📉TJL Earnings Review 2Q FY26 – Tariff-Driven Demand Weakness Pushes TJL into Earnings Freefall • PAT down 80% YoY to LKR 149.9mn as revenue fell 10% YoY; volumes dropped 5–6% with added pressure from ASPs & product mix. • 📉 Margins deteriorated (GP 8.0%, EBIT 1.9%) due to sustained pricing pressure and weak demand. • 🇺🇸⚠ U.S. reciprocal tariffs spike on India (to 50%) severely disrupted TJL’s largest production base, worsening near-term performance. • 🔻 ASPs expected to decline further amid easing raw-material costs and competitive tariff-driven pricing. • 🔮 Demand weakness likely to persist medium–long term, with cost savings and LKR depreciation offering only limited relief. • ❗ Rating downgraded to SELL with a TP of LKR 31.10, reflecting a prolonged subdued demand outlook unless U.S. tariffs ease.