Octopus Digital Limited has posted a sharp decline in profitability for the nine months ended September 30, 2025, with its profit after tax (PAT) plummeting 94.53% to Rs5.02 million, compared to Rs91.87 million in the same period last year. The downturn highlights a combination of falling revenues and rising costs that severely weakened the company’s financial performance.
According to the consolidated unaudited financial results, Octopus Digital profit after tax was dragged down by declining sales and surging finance and tax expenses. Revenues fell 11.39% to Rs749.71 million, reflecting soft market demand or potential loss of major clients.
Meanwhile, the cost of revenue increased 9.41%, cutting directly into margins and causing gross profit to shrink to Rs329.99 million from Rs462.46 million last year. Profit from operations also plunged 76.89% to Rs23.09 million, despite limited cost-control measures.
The company recorded Other Income of Rs37.53 million, nearly double the previous year’s figure, but this improvement was insufficient to offset operational losses.
Key profitability ratios showed a major decline, with Gross Profit Margin dropping from 54.66% in 2024 to 44.02% in 2025. The Net Profit Margin slumped from 10.86% to 0.67%, showing that nearly all revenue was absorbed by operational and financial expenses.
Finance costs surged 88.56% to Rs5.37 million, indicating higher borrowing costs or greater debt exposure. Taxation jumped 222.68% to Rs12.56 million, further depressing earnings.
Overall, Octopus Digital profit after tax suffered one of its steepest declines on record, underscoring the company’s struggle to manage rising costs and sustain profitability in a tightening economic environment.