ITANZ FY26 profit jumps 69%

July 28, 2026 (MLN): Itanz Technologies Limited (PSX: ITANZ) reported a strong 69% increase in its consolidated net profit for the fiscal year ended June 30, 2026, reaching Rs583.43m compared to Rs344.84m in the preceding year.

The core operational driver behind the performance was a powerful top-line expansion combined with strict direct cost control.

ITANZ’s net revenue from contracts with customers surged by 74% year-on-year to reach Rs767.18m, up from Rs441.52m.

Direct costs grew by a controlled 8% to Rs153.76m, allowing the gross profit to more than double with a 2.05x surge, reaching Rs613.42m compared to Rs298.69m in FY25.

Operating overheads grew modestly as administrative expenses rose 24% to Rs64.65m. While "other income" declined by 21% to Rs39.74m, the company benefited from a positive turnaround of Rs10.88m in expected credit loss reversals (compared to an allowance hit last year).

Driven by the massive gross margin gains, operating profit surged 2.13x to Rs599.39m.

Below the operating line, ITANZ absorbed a 2.16x spike in finance costs (Rs19.57m) and a 3.55x increase in provision for levies (Rs14.24m). This brought the profit before income taxes to Rs565.58m, up 2.11x year-on-year.

The final bottom line was influenced by tax credits. ITANZ recorded a reduced income tax credit of Rs17.85m compared to a hefty Rs76.63m credit in FY25.

Despite the smaller tax benefit, the robust operational performance pushed final net profit up by 69% to settle at Rs583.43m.

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