Agritech swings to Rs2bn loss in 1HCY26

July 29, 2026 (MLN): Agritech Limited (PSX: AGL) swung to a net loss of Rs2.12bn for the six months ended June 30, 2026, reversing a profit of Rs2.24bn recorded in the corresponding period last year.

Showing this sharp reversal, the company's loss per share stood at Rs3.54 compared to earnings per share of Rs3.74 in 1HFY25.

The top-line showed moderate growth, with net sales rising 17% year-on-year to Rs15.49bn from Rs13.21bn in the prior period.

However, cost of sales surged at a far sharper pace of 34% to Rs14.89bn, massively outpacing revenue growth and causing gross profit to collapse by 71% to Rs602.68m from Rs2.08bn showing severe margin compression driven by escalating input costs.

On the expenditure side, selling and distribution expenses rose 3% to Rs952.77m, while administrative and general expenses were trimmed by 7% to Rs434.78m.

Despite this modest saving, the combined weight of the cost surge and operating expenses pushed the company into an operating loss of Rs784.88m, a stark reversal from an operating profit of Rs692.14m in the same period last year.

Below the operating line, the situation deteriorated further. Other income collapsed by 88% to Rs573.49m from Rs4.85bn the single most damaging development of the half year, as the prior period's outsized other income figure had been the primary driver of last year's profitability.

Other expenses fell sharply by 99% to just Rs2.90m from Rs524.89m, offering negligible offset. Finance cost declined modestly by 8% to Rs1.86bn from Rs2.02bn.

These combined pressures resulted in a loss before final and minimum taxes of Rs2.08bn, reversing a profit of Rs2.99bn in the same period last year.

Final and minimum taxes declined 61% to Rs352.09m, but continued to add to the loss burden, pulling loss before taxation to Rs2.43bn against a profit of Rs2.09bn last year.

A tax credit of Rs309.33m compared to a tax charge of Rs148.54m in the prior period provided marginal relief, but was far insufficient to absorb the scale of the pre-tax loss, resulting in a net loss after taxation of Rs2.12bn for the half year.

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