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NetSol Technologies Limited Interim / Quarterly Report 2026
72248_rns_2026-05-04_36d2c152-6e38-4a93-8ac4-c3a1d3c82c57.pdf
Interim / Quarterly Report
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NETSOL
For the Nine Months
& Quarter Ended
March 31, 2026
Company Profile
BOARD OF DIRECTORS
NAEEM ULLAH GHAURI
Chairman/Non-Executive Director
SALIM ULLAH GHAURI
Chief Executive Officer/Executive Director
OMAR SHAHAB GHAURI
Executive Director
VASEEM ANWAR
Non-Executive Director
HAMNA GHAURI
Non-Executive Director
NOMAN HUSSAIN
Independent Director
HUMA FAKHAR
Independent Director
NETSOL
NETSOL Technologies Limited
AUDIT COMMITTEE
NOMAN HUSSAIN
Chairman
VASEEM ANWAR
Member
HUMA FAKHAR
Member
CHIEF FINANCIAL OFFICER
BCC-ALI SIDDIQUI
COMPANY SECRETARY
SEHRISH
CHIEF INTERNAL AUDITOR
MUHAMMAD ABDUL
WAHAB HAFEEZ
AUDITORS
Crowe Hussain
Chaudhury & Co.
Chartered Accountants
7th Floor, Gulmohar Trade Center,
8 F, Main Market, Gulberg II,
Lahore 54600, Pakistan
LEGAL ADVISOR
CORPORATE LAW
ASSOCIATES
1st Floor Queen's Centre
Shahra-e-Fatima Jinnah
Lahore
SHARE REGISTRAR
VISION CONSULTING
LIMITED
5-C, LDA Flats, 2nd Floor,
Lawrence Road, Lahore.
Tel: +92-42-36283096-97
Fax: +92-42-36312550
BANKERS
- Askari Bank Limited
- Samba Bank Limited
- Meezan Bank Limited
- Dubai Islamic Bank
Pakistan Limited
- Al Baraka Bank
(Pakistan) Limited
- Habib Metropolitan
Bank Limited
- Bank Alfalah Islamic
Limited
- Bank Al Habib Limited
- Habib Bank Limited
CONTACT DETAILS
REGISTERED OFFICE
NETSOL IT Village
(Software Technology
Park)
Lahore Ring Road,
Ghazi Road InteWrchange,
Lahore Cantt. 54792,
Pakistan
Tel: +92-42-111-44-83-00,
+92-42-35727096-7
Fax: +92-42-35701046,
35726740
RAWALPINDI OFFICE
House No. 04, Safari Villas,
Bahria Town, Rawalpindi
Tel: +92-51-5707011
Fax: +92-51-5595376
KARACHI OFFICE
43/1/Q, Amna Villa # 1
Block # 03. P.E.C.H.S.
Karachi-75400
Tel: +92-21-111-638-765
Fax: +92-21-3431-3464
WEB PRESENCE
www.netsolpk.com
[email protected]
[email protected]
For The Nine Months & Quarter Ended March 31, 2026
NETSOL
NETSOL Technologies Limited
Director's Report
On behalf of the Board of Directors of NETSOL Technologies Limited (NETSOL or the Company), we are pleased to present the unaudited condensed financial statements of your company together with its consolidated accounts for the period ended March 31, 2026.
GENERAL OVERVIEW
Northridge Finance, a division of the Bank of Ireland, went live with NETSOL's Transcend Finance platform to support its growth strategy
NETSOL announced the deployment of its Transcend Finance platform for Northridge Finance, a division of Bank of Ireland UK, to optimize its wholesale finance capabilities. Built to simplify and automate dealer funding operations, Transcend Finance's Wholesale Finance System enables dealers, distributors and supply chain stakeholders to achieve greater efficiency, control and scalable growth.
Northridge wanted differentiated and elevated capabilities in wholesale stocking. Transcend Finance empowers them with increased operational agility, automation, faster payments, robust risk management and a richer dealer experience they can use to grow their portfolio.
Tier-one U.S.-based auto captive went live in China on NETSOL's Transcend Finance in a $10M+ deal
A tier-one U.S.-based auto captive finance company went live with the NETSOL's Transcend Finance platform in China under a contract valued at over $10 million. This implementation marked a significant step forward in the client's modernization and technology-driven growth. They are an existing client of NETSOL's, using its technology solutions in the United States.
