STL profit soars over 4x in 9MFY26

May 04, 2026 (MLN): Supernet Technologies Limited (PSX: STL) reported a phenomenal 4.1x surge in its consolidated net profit for the nine months ended March 31, 2026, reaching Rs333.68m compared to a restated Rs81.01m in the corresponding period last year.

Reflecting this massive bottom-line expansion, the company's basic and diluted earnings per share (EPS) skyrocketed to Rs2.89 from Rs0.74 in 9MFY25.

The primary catalyst for this exceptional profitability was an explosive expansion in the company's top line. STL’s net revenue posted a staggering 2.8x year-on-year increase, surging to Rs5.72bn from Rs2.06bn.

While the cost of services also grew significantly by 2.7x to Rs4.34bn, the sheer volume of revenue growth easily outpaced these direct costs. Consequently, the company secured a spectacular  expansion in its gross profit, which climbed to Rs1.38bn compared to Rs448.98m in the prior year.

On the operational front, overheads grew rapidly to support the massive scale-up in operations.

Administrative and other expenses rose by 2.8x to Rs517.51m, and distribution costs spiked to Rs225.37m.

The company also booked higher expected credit losses (up 151% to Rs49.64m) and saw a sharp 90% plunge in other income, which fell to Rs13.73m.

However, STL did benefit from a positive exchange gain of Rs3.54m (a turnaround from a loss last year).

Despite the heavy surge in operating expenses and the drop in secondary income, the sheer strength of the gross margin expansion drove the operating profit up by 94% to Rs604.02m.

Below the operating line, Supernet found substantial relief in its debt servicing. Finance costs plummeted by 55%, dropping to Rs50.86m from Rs114.16m in 9MFY25.

Propelled by the expanding gross margins and slashed finance costs, the profit before taxation surged to Rs483.03m (after accounting for a Rs70.13m levy).

The company then absorbed a 78% higher taxation expense of Rs149.35m. Despite this higher tax burden, the phenomenal top-line and pre-tax gains allowed Supernet Technologies to securely close the nine-month period with a massive leap in its final net profit, settling at Rs333.68m.

Copyright Mettis Link News