Data Agro Limited Reports Financial Recovery in 2026, Supported by Higher Revenue and Improved Profitability

Data Agro Limited has reported a significant financial recovery for the fiscal year ended June 30, 2026, returning to profitability after recording a loss in the previous year. The company’s latest financial statements show improvements in revenue, gross profit, and operating performance, highlighting a stronger financial position despite continued pressure from financing costs and working capital requirements.

Revenue Growth Strengthens Financial Performance

According to the company’s financial statements, Data Agro Limited generated net revenue of Rs. 386.08 million in FY2026, compared with Rs. 353.21 million in FY2025. This represents an increase of approximately 9.3%, reflecting improved revenue performance during the year.

The company’s cost of sales declined to Rs. 294.62 million from Rs. 297.88 million in the previous fiscal year. As a result, gross profit increased significantly to Rs. 91.46 million, compared with Rs. 55.33 million in FY2025.

The improvement in gross profit suggests that the company achieved a better balance between revenue generation and production or purchasing costs during the reporting period.

Operating Profit Rises Sharply

Data Agro Limited also recorded a substantial improvement in operating performance. Profit from operations increased to Rs. 47.26 million in FY2026, compared with Rs. 10.43 million a year earlier.

Administrative expenses declined to Rs. 26.16 million from Rs. 30.30 million, helping support the improvement. Distribution costs, however, increased moderately to Rs. 14.88 million, while other operating expenses rose to Rs. 3.16 million.

Despite these additional costs, the company’s operating results improved considerably, indicating stronger profitability before financing expenses and taxation.

Company Returns to Annual Profit

One of the most notable developments in the financial results is the company’s return to profit. Data Agro Limited reported a profit before levy and income tax of Rs. 12.92 million for FY2026, reversing a loss of Rs. 28.93 million in FY2025.

After accounting for levy and income tax, the company recorded a net profit of Rs. 7.50 million, compared with a net loss of Rs. 24.69 million in the previous year.

Basic and diluted earnings per share also improved, reaching Rs. 1.88 against a loss per share of Rs. 6.17 in FY2025.

This recovery marks an important improvement in the company’s earnings performance, although maintaining profitability will depend on revenue growth, cost management, and control over financing expenses.

Financing Costs Remain a Key Challenge

Although operating performance improved, financing costs continued to weigh on the company’s bottom line. Finance costs declined to Rs. 34.34 million in FY2026 from Rs. 41.45 million in FY2025.

The reduction provided some relief, but financing expenses remained substantial relative to operating profit. This highlights the importance of managing borrowing requirements and improving the efficiency of working capital.

At June 30, 2026, short-term borrowings stood at Rs. 275.15 million, up from Rs. 242.24 million a year earlier. The increase indicates that the company continued to rely significantly on short-term financing.

Total Assets and Equity Increase

Data Agro Limited’s total assets rose to Rs. 651.12 million at the end of FY2026, compared with Rs. 604.69 million in FY2025.

Current assets increased to Rs. 455.83 million, supported by higher inventory and trade receivables. Stock in trade increased to Rs. 259.40 million from Rs. 206.71 million, while trade debts rose to Rs. 168.89 million from Rs. 140.77 million.

These increases may support business activity, but they also make inventory management and timely collection of customer payments important priorities.

The company’s total equity and related balances reported under the equity section reached Rs. 285.82 million, compared with Rs. 280.21 million in the previous year. Unappropriated profit increased to Rs. 88.12 million from Rs. 72.54 million, reflecting the year’s positive earnings and other equity movements.

Operating Cash Flow Remains Under Pressure

Despite returning to profitability, Data Agro Limited faced challenges in generating positive operating cash flow. Net cash used in operating activities amounted to Rs. 32.81 million in FY2026, compared with Rs. 14.82 million in FY2025.

The cash flow statement shows that increases in inventory and trade receivables placed pressure on working capital. Finance costs paid during the year amounted to Rs. 34.18 million, further affecting cash resources.

The company generated Rs. 32.92 million in net financing cash flow, primarily through an increase in short-term borrowings. Nevertheless, cash and cash equivalents declined to Rs. 7.07 million at year-end from Rs. 7.75 million in FY2025.

These figures demonstrate that improving accounting profitability does not automatically translate into stronger cash generation. Effective management of receivables, inventory, and financing obligations will remain important.

Outlook for the Coming Financial Year

Data Agro Limited’s FY2026 results demonstrate meaningful progress in revenue growth, gross profit, and operating earnings. Its return to profitability is an encouraging development following the loss reported in the previous fiscal year.

However, rising short-term borrowings, substantial finance costs, and negative operating cash flow remain important considerations. The company’s ability to sustain its recovery will depend on maintaining margins, controlling expenses, improving cash collection, and managing working capital efficiently.

Investors and other stakeholders will likely pay close attention to whether the company can convert its improved operating performance into sustainable earnings and stronger cash flows in the coming year.

Conclusion

Data Agro Limited delivered a stronger financial performance in FY2026, increasing revenue to Rs. 386.08 million and reporting a net profit of Rs. 7.50 million after a loss in the previous year. Higher gross profit and improved operating results supported the turnaround.

While the results indicate progress, financing costs and working capital pressures remain challenges. Continued operational discipline and prudent financial management will be essential for the company to build on its recovery and strengthen its financial position.