Data Agro Limited Reports Rs13.74 Million Profit in First Quarter
Data Agro Limited has reported a significant improvement in its financial performance for the first quarter ended September 30, 2026, posting a net profit of Rs13.74 million compared to a loss of Rs31.05 million in the corresponding period of the previous year.
According to the company’s unaudited financial statements, revenue increased substantially during the quarter, reflecting improved business performance and stronger sales activity.
Revenue Records Strong Growth
The company’s net revenue from contracts with customers reached Rs157.07 million during the quarter, compared to Rs110.93 million in the same period last year, representing an increase of approximately 41.6%.
Cost of sales declined to Rs118.01 million from Rs120.05 million, helping the company achieve a gross profit of Rs39.07 million against a gross loss of Rs9.12 million in the corresponding quarter last year.
This improvement in gross profitability highlights a positive change in the company’s operating performance.
Operating Profit Improves Significantly
Data Agro Limited recorded an operating profit of Rs27.88 million during the quarter, compared to an operating loss of Rs20.70 million in the same period last year.
The company’s total operating expenses stood at Rs11.19 million, slightly lower than Rs11.58 million reported in the corresponding period.
However, finance costs increased to Rs11.78 million from Rs8.97 million, reflecting higher financing expenses.
After accounting for finance costs and taxation, the company posted a net profit of Rs13.74 million, translating into earnings per share (EPS) of Rs3.43. This compares with a loss per share of Rs7.76 in the previous year’s corresponding quarter.
Financial Position and Cash Flow
The company’s total assets increased to Rs656.74 million as of September 30, 2026, compared to Rs651.12 million at June 30, 2026.
Current assets stood at Rs465.21 million, while trade debts increased to Rs211.22 million from Rs168.89 million. Stock in trade declined to Rs179.13 million from Rs259.40 million.
Short-term borrowings decreased to Rs264.61 million from Rs275.15 million, indicating a reduction in short-term financing during the quarter.
The company also reported positive cash generation, with net cash generated from operating activities amounting to Rs11.91 million. Cash and bank balances increased to Rs8.41 million from Rs7.07 million at the beginning of the period.
Important Financial Reporting Adjustment
The financial statements also contain additional calculations relating to previous-period adjustments. These include an adjustment of Rs23.38 million relating to the valuation of closing stock and further adjustments involving stock and trade debtors.
The accompanying statement presents an adjusted actual loss of Rs144.21 million up to September 30, 2026, after accounting for the specified previous-period adjustments. This figure should be distinguished from the reported quarterly accounting profit of Rs13.74 million.
Outlook
Data Agro Limited’s first-quarter results demonstrate a notable improvement in revenue, gross profitability and operating performance compared with the corresponding period last year.
The return to quarterly profitability and improvement in operating cash flows are encouraging developments. However, the company’s rising finance costs, trade debtors and the disclosed previous-period adjustments remain important factors to monitor.
Investors will be watching the company’s upcoming financial results to assess whether the improved performance can be sustained throughout the remaining quarters of FY2026-27.
