diff --git a/erpnext/selling/report/lost_quotations/lost_quotations.py b/erpnext/selling/report/lost_quotations/lost_quotations.py
index a48e945172c..c3bcd54cfd3 100644
--- a/erpnext/selling/report/lost_quotations/lost_quotations.py
+++ b/erpnext/selling/report/lost_quotations/lost_quotations.py
@@ -83,7 +83,8 @@ def get_data(company: str, from_date: str, to_date: str, group_by: Literal["Lost
 		.select(
 			Coalesce(dimension[fieldname], _("Not Specified")),
 			Count(q.name).distinct(),
-			Round((Count(q.name).distinct() / total_quotations * 100), 2),
+			# `* 100.0` before dividing: count/count is integer division on Postgres (truncates to 0)
+			Round((Count(q.name).distinct() * 100.0 / total_quotations), 2),
 			Sum(q.base_net_total),
 			Round((Sum(q.base_net_total) / total_value * 100), 2),
 		)
diff --git a/erpnext/selling/report/lost_quotations/test_lost_quotations.py b/erpnext/selling/report/lost_quotations/test_lost_quotations.py
new file mode 100644
index 00000000000..857fbb3b897
--- /dev/null
+++ b/erpnext/selling/report/lost_quotations/test_lost_quotations.py
@@ -0,0 +1,63 @@
+# Copyright (c) 2026, Frappe Technologies Pvt. Ltd. and Contributors
+# See license.txt
+
+import frappe
+
+from erpnext.selling.doctype.quotation.test_quotation import make_quotation
+from erpnext.selling.report.lost_quotations.lost_quotations import execute
+from erpnext.tests.utils import ERPNextTestSuite
+
+
+class TestLostQuotations(ERPNextTestSuite):
+	def setUp(self):
+		self.company = "_Test Company"
+		self.reason_a = self._ensure_lost_reason("_Test Lost Reason A")
+		self.reason_b = self._ensure_lost_reason("_Test Lost Reason B")
+
+	def test_lost_quotations_percentage_is_not_integer_divided(self):
+		# `lost_quotations_pct` is count(group) / count(total) * 100. count/count is integer division on
+		# Postgres, which truncates a proper fraction to 0; this asserts the percentage stays fractional.
+		quotations = []
+		# reason A on one quotation, reason B on three -> A is a strict minority of the total
+		quotations.append(self._make_lost_quotation(self.reason_a))
+		for _ in range(3):
+			quotations.append(self._make_lost_quotation(self.reason_b))
+		for qo in quotations:
+			self.addCleanup(self._cancel_and_delete, qo.name)
+
+		_columns, data = execute(
+			frappe._dict({"company": self.company, "timespan": "This Year", "group_by": "Lost Reason"})
+		)
+
+		# row layout: (lost_reason, lost_quotations, lost_quotations_pct, lost_value, lost_value_pct)
+		row_a = next(row for row in data if row[0] == self.reason_a)
+		self.assertEqual(row_a[1], 1)
+		# with integer division this is 0; with correct division it is a positive fraction
+		self.assertGreater(row_a[2], 0)
+		self.assertLess(row_a[2], 100)
+
+	def _ensure_lost_reason(self, name):
+		# only clean up reasons this test created, so a pre-existing master is left intact
+		if not frappe.db.exists("Quotation Lost Reason", name):
+			frappe.get_doc({"doctype": "Quotation Lost Reason", "order_lost_reason": name}).insert()
+			self.addCleanup(self._delete_lost_reason, name)
+		return name
+
+	@staticmethod
+	def _delete_lost_reason(name):
+		if frappe.db.exists("Quotation Lost Reason", name):
+			frappe.delete_doc("Quotation Lost Reason", name, force=1)
+
+	def _make_lost_quotation(self, reason):
+		qo = make_quotation(company=self.company, qty=1, rate=100)
+		qo.declare_enquiry_lost([{"lost_reason": reason}], [])
+		return qo
+
+	@staticmethod
+	def _cancel_and_delete(name):
+		if not frappe.db.exists("Quotation", name):
+			return
+		doc = frappe.get_doc("Quotation", name)
+		if doc.docstatus == 1:
+			doc.cancel()
+		frappe.delete_doc("Quotation", name, force=1)