NetSol Technologies profit surges over 11x in 1HFY26

February 12, 2026 (MLN): NetSol Technologies Limited (PSX:NETSOL) reported a net profit of Rs718.3m for the half year ended December 31, 2025,  a remarkable 11.2 times increase from the Rs64.1m profit recorded in the same period last year.

The company's earnings per share surged to Rs8.35 from Rs0.73 in the corresponding period of the previous year.

The software solutions provider's revenue from contracts with customers rose 37% YoY to Rs5.77bn from Rs4.21bn, demonstrating strong demand for the company's technology products and services.

Cost of revenue increased 20% to Rs3.22bn from Rs2.68bn, resulting in a gross profit of Rs2.55bn, up 66% from Rs1.53bn in the prior period.

The gross profit margin improved significantly to 44.2% from 36.4% in H1 FY2025, indicating enhanced operational efficiency and better cost management.

The net profit margin stood at 12.5% compared to 1.5% in the same period last year, reflecting the company's dramatic improvement in profitability.

Selling and promotional expenses increased 43% to Rs617.5m from Rs430.3m, while administrative expenses rose 23% to Rs937m from Rs760.2m, which reflects investments in business expansion and operations.

Operating profit surged 2.9 times to Rs995.3m from Rs343.1m in H1 FY2025, demonstrating strong operational leverage despite higher expenses.

Other operating expenses declined 39% to Rs213.2m from Rs351.5m, providing additional support to the bottom line.

Finance costs decreased 27% to Rs94.8m from Rs130m, reflecting improved financial management and lower borrowing costs.

Other income dropped 56% to Rs153.9m from Rs351.1m, though this decline did not materially impact the overall strong performance.

Profit before final taxes and income tax reached Rs841.3m, up 4 times from Rs212.7m in the prior period.

Final tax and levies decreased 17% to Rs123m from Rs148.6m. Profit before income tax stood at Rs718.3m, representing 11.2 times increase from Rs64.1m.

Copyright Mettis Link News