial Officer

…………… Sgd. ……………

S.N.Samarasinghe

Managing Director

20 May 2026

……………S…gd…. …………….

G.S.V.De Silva

Director

HARISCHANDRA MILLS PLC

INTERIM FINANCIAL STATEMENTS

For the year ended 31 March 2026

STATEMENTS OF CHANGES IN EQUITY

2026

2025

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

Group

Balance as at 01 April

105,578

7,011

12,841

1,702,010

1,827,440

105,578

7,011

12,841

1,614,035

1,739,465

Profit for the year

-

-

-

295,275

295,275

-

-

-

253,064

253,064

Re-measurement of employee benefits obligation

(14,201)

(14,201)

(17,367)

(17,367)

Related taxes

4,260

4,260

5,210

5,210

Interim Dividend

-

-

-

(76,784)

(76,784)

-

-

-

(76,784)

(76,784)

Final Dividend

-

-

-

(76,784)

(76,784)

-

-

-

(76,784)

(76,784)

Forfeiture of unclaimed dividend

658

658

636

636

Balance as at 31 March

105,578

7,011

12,841

1,834,434

1,959,864

105,578

7,011

12,841

1,702,010

1,827,440

Company

Balance as at 01 April

105,578

11

12,841

1,709,265

1,827,695

105,578

11

12,841

1,618,723

1,737,153

Profit for the year

-

-

-

295,305

295,305

-

-

-

255,631

255,631

Re-measurement of employee benefits obligation

(14,201)

(14,201)

(17,367)

(17,367)

Related taxes

4,260

4,260

5,210

5,210

Interim Dividend

-

-

-

(76,784)

(76,784)

-

-

-

(76,784)

(76,784)

Final Dividend

-

-

-

(76,784)

(76,784)

-

-

-

(76,784)

(76,784)

Forfeiture of unclaimed dividend

658

658

636

636

Balance as at 31 March

105,578

11

12,841

1,841,719

1,960,149

105,578

11

12,841

1,709,265

1,827,695

Notes :

Figures for the year ended 31.03.2026 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 year ended 31 March 2026

STATEMENT OF CASH FLOWS

GROUP

2026

2025

Rs.

Rs.

COMPANY

2026

2025

Rs.

Rs.

Cash flows from operating activities

Profit before income tax expense

Adjustment for

Provision for employee benefit

Depreciation/amortization

Provision for slow mowing machinery spares

Provision for impairment of trade receivable

Interest expenses

Change in fair value of unit trusts

Expenses write off

Profit on disposal of property, plant & equipment

Interest income from investment of fixed deposits

38,049

110,455

-

-

12,457

(4,202)

1,644

(91,099)

(46,509)

32,653

96,116

(8)

13

10,654

(6,980)

2,583

2,035

(42,101)

38,049

110,455

-

-

12,457

(4,202)

1,644

(91,099)

(46,509)

32,653

96,116

(8)

13

10,654

(6,980)

2,035

(42,101)

Operating profit before working capital changes

Change in inventories

Change in trade and other receivables

Change in trade and other payables

432,520

(175,729)

(110,139)

103,971

445,165

432,550

39,154

(175,729)

79,770

(110,139)

(49,290)

103,941

445,149

39,154

79,770

(49,274)

Income tax paid

Interest paid

Gratuity paid

Net cash flows generated from operating activities

(142,118)

(12,314)

(12,622)

83,569

(76,158)

(8,916)

(10,719)

419,006

(142,118)

(12,314)

(12,622)

83,569

(76,158)

(8,916)

(10,719)

419,006

Cash flows from investing activities

Net interest received

Proceeds from disposal of property,

plant and equipment

Investment in Fixed Deposits

Proceeds from unit trusts

Acquisition of property, plant and equipment and intangible asset

Cash flows from/ (used in) investing activities

91,110

(142,849)

142,000

(336,618)

(203,369)

2,449

(104,771)

-

(112,642)

(163,088)

91,110

2,449

(142,849)

(104,771)

142,000

-

(336,618)

(112,642)

(203,369)

(163,088)

(152,932)

(20,671)

(173,603)

(152,910)

(7,001)

(159,911)

(152,932)

(20,671)

(173,603)

(279,711)

35,234

(244,477)

82,315

(47,081)

35,234

(279,711)

35,189

(244,522)

82,315

(47,126)

35,189

Cash flows from financing activities

Dividends paid

Lease rental paid

Cash flows used in financing activities

Net change in cash and cash equivalents

Cash and cash equivalents at the beginning

Cash and cash equivalents at the end

(152,910)

(7,001)

(159,911)

Analysis of Cash & Cash Equivalents

Cash in Hand

Bank Overdrafts

18,412 131,348

(262,889) (96,114)

(244,477) 35,234

18,367

(262,889)

(244,522)

131,303

(96,114)

35,189

HARISCHANDRA MILLS PLC

INTERIM FINANCIAL STATEMENTS

For the year ended 31 March 2026

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 and / or contingent assests outstanding as at the Balance Sheet date.

4.

