NETSOL delivers 6x jump in 9MFY26 profit

May 04, 2026 (MLN): NetSol Technologies Limited (PSX: NETSOL) reported an extraordinary 6x surge in its consolidated net profit for the nine months ended March 31, 2026, reaching a remarkable Rs1.67bn compared to Rs278.86m in the corresponding period last year.

Reflecting this massive bottom-line explosion, the company's basic earnings per share (EPS) skyrocketed to Rs19.36 from Rs3.20, while the diluted EPS jumped to Rs19.18 from Rs3.15 in 9MFY25.

The primary catalyst for this phenomenal profitability was a robust top-line expansion combined with highly favorable cost dynamics.

NETSOL’s net revenue from contracts with customers posted a strong 41% year-on-year increase, rising to Rs9.34bn from Rs6.61bn.

Crucially, the cost of revenue grew at a much slower pace of 13%, settling at Rs4.70bn. Because revenue growth comfortably outpaced direct production costs, the company secured a spectacular 89% expansion in its gross profit, which climbed to Rs4.64bn from Rs2.45bn in the prior year.

On the operational front, overheads grew rapidly to support the scaling business. Selling and promotional expenses surged by 66% to Rs1.09bn, while administrative expenses increased by 28% to Rs1.44bn.

Despite these surging operating costs, the sheer strength of the gross margin expansion easily absorbed the pressures, driving the operating profit up by a phenomenal 3.1x to Rs2.11bn.

Below the operating line, NETSOL saw mixed but largely favorable dynamics. The company successfully reduced its finance costs by 25% to Rs135.20m and slashed "other operating expenses" by 39% to Rs277.80m.

These savings helped offset a sharp 50% drop in "other income," which halved to Rs213.68m from Rs429.28m last year.

Propelled by the expanding gross margins and tight control over non-operating expenses, the profit before final taxes and income tax surged to Rs1.92bn.

The company then absorbed a 32% higher final tax/levy charge of Rs246.90m. Ultimately, the immense operational strength allowed NetSol Technologies to securely close the nine-month period with an almost six-fold leap in its final net profit, settling at Rs1.67bn.

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