DeHaat Reports Rs 2,715 Crore Revenue in FY26 as Losses Rise 11.4%

Agritech company DeHaat reported revenue from operations of Rs 2,715 crore in FY26, down 9.8% from Rs 3,010 crore in the previous financial year. The decline comes as the company continues to move beyond its traditional marketplace model and invest in building its own agricultural and consumer-facing brands.

The Bihar-based full-stack agritech platform has been expanding its portfolio of in-house brands over the past few years. The strategy is aimed at improving profit margins, gaining greater control over pricing and reducing its dependence on products supplied by third parties.

However, this shift appears to have come at a cost in the short term. While DeHaat managed to reduce its overall expenditure, its lower revenue affected profitability, with net losses increasing during FY26.

According to the company's consolidated financial statements reviewed by Entrackr, DeHaat's revenue from operations declined nearly 10% year-on-year.

Agricultural Output Business Remains a Major Revenue Contributor

DeHaat generates revenue through two primary business segments: agricultural inputs and agricultural output.

Its agricultural inputs business, which includes the sale of seeds, fertilisers and other farming products, contributed Rs 517 crore in FY26. This accounted for approximately 19% of the company's operating revenue.

The remaining revenue came from its agricultural output business, which involves the procurement and sale of farm produce, including staples and chillies. The segment also includes consumer-facing initiatives such as Farm Plus and HonestFarms.

India remained DeHaat's largest market, contributing 83% of its overall revenue. The company generated the remaining income from its international operations across the UK, Europe, the Middle East, Thailand and Russia.

Despite its presence in multiple international markets, the company continues to depend heavily on its domestic operations for the bulk of its business.

Procurement Costs Account for Nearly 80% of Expenses

On the expenditure front, procurement of materials continued to be DeHaat's biggest cost, accounting for nearly 80% of its total expenses.

As the company's business scale moderated, procurement expenses declined 11.7% to Rs 2,390 crore in FY26.

Employee benefit expenses also came down during the year, falling 9.1% to Rs 159 crore.

Other operating expenses included transportation, rent, warehousing, sales and branding costs, along with legal and administrative expenses.

As a result, DeHaat's total expenditure declined 8.3% to Rs 2,972 crore in FY26, compared with Rs 3,242 crore in FY25.

While the company managed to bring down its spending across several categories, the reduction was not enough to offset the impact of declining revenue.

Net Loss Widens to Rs 224 Crore

Despite the reduction in overall expenditure, DeHaat's financial performance remained under pressure.

The company's net loss increased 11.4% to Rs 224 crore in FY26, compared with Rs 201 crore in the previous financial year.

For a clearer assessment of its business performance, the income of Rs 578 crore arising from changes in the fair value of preference shares has been excluded from the comparison. This adjustment helps present a more representative picture of the company's underlying financial position.

At the unit level, DeHaat spent Rs 1.09 for every rupee of operating revenue generated during FY26.

Its return on capital employed (ROCE) stood at -53.9%, while its EBITDA margin was recorded at 6%.

The company also reported current assets of approximately Rs 1,000 crore at the end of the financial year.

These figures highlight the financial challenges DeHaat faces as it continues investing in its business transformation while dealing with slower revenue growth.

DeHaat Shifts Focus Towards Building Its Own Brands

DeHaat's changing business strategy reflects a broader shift taking place across India's agritech sector.

Several startups that initially operated as marketplaces connecting farmers with agricultural input suppliers and buyers are now exploring ways to develop and sell products under their own brands.

The approach offers companies an opportunity to gain greater control over their supply chains, pricing and customer relationships. It can also help improve margins over time by reducing reliance on third-party products.

DeHaat has been following this approach by expanding its in-house brand portfolio and strengthening its consumer-facing offerings.

However, building a brand-based business requires time and continued investment. Companies must establish customer trust, develop distribution networks and ensure that their products can compete effectively with existing alternatives.

For DeHaat, the transition has coincided with lower operating revenue and higher losses, suggesting that the benefits of its strategy have yet to translate into stronger financial results.

Can DeHaat's New Strategy Improve Profitability?

The Indian agritech sector has become more cautious since the funding boom of 2021-22. With investors placing greater emphasis on sustainable growth, startups are under increasing pressure to demonstrate stronger financial performance rather than relying solely on expansion.

DeHaat's move towards building its own brands could help it improve margins, strengthen its relationships with farmers and customers, and gain more control over its business operations.

At the same time, the company's FY26 results show that the transition is not without challenges. Declining revenue and rising losses indicate that the business will need to balance its long-term strategy with the need to maintain financial stability in the near term.

A major factor to watch will be how quickly DeHaat can expand its in-house brands and generate meaningful revenue from them. Successfully scaling these offerings could create a stronger foundation for future growth and profitability.

For now, the company faces the challenge of turning its investments in brand development into measurable financial gains. Its performance over the next few financial years will show whether this shift can deliver the stronger margins and sustainable business model it is aiming for.