Agritech Reports Rs1.02 Billion Quarterly Loss as Operating Costs Weigh on Earnings

Agritech Limited has reported a significant loss for the quarter ended March 31, 2026, reflecting mounting financial pressure despite maintaining stable revenue during the period. The company disclosed its financial results following a meeting of its Board of Directors held on April 29, 2026, in Rawalpindi. The board did not recommend any cash dividend, bonus shares, right shares, or any other corporate action.

According to the company’s condensed interim financial statements, net sales stood at Rs7.04 billion, slightly lower than Rs7.54 billion recorded in the corresponding quarter of last year. Gross profit declined sharply to Rs376.54 million, compared with Rs880.22 million in the same period of 2025, reflecting increased pressure on margins.

The company posted an operating loss of Rs367.50 million, reversing an operating profit of Rs307.43 million reported a year earlier. Although Agritech earned Rs217.10 million in other income, substantially higher finance costs of Rs923.04 million continued to weigh heavily on profitability.

As a result, Agritech recorded a loss after tax of Rs1.02 billion, compared with a loss of Rs238.43 million in the corresponding quarter last year. The company’s loss per share widened to Rs1.70, up from Rs0.56 in the same period of 2025.

On the balance sheet, total assets increased to Rs94.24 billion as of March 31, 2026, from Rs92.84 billion at the end of December 2025. Shareholders’ equity, however, declined to Rs17.93 billion due to the higher accumulated losses incurred during the quarter.

Despite the earnings setback, the company’s cash flow from operating activities remained positive at Rs2.37 billion, more than double the Rs1.00 billion generated in the corresponding period last year. However, higher capital expenditure and investment-related outflows limited the improvement in the company’s overall cash position.

The latest results highlight the challenges facing Agritech as elevated financing costs and shrinking margins continue to impact profitability. Investors will be closely watching the company’s efforts to improve operational performance and strengthen its financial position in the coming quarters.