Supernet Limited (PSX: GEMSPNL) has reported a 27% increase in profit after taxation for the first quarter of the fiscal year 2026, reaching Rs161.2 million compared to Rs126.8 million in the same quarter last year. The company’s earnings per share also rose 18% to Rs1.22 from Rs1.03, reflecting solid operational performance and sustained growth in Pakistan’s telecommunications infrastructure market. Supernet’s strong results highlight its ability to maintain profitability through a balanced approach to cost management and service expansion despite ongoing economic challenges.
Net revenue for the quarter stood at Rs1.87 billion, marking an 8% year-on-year increase from Rs1.74 billion in Q1FY25. This growth reflects steady demand for the company’s ICT and connectivity solutions across its enterprise and institutional clients. Cost of services rose modestly by 3% to Rs1.38 billion, resulting in an improved gross profit of Rs498.8 million—up 23% from Rs406.1 million last year. The gross margin strengthened to 26.6% compared to 23.3% in the previous year’s corresponding quarter, signaling better cost efficiency and improved service delivery performance. The company attributed these gains to effective expense controls and optimized operational workflows that boosted profitability without compromising on service quality.
Administrative and other expenses remained largely stable, rising only 1% to Rs173.6 million from Rs172.3 million in the same period last year. However, distribution costs increased by 11% to Rs62.7 million, reflecting the company’s continued investment in customer outreach and market development initiatives. Other income, on the other hand, declined significantly by 74% to Rs1.34 million compared to Rs5.23 million last year, partially offsetting overall earnings growth. Despite this, Supernet achieved a 42% increase in operating profit to Rs258.7 million, up from Rs182 million in Q1FY25, underscoring its ability to scale operations efficiently.
Finance costs provided additional relief to the bottom line, decreasing 28% to Rs7.84 million compared to Rs10.91 million last year. Profit before taxation and levy rose sharply by 47% to Rs250.9 million from Rs171.1 million in Q1FY25. The company recorded a levy adjustment of Rs30.7 million compared to a positive levy of Rs7.17 million in the prior period, bringing profit before taxation to Rs220.2 million—up 24% from Rs178.3 million a year ago. Tax expenses increased 15% to Rs59 million, aligning with higher profitability.
Supernet concluded the first quarter with a net profit margin of 8.6%, compared to 7.3% in the previous year’s corresponding period. The improvement in financial performance was mainly driven by consistent revenue growth, higher gross margins, and enhanced operating leverage. The company’s continued focus on efficiency and sustainable growth reflects its strong position in Pakistan’s ICT infrastructure sector, serving both corporate clients and public organizations with advanced connectivity and network solutions.
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