NetSol Technologies Limited reported a 4.4 times rise in its condensed interim consolidated net profit for the first quarter ended September 30, 2026, reaching Rs. 326.64 million compared with Rs. 74.73 million in the corresponding period of the previous fiscal year. Basic earnings per share (EPS) for the three month period rose to Rs. 3.77 from Rs. 0.88 a year earlier, while diluted EPS advanced to Rs. 3.74 compared with Rs. 0.86. The main reason for the increase in profit was a large expansion in gross margin together with steady growth in revenue, since the company earned more from each rupee of sales while its costs fell during the quarter.
Net revenue from contracts with customers grew 7 percent to Rs. 2.71 billion, against Rs. 2.54 billion in the first three months of the previous fiscal year. The cost of revenue declined 14 percent to Rs. 1.35 billion from Rs. 1.56 billion, which pushed gross profit up 39 percent to Rs. 1.36 billion compared with Rs. 978.77 million in the comparative quarter. As a result, the gross profit margin of the company expanded to 50.27 percent from 38.49 percent. This gain of nearly 12 percentage points in the margin accounts for much of the improvement in the results, and it shows that lower costs mattered as much as higher sales.
On the operating side, selling and promotional expenses declined 11 percent to Rs. 262.82 million from Rs. 296.31 million, while administrative expenses increased 35 percent to Rs. 620.40 million from Rs. 460.08 million. Despite the rise in administrative overheads, operating profit rose 116 percent to Rs. 480.55 million compared with Rs. 222.39 million in the prior year period. Below the operating line, other operating expenses rose 39 percent to Rs. 198.51 million. This was cushioned by a 24 percent increase in other income to Rs. 98.09 million, up from Rs. 79.21 million, and by a 34 percent fall in finance costs to Rs. 31.15 million from Rs. 47.04 million.
Final taxes and levies declined 40 percent to Rs. 22.35 million compared with Rs. 37.01 million in the first quarter of the previous fiscal year. No corporate income tax charge was booked, so the company concluded the first quarter with a consolidated net profit of Rs. 326.64 million. Profit before final taxes and income tax stood at Rs. 348.98 million, up from Rs. 111.74 million, which is an increase of 212 percent. The results for the quarter therefore show higher profit at each level of the income statement, from gross profit through operating profit to the final figure for the period.
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