May 18, 2026 (MLN): Octopus Digital Limited (PSX: OCTOPUS) reported a 29.29% year-on-year contraction in profit after taxation for the quarter ended March 31, 2026, recording Rs13.25m compared to Rs18.74m in the corresponding period last year.

The company's basic and diluted earnings per share (EPS) declined 38.46% to Rs0.08, down from Rs0.13 in the same quarter last year, showing a compression in per-share returns for shareholders during the period.

OCTOPUS's revenues posted a robust 30.52% year-on-year increase, rising to Rs302.09m from Rs231.46m.

Cost of revenue, however, grew at a faster pace of 31.89% to Rs169.63m from Rs128.61m, marginally outpacing revenue growth.

Despite this, gross profit expanded by 28.80% to Rs132.47m from Rs102.85m in the corresponding quarter.

Administrative and selling expenses rose 14.68% to Rs108.64m from Rs94.73m. Other expenses surged sharply to Rs8.57m from a negligible Rs0.05m in the prior period, adding considerable pressure on operating profitability.

Other income declined steeply by 71.57% to Rs6.20m from Rs21.82m, weighing heavily on the operating result. This collectively resulted in profit from operations contracting 28.19% to Rs21.46m from Rs29.89m.

Finance costs declined significantly by 85.26% to Rs1.36m from Rs9.22m, providing a meaningful tailwind at the pre-tax level.

Profit before levy and income tax stood at Rs20.10m, a marginal 2.74% decline from Rs20.67m in the corresponding quarter last year.

Taxation, however, rose sharply by 255.87% to Rs6.85m from Rs1.92m, significantly eroding the bottom line and negating the relief provided by lower finance costs.

After accounting for taxation, Octopus Digital Limited closed the quarter with a profit after taxation of Rs13.25m, representing a 29.29% contraction over the Rs18.74m reported in the corresponding period of last year.