Prime Lands Residencies 3Q earnings delivered a sharp upswing, reinforcing investor confidence and strengthening the company’s growth narrative. The latest quarterly results highlight accelerating construction milestones, expanding margins, and sustained profitability across flagship residential projects.
Prime Lands Residencies 3Q earnings signal rising investor confidence
Prime Lands Residencies PLC reported a robust financial performance for the quarter ended 31 December 2025, marking one of its strongest third-quarter results in recent years. The company maintained positive market momentum, with its share price rising by more than 40% over the past three months. This rally reflects heightened investor expectations following a series of large-scale project launches across Colombo and Negombo.
Quarterly revenue surged 43% year-on-year to Rs. 2.80 billion, compared with the corresponding period last year. The growth was primarily driven by accelerated construction progress in Tower C of The Border Colombo, alongside first-time revenue recognition from The Seasons Colombo 08. Revenue from several recently launched projects has yet to be recognized, as the company follows a milestone-based and prudent revenue recognition framework. This indicates further upside potential as construction progresses over the coming quarters.
Gross profit recorded an exceptional expansion, climbing 111% year-on-year to Rs. 1.05 billion. The substantial margin improvement reflects enhanced project-level profitability and operational discipline. Management attributed this performance to the engagement of reputed construction firms capable of delivering economies of scale, combined with tighter tender management, improved procurement planning, and faster construction execution. Notably, the topping-off milestone for Tower C was achieved four months ahead of schedule, underscoring operational efficiency.
Operating profit rose 147% year-on-year to Rs. 730.9 million, demonstrating that the company’s cost management strategy remains intact even amid increased project scale. This performance was achieved despite a Rs. 200 million contribution by the broader Prime Group to the Rebuilding Sri Lanka Fund, of which Prime Lands Residencies PLC contributed Rs. 100 million. The ability to sustain margin expansion while supporting national rebuilding efforts signals balance sheet resilience and disciplined financial planning.
Profit after tax for the quarter increased 144% year-on-year to Rs. 562.3 million. The earnings momentum sets a foundation for further performance gains, particularly as newly launched developments begin revenue recognition over the next 36 months. Earnings per share for the quarter stood at Rs. 0.60, while trailing twelve-month EPS reached Rs. 1.96, reflecting steady bottom-line growth.
For the nine-month period ended 31 December 2025, the company delivered consistent year-to-date results while producing a standout third quarter. Revenue for the nine months grew 24% year-on-year to Rs. 7.95 billion. Gross profit expanded 63%, supported by similar operational improvements seen in the third quarter. Profit after tax for the nine-month period increased 68% year-on-year to Rs. 1.50 billion, confirming sustained earnings growth across multiple reporting cycles.
The strong financial performance has also influenced market valuation metrics. The continued appreciation in share price has pushed the company’s price-to-earnings ratio above overall market and sector averages. While elevated valuations can imply pricing pressure, they also indicate investor confidence in future earnings expansion, particularly as multiple large residential projects move through key construction milestones.
Over the past two years, Prime Lands Residencies PLC has launched several high-profile developments, including The Border Colombo, J’adore Negombo, The Golf Colombo 08, Mon Vie Colombo 05, Prime Colombo 9, and The Seasons Colombo 08. These projects collectively add substantial unit inventory to the pipeline, positioning the company to capture demand in the mid-to-upper residential market segments. The scale and geographic spread of these launches suggest a strategic push to strengthen its urban residential footprint while maintaining brand positioning built over three decades.
Chairman Premalal Brahmanage emphasized that the company’s financial gains stem from long-standing customer trust in the Prime brand, which originated with Prime Lands Ltd., the parent entity. He reiterated that management remains committed to delivering high-quality developments while preserving financial discipline and operational rigor. This dual focus on construction excellence and balance sheet stability appears central to sustaining investor expectations.
Looking ahead, Prime Lands Residencies 3Q earnings point to continued expansion supported by structured revenue recognition, efficient cost control, and disciplined project execution. With multiple developments yet to reach peak revenue phases, forward visibility on earnings remains favorable. However, the company will need to maintain construction timelines, cost efficiency, and market demand momentum to justify elevated valuation multiples.
Overall, the third-quarter results reinforce Prime Lands Residencies PLC’s position as a significant player in Sri Lanka’s residential property sector. The combination of strong earnings growth, expanding margins, and an active project pipeline provides a credible platform for sustained performance in the coming financial periods.