Agri-value chain enabler Samunnati has reported gross revenue of Rs 2,434 crore for the fiscal year ended March 2025, showing modest growth compared to Rs 2,404 crore in FY24. Despite flat revenue, the Chennai-based agri-fintech company remained profitable at the pre-tax level, posting earnings before tax (EBT) of Rs 5.3 crore.
However, after accounting for a deferred tax expense of Rs 74 crore, the company recorded a net loss of Rs 74 crore.
About Samunnati
A Specialized Agri Ecosystem Platform
Founded in 2014, Samunnati operates as a specialized platform serving the agricultural value chain. The company provides both financial and non-financial solutions for:
- Farmer-producer organizations (FPOs)
- Agri SMEs
- Agri-tech startups
Samunnati claims to work with over 6,000 farmer collectives, impacting millions of smallholder farmers across India.
Revenue Composition
Trading and allied activities remain the backbone of Samunnati’s business, contributing around 90% of its total gross revenue. Key figures for FY25 include:
- Income from trading and allied operations: Rs 2,205 crore
- Income from financing and lending operations: remainder
This shows the company’s continued reliance on core trading activities despite expanding financial services offerings.
Rising Costs and Expenses
Procurement and Employee Costs
Procurement expenses continued to dominate Samunnati’s cost structure, accounting for nearly 85% of total expenses and rising to Rs 2,084 crore in FY25. Employee benefit expenses also increased by 8%, reaching Rs 76 crore.
Finance Costs and Overheads
Samunnati’s lending business led to a sharp rise in finance costs, which surged 42.9% to Rs 215.8 crore from Rs 151 crore in FY24. Legal, professional, and other overheads further pushed total expenditure to Rs 2,463 crore, slightly above FY24 levels of Rs 2,434 crore.
Profitability Despite Challenges
Pre-Tax Profit vs Net Loss
While Samunnati maintained earnings before tax of Rs 5.3 crore, deferred tax liabilities of Rs 74 crore resulted in a net loss for FY25.
This indicates that while operationally the company remains profitable, tax-related accounting adjustments impacted overall profitability.
Key Takeaways
Operational Resilience
- Samunnati continues to serve a vast network of FPOs and agri SMEs.
- Trading and allied activities remain the main revenue driver.
- The company maintains pre-tax profitability despite rising costs.
Areas of Concern
- Finance costs and procurement expenses are rising significantly.
- Deferred tax liabilities are affecting net profitability.
Overall, Samunnati’s financials reflect a stable but cost-pressured business environment, highlighting the challenges of scaling in the agri-fintech sector.
Looking Ahead
Samunnati’s ability to maintain operational profitability, expand its reach across the agricultural ecosystem, and manage costs will determine its financial trajectory in the coming years. Strategic focus on lending efficiency, cost management, and value-added services for FPOs and SMEs could help stabilize net profits while driving growth.
