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.