Prime Lands Residencies PLC (CSE: PLR) reported strong financial performance for the quarter ended 31 December 2025, keeping shareholder expectations intact. The company’s share price increased by more than 40% over the last three months, reflecting heightened investor confidence. Market expectations remained elevated given the scale of project launches over the past two years, including three towers in The Border Colombo (484 units), J’adore Negombo (333 units), The Golf Colombo 08 (64 units), Mon Vie Colombo 05 (349 units), Prime Colombo 9 (559 units), and The Seasons Colombo 08 (44 units).
Quarterly revenue grew by 43% year-on-year to Rs. 2.80 billion, compared to the corresponding period last year. This growth was primarily driven by accelerated construction progress in Towers C of The Border Colombo project, together with first time revenue recognition from The Seasons Colombo 08. Revenue from the newly launched remaining projects is yet to be recognized in line with construction milestones and the company’s prudent revenue recognition policy, establishing the growth potential in earnings in upcoming periods.
Gross profit more than doubled, increasing by 111% year-on-year to Rs. 1.05 billion. This significant improvement reflects enhanced project margins and stronger operational efficiency, supported by the engagement of reputed construction firms in the country that deliver meaningful economies of scale, Strategic initiatives in tender management, improved procurement planning, and expedited construction timelines also contributed to margin expansion. Notably, the Tower C topping-off milestone was achieved four months ahead of the original schedule.
Operating profit rose sharply by 147% year-on-year to Rs. 730.9 million, despite the Prime Group making a Rs. 200 million contributions to the Rebuilding Sri Lanka Fund, of which Prime Lands Residencies PLC contributed Rs. 100 million.
Profit after tax for the quarter increased by 144% year-on-year to Rs. 562.3 million, demonstrating robust earnings momentum and laying the foundation for potential high-growth performance as recently launched projects begin revenue recognition over the next 36 months.
For the nine-month period ended 3st December 2025, Prime Lands Residencies PLC maintained solid year-to-date performance while delivering a standout 3rd quarter. Revenue for the nine months grew by 24% year-on-year to Rs. 7.95 billion, while gross profit increased by 63%, driven by the same operational and project execution factors noted above. Profit after tax for the nine-month period rose strongly by 68% year-on-year to Rs. 1.50 billion.
Earnings per share (EPS) for the quarter stood at Rs. 0.60, with trailing twelve-month (TTM) EPS at Rs. 1.96. The sustained upward movement in the share price has pushed the company’s price-to-earnings (PE) ratio well above both the overall market and sector averages, indicating strong investor expectations for future earnings growth.
Leadership Commentary
Group Chairman Premalal Brahmanage commented:
“The Company’s strong performance is a clear reflection of the trust placed in the Prime brand by our customers over the past 30 years, beginning with Prime Lands (Pvt) Ltd, the parent company of Prime Lands Residencies PLC. We remain focused on delivering high-quality developments while maintaining financial discipline and operational efficiency.
Photo Caption :Premalal Brahmanage, Chairman, Prime Group and Sadamini Perera, Co-Chairperson, Prime Group
