Mauritius-based Harel Mallac steers recovery as turnaround efforts lift revenue to $72.5 million

Harel Mallac & Co. Limited, a Mauritius-based diversified conglomerate, strengthened its financial position in 2025 as improvements across its core businesses and cost-cutting measures helped lift revenue to MUR3.39 billion ($72.5 million) from MUR3.37 billion ($71.5 million) a year earlier, according to its audited financial statements.

The resilient performance under Group CEO Charles Harel was reflected in operating results, with profit before finance costs returning to positive territory at MUR29 million ($0.62 million). That marked a MUR100 million ($2.12 million) improvement from the operating loss of MUR71 million ($1.5 million) reported in the previous financial year, as the group pushed ahead with efforts to improve efficiency and streamline operations.

Restructuring trims losses; Tech pressures remain

Much of the recovery came from steps taken to address weaker-performing units. In the Equipment & Systems division, losses before finance costs narrowed to MUR20 million ($0.42 million) from MUR85 million ($1.8 million) in 2024, reflecting improved performance across the division’s trading businesses and the benefits of restructuring measures during the year.

The chemicals business also delivered stronger results despite challenging trading conditions and supply constraints in some markets. Operating profit before finance costs rose to MUR44 million ($0.93 million) from MUR34 million ($0.72 million), supported by higher sales volumes and continued demand for products supplied by Archemics.

In the technology segment, revenue increased during the year, although profitability remained under pressure. Operating losses before finance costs widened to MUR35 million ($0.74 million) from MUR19 million ($0.4 million) due to a less favorable product mix. The group is now making moves to cut fixed costs and improve performance in the coming financial year.

Total assets hold at $114.2 million

Port Louis-based diversified conglomerate, Harel Mallac operates across a broad range of sectors, including manufacturing, engineering, technology services, investments, and corporate services. While technology revenues grew, the group also benefited from positive valuation gains within its property portfolio, providing additional support to overall results.

The conglomerate further strengthened its position through the disposal of a non-core subsidiary in September 2025. The transaction generated a capital gain of MUR33.16 million ($0.7 million) and helped reduce the group’s net loss for the year to MUR38.27 million ($0.81 million), compared with a loss of MUR206.84 million ($4.4 million) in 2024.

The improvement in earnings was accompanied by a stronger balance sheet. Total assets stood at MUR5.38 billion ($114.2 million), broadly unchanged from the previous year, while total equity increased to MUR2.19 billion ($46.5 million) from MUR2.06 billion ($43.7 million). Shareholders’ interest also rose to MUR2.05 billion ($43.5 million) from MUR1.92 billion ($40.7 million).