NETSOL 1QFY27 profit jumps over 4-fold

October 30, 2026 (MLN): NetSol Technologies Limited (PSX: NETSOL) reported a 4.4x surge in its condensed interim consolidated net profit for the first quarter ended September 30, 2026 (1QFY27 / 3MFY27), reaching Rs326.64m compared to Rs74.73m in the corresponding period of the previous fiscal year.

Reflecting this sharp earnings growth, basic earnings per share (EPS) for the three-month period surged to Rs3.77, up from Rs0.88 in 3MFY26. Diluted EPS also advanced  to Rs3.74 compared to Rs0.86 in the prior-year period.

The primary catalyst driving profitability was substantial gross margin expansion coupled with steady top-line growth.

Net revenue from contracts with customers grew 7% to Rs2.71bn against Rs2.54bn in 3MFY26. Cost of revenue declined 14% to Rs1.35bn (down from Rs1.56bn), which propelled gross profit up 39% to Rs1.36bn compared to Rs978.77m in the comparative quarter. Consequently, the company's gross profit margin expanded to 50.27% from 38.49% in 3MFY26.

On the operational front, selling and promotional expenses declined 11% to Rs262.82m (down from Rs296.31m), while administrative expenses increased 35% to Rs620.40m from Rs460.08m.

Despite the rise in administrative overheads, operating profit surged 116% to Rs480.55m compared to Rs222.39m in the prior-year period.

Below the operating line, other operating expenses rose 39% to Rs198.51m, which was cushioned by a 24% increase in other income to Rs98.09m (up from Rs79.21m) and a 34% contraction in finance costs to Rs31.15m from Rs47.04m.

Final taxes and levies declined 40% to Rs22.35m compared to Rs37.01m in 3MFY26.

With no corporate income tax charge booked, NetSol Technologies Limited concluded the first quarter with a consolidated net profit of Rs326.64m.

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