AGL Q1CY26 loss widens by 4.3x

April 29, 2026 (MLN): Agritech Limited (PSX: AGL) reported a massive deterioration in its financial performance for the first quarter ended March 31, 2026, with its net loss widening by a staggering 4.3x to Rs1.02bn, compared to a net loss of Rs238.43m in the corresponding period last year.

Reflecting this severe bottom-line contraction, the company's basic and diluted loss per share worsened to Rs1.70 from Rs0.56 in Q1 2025.

The widening loss was triggered by a drop in top-line sales combined with rigid production costs. AGL’s net sales declined by 7% year-on-year, falling to Rs7.04bn from Rs7.54bn. However, the cost of sales remained stubbornly flat at Rs6.66bn.

Because the company could not scale down its direct costs in line with the dropping revenue, its gross profit was crushed, plummeting by 57% to just Rs376.54m compared to Rs880.22m in the prior year.

The operational front compounded the misery. Selling and distribution expenses surged by 49% to Rs515.44m, while administrative expenses remained relatively flat at Rs228.60m.

Overwhelmed by the collapsing gross margins and rising distribution costs, the company's core operations swung into the red, posting an operating loss of Rs367.50m a sharp negative turnaround from the Rs307.43m operating profit recorded last year.

Below the operating line, AGL found little support. "Other income" nearly halved, dropping 48% to Rs217.10m. The only minor relief came from a 10% reduction in finance costs, which ticked down to Rs923.04m. However, this heavy debt-servicing burden still severely outweighed the company's earning capacity.

Dragged down across all major fronts, the loss before taxation swelled by 173% to Rs1.16bn. The company did receive a positive taxation credit of Rs144.94m (down 23% from last year's credit), but it was nowhere near enough to offset the operational and financial hemorrhage. Consequently, Agritech Limited closed the quarter with its final net loss ballooning to Rs1.02bn.

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