Kapruka Holdings PLC (CSE: KPHL) has achieved a significant milestone by returning to profitability for the quarter and financial year ended 31 March 2026, marking a major step forward in its transformation into an AI-powered digital commerce ecosystem.
For the quarter, Group revenue increased 19% year-on-year to LKR 547.53 million, while gross profit grew 39% to LKR 215.51 million, reflecting the company’s strategic shift towards higher-quality, asset-light revenue streams. The Group recorded an operating profit of LKR 10.22 million, compared to a loss of LKR 42.82 million in the previous year, while Profit Before Tax improved to LKR 22.25 million, representing a 160% turnaround.
For the full financial year, Kapruka reported revenue of LKR 1.92 billion and Profit Before Tax of LKR 37.56 million, marking a 132% improvement compared to the previous year.
The performance follows a two-year transformation programme focused on stronger cost discipline, improving business efficiency and building the technology foundation required for sustainable growth.
A key contributor to this progress has been Kapruka Partner Central, the company’s marketplace platform that enables third-party sellers to access Kapruka’s customer base, logistics network and payment infrastructure while reducing inventory risks. The Kapruka Services Platform has further expanded the company’s reach beyond physical products into digital services, creating new high-margin growth opportunities.
Meanwhile, Kapruka Cross Border continues to strengthen the company’s international presence by supporting Sri Lankan brands on global marketplaces including Amazon US, UK and Canada, expanding its USD revenue base and providing long-term growth potential.
A major strategic focus during the year has been the integration of artificial intelligence across business operations, including customer service, product discovery, supply chain management and back-office functions. Kapruka expects automation to reach 40% of back-office operations over the coming quarters, supporting lower operating costs and improved margins as the business scales.
The company has also commenced the transition of its delivery fleet to electric vehicles, aiming to reduce exposure to fuel price volatility while improving logistics efficiency over the long term.
Commenting on the achievement, Chairman and CEO Dulith Herath said that AI is enabling Kapruka to grow revenue without a proportional increase in headcount or fixed costs, creating stronger operating leverage and a more profitable business model.
With improved financial strength, diversified USD revenue streams and a more efficient cost structure, Kapruka enters the new financial year positioned for sustainable growth and long-term value creation for shareholders.