Ceylon Grain Elevators poised to surpass Rs. 35bn revenue in 2026

Ceylon Grain Elevators PLC (GRAN), Sri Lanka’s market leader in animal feed, is well-positioned to capture additional market share amid industry disruptions and is projected to surpass Rs.35 billion in revenue in 2026, according to a research report by SC Securities.

The report highlighted that Cyclone Ditwah impacted several free-mixer competitors, giving the Singaporean-owned company an advantage to strengthen its market position while maintaining healthy margins. The research noted that the Sri Lankan feed industry is set to grow, driven primarily by expanding poultry demand.

“Feed revenue remains GRAN’s largest segment, and we expect this to continue over the next two years,” the report stated. The company’s “Other” segment is also projected to record steady growth in 2026 and 2027, supported by rising cattle feed consumption and higher warehouse rental income due to increased storage demand.

A key factor behind GRAN’s strong margins is its sourcing strategy. The Group procures a significant portion of maize from international markets, which is more cost-effective than locally produced maize.

 The 2023 reduction in maize import taxes further enhanced efficiency, while GRAN’s bulk procurement capabilities and vertical integration with TAFL provide a scale advantage, particularly in broiler farming.

Under a conservative outlook, SC Securities expects GRAN to sustain stronger gross profit margins in 2026 compared to prior years. Net profit is projected to reach Rs. 4,713 million in 2026, representing 22% growth, followed by Rs. 4,731 million in 2027, a modest 0.39% increase, driven by higher revenue and improved margins.

Incorporated in 1982, GRAN operates across feed milling, breeder and broiler farming, hatcheries, poultry processing, and distribution. Backed by the Prima Group, Ceylon Grain Elevators maintains a dominant position in Sri Lanka’s poultry industry.