Lahore, August 27, 2026: Octopus Digital Group has reported a stronger top-line performance for the first half of 2026, with consolidated revenue rising to Rs693.96 million compared with Rs537.43 million in the same period last year. However, higher operating expenses and increased taxation limited the growth in bottom-line earnings.

According to the company’s unaudited financial results for the half year ended June 30, 2026, revenue increased by around 29% year-on-year. Gross profit also improved significantly, reaching Rs394.63 million from Rs240.25 million a year earlier, reflecting a stronger gross margin during the period.

Despite the improvement in gross profitability, administrative and selling expenses increased to Rs340.69 million from Rs226.77 million. Other expenses stood at Rs22.89 million, while other income declined sharply to Rs11.11 million from Rs45.89 million in the corresponding period of 2025. As a result, consolidated operating profit reached Rs42.15 million, compared with Rs39.00 million last year.

After finance costs, levy and income tax, consolidated profit after tax stood at Rs23.78 million, down from Rs30.35 million in the first half of 2025. Earnings per share consequently declined to Rs0.15 from Rs0.19.

Second-quarter performance improves

The group’s second-quarter numbers showed stronger momentum. Revenue for the quarter rose to Rs391.87 million from Rs305.97 million in the same quarter last year, while gross profit increased to Rs262.16 million from Rs137.41 million.

Quarterly operating profit more than doubled to Rs20.69 million from Rs9.11 million. However, after taxation, quarterly profit stood at Rs10.53 million compared with Rs11.61 million a year earlier.

The figures suggest that while the group is expanding its revenue base and generating substantially higher gross profit, rising administrative and selling costs remain an important factor affecting earnings conversion.

Balance sheet expands

Octopus Digital Group’s consolidated total assets increased to Rs3.33 billion as of June 30, 2026, compared with Rs3.15 billion at the end of December 2025. Non-current assets rose to Rs1.18 billion, while current assets reached Rs2.15 billion.

Trade debts increased to Rs1.44 billion from Rs1.30 billion, while contract assets almost doubled to Rs296.17 million from Rs154.59 million. Capital work in progress also increased to Rs570.87 million from Rs413.89 million, indicating continued investment in projects and assets.

Consolidated equity stood at Rs2.81 billion at the end of June 2026, up from Rs2.76 billion at December 2025. The group reported long-term diminishing Musharika financing of Rs12.36 million and current liabilities of Rs504.52 million.

Operating cash flow remains positive

Cash generation from operations remained a positive feature of the group’s financial performance. Net cash generated from operating activities increased to Rs137.81 million during the first half of 2026, compared with Rs106.33 million in the same period of 2025.

At the same time, the company continued to invest in its business. Net cash used in investing activities amounted to Rs137.55 million, primarily reflecting additions to intangible assets. After financing outflows, cash and cash equivalents stood at Rs94.93 million at June 30, 2026, compared with Rs98.61 million at the beginning of the year.

Standalone results remain challenging

The standalone financial statements present a different picture. Octopus Digital Limited recorded revenue of Rs188.67 million in the first half of 2026, compared with Rs179.44 million a year earlier. However, the company reported a net loss of Rs30.97 million, compared with a loss of Rs9.09 million in the first half of 2025.

The standalone results show that administrative expenses remained above gross profit, resulting in an operating loss of Rs46.01 million. The company also reported higher taxation, contributing to the wider net loss.

No dividend announced

Alongside the financial results, the board recommended no cash dividend, bonus shares, right shares or other corporate action for the period. The company said its half-yearly report for the period ended June 30, 2026 would be transmitted separately through PUCARS.

Overall, Octopus Digital Group’s first-half performance highlights strong revenue and gross-profit growth at the consolidated level, supported by continued investment and positive operating cash generation. The key challenge for the group remains controlling operating expenses and translating its expanding revenue base into stronger net profitability.