NETSOL FY26 profit skyrockets 70%

September 29, 2026 (MLN): NetSol Technologies Limited (PSX: NETSOL) reported a 70% surge in its consolidated net profit for the fiscal year ended June 30, 2026, reaching Rs2.35bn compared to Rs1.39bn in the preceding year.

Alongside the financial results, the board recommended a final cash dividend of Rs1.5 per share.

Reflecting this bottom-line growth, basic earnings per share (EPS) for the year expanded to Rs27.25 (diluted EPS of Rs27.01), up from Rs15.97 (diluted EPS of Rs15.74) in FY25.

The primary catalyst behind the performance was strong core IT contract revenue growth alongside a 42% expansion in gross profit.

Consolidated net revenue from contracts with customers grew by 26% year-on-year to Rs12.51bn, up from Rs9.91bn in FY25.

Although cost of revenue rose 14% to Rs6.35bn, gross profit jumped to Rs6.16bn compared to Rs4.35bn in the prior year.

On the operational front, overheads expanded to support global service delivery and market penetration.

Selling and promotional expenses rose 18% to Rs1.36bn, while administrative expenses grew 35% to Rs1.97bn. Despite these outlays, operating profit surged 62% to Rs2.83bn.

Below the operating line, NETSOL benefited from a 47% drop in other operating expenses (Rs356.38m) and a 28% reduction in finance costs (falling to Rs164.61m).

These savings helped cushion a 62% decline in "other income" (Rs315.57m), pushing profit before taxation up 70% to Rs2.35bn (after deducting final tax levies of Rs270.71m).

With zero corporate income tax recorded for the period, NetSol Technologies Limited securely closed the fiscal year with a consolidated net profit of Rs2.35bn.

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