⚡ Flash Summary

Olympia Mills Limited reported unaudited results for the three months ended September 30, 2025. The company achieved a net profit after tax of Rs. 6.780 million, compared to Rs. 8.548 million in the same period last year, a decrease of roughly 21%. Revenue increased by Rs 22.558 million, primarily due to higher income from amenities and utilities provided to tenants. Despite a challenging economic environment with high inflation and energy prices, the company managed to remain profitable.

📌 Key Takeaways

• 📉 Net profit after tax decreased to Rs. 6.780 million in Q3 2025 from Rs. 8.548 million in Q3 2024.
• ⬆️ Revenue increased by Rs. 22.558 million due to higher income from amenities and utilities provided to tenants.
• 💼 Basic and diluted earnings per share decreased to Rs. 0.565 from Rs. 0.712 year-over-year.
• 💰 Gross profit slightly decreased to Rs. 17.395 million from Rs. 17.572 million year-over-year.
• ⚠️ Operating profit decreased to Rs. 12.531 million from Rs. 14.284 million year-over-year.
• 🏦 Finance costs decreased to Rs. 874,632 from Rs. 1.047 million year-over-year.
• 💸 Profit before taxation decreased to Rs. 11.656 million from Rs. 13.237 million year-over-year.
• 🏢 Administrative & general expenses increased to Rs. (5.248) million from Rs. (4.329) million year-over-year.
• 📈 Other income decreased to Rs. 603,910 from Rs. 1.332 million year-over-year.
• ⬇️ Direct operating expenses increased significantly to Rs. (34.586) million from Rs. (11.851) million year-over-year.
• 🚧 The company’s current liabilities exceeded its current assets by Rs 341.966 million, indicating potential liquidity concerns.

🎯 Investment Thesis

Given the decreased profitability, liquidity concerns, and increase in operating expenses, a HOLD recommendation is appropriate. Further financial analysis and a detailed understanding of the company’s future prospects, including sector dynamics and competitive positioning, are needed before considering a BUY. Price target needs to be re-assessed lower than previous target. Recommendation time horizon: MEDIUM_TERM.