NetSol’s earnings halve in 1QFY26
MG News | October 30, 2025 at 04:58 PM GMT+05:00
October 30, 2025 (MLN): NetSol Technologies Limited (PSX: NETSOL) reported a profit after tax (PAT) of Rs74.7 million for the quarter ended September 30, 2025, down 47% from Rs141.3 million in the same period last year.
The company’s net revenue rose 32% year-on-year to Rs2.54 billion, driven by new project implementations and expansion in global contracts.
However, rising costs trimmed profitability as the cost of revenue grew 19% to Rs 1.56 billion, while selling and administrative expenses increased 32% to Rs756 million combined.
Even so, gross profit surged 60% to Rs 979 million, pushing the gross profit margin up to 38.5% from 31.8% a year earlier, indicating improved operational efficiency.
Operating profit climbed to Rs222 million, up from Rs26 million, but a steep 79% drop in other income to Rs79 million from Rs381 million significantly impacted pre-tax earnings.
After accounting for final levies of Rs37 million, NetSol’s net profit margin narrowed to 2.9%, compared to 7.3% in the same quarter last year. Earnings per share stood at Rs 0.88, versus Rs 1.61 previously.
|
Statement of
the profit/ loss for the quarter ended on September 30, 2025 (Rs ‘000) |
|||
|
Particulars |
2025 |
2024 |
% Change |
|
Revenue
from Contracts with Customers - Net |
2,542,625 |
1,925,898 |
+32.0% |
|
Cost of
Revenue |
(1,563,851) |
(1,313,924) |
+19.0% |
|
Gross
Profit |
978,774 |
611,974 |
+59.9% |
|
Selling and
Promotional Expenses |
(296,307) |
(206,491) |
+43.5% |
|
Administrative
Expenses |
(460,078) |
(379,790) |
+21.1% |
|
Operating
Profit |
222,389 |
25,693 |
+765.7% |
|
Other
Operating Expenses |
(142,814) |
(136,156) |
+4.9% |
|
Finance Cost |
(47,040) |
(68,907) |
–31.7% |
|
Other Income |
79,207 |
381,360 |
–79.2% |
|
Profit
Before Final Taxes and Income Tax |
111,742 |
201,990 |
–44.7% |
|
Final Tax /
Levies |
(37,008) |
(60,693) |
–39.0% |
|
Profit
Before Income Tax |
74,734 |
141,297 |
–47.1% |
|
Profit
After Taxation (PAT) |
74,734 |
141,297 |
–47.1% |
|
Earnings
Per Share (EPS) – Basic (Rupees) |
0.88 |
1.61 |
–45.3% |
|
Earnings
Per Share (EPS) – Diluted (Rupees) |
0.86 |
1.59 |
–45.9% |
Related News
| Name | Price/Vol | %Chg/NChg |
|---|---|---|
| KSE100 | 179,571.27 436.67M | 1.06% 1878.35 |
| ALLSHR | 108,600.94 844.23M | 1.00% 1073.54 |
| KSE30 | 53,548.42 162.02M | 0.99% 525.53 |
| KMI30 | 256,725.70 154.74M | 0.76% 1936.43 |
| KMIALLSHR | 70,620.69 563.61M | 0.98% 683.55 |
| BKTi | 48,625.03 36.31M | 1.37% 658.39 |
| OGTi | 37,179.52 8.29M | 0.94% 345.85 |
| Symbol | Bid/Ask | High/Low |
|---|
| Name | Last | High/Low | Chg/%Chg |
|---|---|---|---|
| BITCOIN FUTURES | 60,605.00 | 60,630.00 58,505.00 | 1170.00 1.97% |
| BRENT CRUDE | 73.81 | 75.13 73.67 | -1.45 -1.93% |
| RICHARDS BAY COAL MONTHLY | 115.00 | 0.00 0.00 | 0.75 0.66% |
| ROTTERDAM COAL MONTHLY | 126.25 | 126.25 126.25 | 0.35 0.28% |
| USD RBD PALM OLEIN | 1,135.00 | 1,135.00 1,135.00 | 0.00 0.00% |
| CRUDE OIL - WTI | 70.44 | 71.86 70.34 | -1.48 -2.06% |
| SUGAR #11 WORLD | 14.12 | 14.18 13.86 | 0.10 0.71% |
Chart of the Day
Latest News
Top 5 things to watch in this week
Monetary Aggregates (M3) - Monthly Profile
Pakistan Stock Movers
| Name | Last | Chg/%Chg |
|---|
| Name | Last | Chg/%Chg |
|---|