Profit Before Tax surges 160% YoY to swing into the black, with operating performance up 124% and gross profit up 39%
Kapruka Holdings PLC (CSE: KPHL) reported a definitive return to profitability for the quarter and year ended 31 March 2026, marking an inflection point in its transformation into an AI-powered digital commerce ecosystem.
For the quarter, Group revenue grew 19% YoY to LKR 547.53 million, while gross profit expanded 39% to LKR 215.51 million, reflecting a deliberate shift toward higher-quality, asset-light revenue. The Group swung to an operating profit of LKR 10.22 million from a LKR 42.82 million loss a year earlier (a 124% improvement), while Profit Before Tax reached LKR 22.25 million, up 160% on the prior-year loss. For the full year, the Group delivered revenue of LKR 1.92 billion and Profit Before Tax of LKR 37.56 million, a 132% turnaround from the prior year.
The results reflect a deliberate two-year restructuring that tightened cost discipline, reweighted the business toward asset-light revenue, and laid the technology foundation for the next phase of growth.
A key driver is Kapruka Partner Central, the Group’s marketplace, which expands gross margin and capital efficiency by enabling third-party sellers to plug into Kapruka’s customer base, logistics, and payments infrastructure, adding revenue without adding inventory risk. Building on this, the Kapruka Services Platform extends the business beyond physical goods into bookable digital services, opening a new high-margin addressable market on top of the same customer network. In parallel, Kapruka Cross Border continues to scale the Group’s USD revenue base as an e-distributor for Sri Lankan brands on Amazon US, UK, and Canada, serving as both a structural hedge and a long-duration growth lever.
The most significant strategic shift this year is the embedding of AI across operations, from customer service and product discovery to supply chain and back-office processing. Kapruka is on track to reach 40% back-office automation within the next several quarters, which it expects to translate into lower unit costs and improved operating margins as volume grows. The Group has also commenced converting its entire delivery fleet to electric vehicles, a multi-quarter program designed to de-risk one of the most volatile line items on its P&L and deliver a steady tailwind to logistics margins.
Chairman and CEO Dulith Herath said: “In practical terms, AI is allowing us to scale revenue without proportionally scaling headcount or fixed costs. That is the definition of operating leverage, and it is the lever that turns a profitable quarter into a structurally more profitable business. We have rebuilt the engine, and the runway ahead is long.”
Kapruka said it enters the new financial year with a stronger balance sheet, a returning profitability profile, USD revenue diversification, and a cost base increasingly insulated from fuel and FX shocks, positioning the Group to create meaningful, durable value for shareholders.
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Chairman and CEO Dulith Herath