In respect of the financial year ended 31 March 2025, an interim dividend of Rs. 40.00 per share was paid on 11 June 2025, followed by a final dividend of Rs. 40.00 per share paid on 12 September 2025

5

Industry segments analysis of turnover

Food products

Soap products

Fuel & Lubricants

GROUP

Quarter ended

Year ended

31.03.2026

31.03.2025

31.03.2026

31.03.2025

1,318,459

1,175,226

4,881,141

4,556,898

188,330

173,899

763,493

715,810

301,429

251,242

1,086,457

1,048,950

1,808,218

1,600,367

6,731,091

6,321,658

6

Segment information

For the year ended 31 March

Food products

2026

2025

Rs. '000

Rs. '000

4,881,141

4,556,898

268,324

217,507

`

Soap

2026

2025

Rs. '000

Rs. '000

763,493

715,810

(14,133)

70,285

Fuel & Lubricants

2026

2025

Rs. '000

Rs. '000

1,086,457

1,048,950

1,446

3,065

Total

2026

2025

Rs. '000

Rs. '000

6,731,091

6,321,658

255,637

290,857

119,409

26,521

36,679

32,822

411,725

350,200

(116,450)

(97,136)

295,275

253,064

Consolidated turnover

Segmental operating profit/(loss)

Other operating income

Net finance income

Profit before taxation

Income tax expenses

Profit after taxation

Segment information

For the quarter ended 31 March

Food products

2026

2025

Rs. '000

Rs. '000

1,318,459

1,175,226

83,828

121,029

Soap

2026

2025

Rs. '000

Rs. '000

188,330

173,899

(6,079)

10,738

Fuel & Lubricants

2026

2025

Rs. '000

Rs. '000

301,429

251,242

1,689

600

Total

2026

2025

Rs. '000

Rs. '000

1,808,218

1,600,367

79,438

132,367

72,445

3,191

8,693

9,354

160,576

144,912

(43,079)

(31,176)

117,497

113,736

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 year ended 31 March 2026

Notes to the interim financial statements

as at

31.03.2026

as at

31.03.2025

Stated capital (Rs.)

No of shares (Nos.)

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

31.03.2026

Rs.

8,500.00

4,600.00

5,068.75

as at

31.03.2025

Rs.

4,198.00

3,600.00

4,000.00

Events Occurring After the Reporting Period

Subsequent to the reporting date of March 31, 2026, the following significant events have occurred:

(a) Change in Controlling Shareholding and Voluntary Offer

Following the Share Sale and Purchase Agreement (SSPA) dated January 24, 2026, and the subsequent Addendum dated March 20, 2026, Ambeon Essentials (Private) Limited (a subsidiary of Ambeon Capital PLC) proceeded with a Voluntary Offer to acquire the ordinary voting shares of Harischandra Mills PLC at a price of LKR 3,400/- per share.

As of May 2026, Ambeon Essentials (Private) Limited has successfully concluded the acquisition of a controlling stake of 51.11% (comprising 981,118 ordinary voting shares) from a consortium of existing shareholders.

(b) Changes to the Composition of the Board of Directors

In alignment with the change in the controlling interest, the following changes to the Board of Directors were effected in May 2026:

• Resignations: The Following Directors resigned from the Board effective May 12, 2026.

Mrs. M.P. De Silva - Executive Director

Mrs. R.K. Samarasinghe - Executive Director

Mrs. R. Kobbekaduwa - Independent, Non Executive Director

Mr. G.K. S. Kumar - Independent, Non Executive Director

• New Appointments: The following directors were appointed to the Board effective May 12, 2026, to represent the new majority shareholder:

Mr. Sujeewa Mudalige - Independent, Non-Executive Director

Dr. Sajeeva Narangoda - Executive Director

Mr. Savanth Sebastian - Independent, Non-Executive Director

Mr. Aravinda de Silva - Non-Independent, Non-Executive Director

HARISCHANDRA MILLS PLC

INTERIM FINANCIAL STATEMENTS

For the year ended 31 March 2026

10

Twenty largest shareholders of the company

As at

Shareholder's name

31.03.2026

No. of Shares

%

31.12.2025

No. of Shares

%

1

Hayleys PLC

780,026

40.63%

778,946

40.58%

2

Upeka de Silva

286,936

14.95%

286,936

14.95%

3

Chitra Padmini Rodrigo

278,920

14.53%

278,920

14.53%

4

Samarasinghe N.T.

266,920

13.90%

266,920

13.90%

5

Senaka Nilkantha Samarasinghe

76,670

3.99%

76,670

3.99%

6

Nanditha Rodrigo

30,736

1.60%

30,736

1.60%

7

Satyajit Arjuna Rodrigo

30,736

1.60%

30,736

1.60%

8

D.H.C.Ekanayake

28,292

1.47%

28,292

1.47%

9

A G I Selvaraj

27,014

1.41%

27,014

1.41%

10

H.D. Wijayanandana

21,601

1.13%

24,543

1.28%

11

M P de Silva

5,000

0.26%

5,000

0.26%

12

Chandra Sigamoney

4,494

0.23%

4,494

0.23%

13

C.J.Wijayawardana

3,821

0.20%

3,825

0.20%

14

Jayantha D

3,800

0.20%

3,800

0.20%

15

D.P.Navaratnam

3,461

0.18%

3,449

0.18%

16

Ramani Kamala Samarasinghe

3,200

0.17%

3,200

0.17%

17

H.A.Abeysekera

2,800

0.15%

2,800

0.15%

18

D.A.Jayasinghe

2,720

0.14%

2,720

0.14%

19

Estate of Mohommed Rafeek

2,668

0.14%

2,668

0.14%

20

Seyed Hamid Mohamed Kaleel

2,501

0.13%

2,501

0.13%

11

Public Holding Percentage

As at

31.03.2026

31.12.2025

No. of Shares

1,052,704

1,053,784

Percentage

54.84%

54.90%

No. of public share holders

986

867

The company had float adjusted market capitalization of Rs:5,341,754,902.50 and company qualifies under option one of the minimum public holding requirement for for the Diri Savi Board of the CSE.

12

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

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%