Agritech Limited swung to a net loss of Rs2.12 billion for the six months ended June 30, 2026, a sharp reversal from the Rs2.24 billion profit the company had booked in the same period a year earlier. The company’s loss per share came in at Rs3.54, compared to earnings per share of Rs3.74 in the prior year’s first half, underscoring how quickly the company’s financial position deteriorated over the course of the period.
The company’s revenue actually grew, with net sales rising 17 percent year on year to Rs15.49 billion. But that growth was overwhelmed by a much steeper 34 percent jump in the cost of sales, which climbed to Rs14.89 billion and pushed gross profit down 71 percent to just over Rs600 million, a sign of significant margin pressure tied to rising input costs. Selling and distribution expenses edged up slightly while administrative and general expenses were trimmed, but neither move was enough to offset the damage further up the income statement, and the company ended up with an operating loss of nearly Rs785 million against an operating profit of over Rs690 million a year earlier.
The single biggest factor behind the swing to loss was a collapse in other income, which fell 88 percent to roughly Rs573 million from close to Rs4.85 billion in the prior period. That earlier figure had been unusually large and was largely responsible for the company’s profitability in the same period last year, meaning its absence this year exposed the underlying weakness in the core business. Other expenses fell sharply as well, and finance costs declined modestly, but neither change came close to compensating for the lost income.
By the time final and minimum taxes were applied, the company’s loss before taxation had widened to Rs2.43 billion, compared to a profit of over Rs2 billion in the same period last year. A tax credit provided some relief but was far too small relative to the scale of the pre-tax loss, leaving the company with a net loss after taxation of Rs2.12 billion for the half year.
The results highlight how reliant Agritech’s recent profitability had been on non-operating income rather than its core fertilizer and agricultural inputs business, and they raise questions about the sustainability of the company’s earnings going forward if input cost pressures persist without a comparable boost from other income sources.
Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem.