With a growing portfolio of premier clients in China, including global OEMs, captives and local finance companies, NETSOL has solidified its reputation as the partner of choice for organizations seeking innovation, compliance and scalability in automotive finance operations.
FINANCIAL PERFORMANCE
Comparisons of un-audited financial results for the third quarter ended March 31, 2026 with the corresponding period of the fiscal year 2025 and cumulative results for the nine months ended March 31, 2026, with those of March 31, 2025, of the company are given below:
| STAND-ALONE FINANCIAL STATEMENTS | Jan-Mar 2026 | Jan-Mar 2025 | Jul-Mar 2026 | Jul-Mar 2025 |
|---|---|---|---|---|
| Rupees in millions | ||||
| Revenue | 3,247 | 2,287 | 7,882 | 6,441 |
| Gross profit | 1,933 | 858 | 3,613 | 2,445 |
| Net profit | 1,127 | 177 | 1,394 | 347 |
| EPS – basic (in PKR) | 13.01 | 2.06 | 16.18 | 3.98 |
| EPS – diluted (in PKR) | 12.94 | 2.03 | 16.03 | 3.92 |
| EBITDA per share – diluted (in PKR) | 14.71 | 3.05 | 19.45 | 5.79 |
Revenues during the quarter ended March 31, 2026 increased by 42% compared to the revenues posted in the same quarter of previous fiscal year. The company generated net revenue of PKR 3,247 million as compared to PKR 2,287 million during the corresponding period last year. The revenue stream for the current quarter is fueled with the additional license revenue of PKR 1,273 million to current customers. On the services side, the Company recorded revenue of PKR 556 million, compared to PKR 1,046 million in the previous fiscal year. Meanwhile, Subscription and support revenue increased from PKR 1,241 million to PKR 1,418 million in the current quarter. This growth is primarily driven by customers transitioning into the maintenance phase following successful project implementations.
Company reported a gross margin of 60%, as compared to the corresponding period where these margins were recorded at 38%. The Company posted a net profit of PKR 1,127 million compared to a net profit of PKR 177 million in the comparable period. Earnings per basic & diluted share were PKR 13.01 and PKR 12.94 respectively, in comparison of earnings of PKR 2.06 and PKR 2.03 per basic & diluted share in the corresponding period of last fiscal year. The company posted a net EBITDA profit of PKR 14.71 per diluted share compared to PKR 3.05 in the comparable period.
For The Nine Months & Quarter Ended March 31, 2026
On year-to-date basis, the Company posted net revenues of PKR 7,882 million compared to PKR 6,441 million in the corresponding period. Gross Margins during the period clocked in at PKR 3,613 million as compared to the corresponding period where margins were recorded at PKR 2,445 million. The Company posted a net profit after tax of PKR 1,394 million in comparison of PKR 347 million during the same period last year. Basic & diluted earnings per share for the nine months ended March 31, 2026 were PKR 16.18 and 16.03 respectively in comparison of PKR 3.98 and 3.92 in the corresponding period. EBIDTA profit for the current nine months period was PKR 19.45 per share compared to PKR 5.79 per share in the preceding period.
The Company also consolidates financial results of its wholly owned subsidiaries "NETSOL Innovation (Pvt) Limited" and "NETSOL Ascent Middle East Computer Equipment Trading LLC" and wholly owned sub-subsidiary "NETSOL Institute of Artificial Intelligence (Pvt) Limited". Net consolidated revenues for the quarter ended March 31, 2026 were PKR 3,572 million compared to PKR 2,400 million in the same period of fiscal 2025. Consolidated gross profit for the quarter was PKR 2,091 million as compared to PKR 919 million in the same period last year. On consolidated basis, the company posted net consolidated profit of PKR 950 million in the current quarter compared to profit of PKR 215 million posted in the same period last year. Basic and diluted earnings per share for the quarter ended March 31, 2026 were PKR 10.98 and PKR 10.91 compared to PKR 2.50 and PKR 2.46 in the same period of last fiscal year.
Future Outlook
NETSOL continues to enhance its reputation as a trusted partner for automotive and equipment OEMs, dealers, brokers and financial institutions worldwide through its unified, AI-enabled Transcend Platform.
The company's products within the Transcend Platform have recently undergone a series of upgrades and enhancements, aimed at strengthening functionality, improving performance and delivering a more seamless user experience for clients. These ongoing advancements are expected to further elevate performance, refine user experience and deliver greater scalability for clients across global markets.
Looking ahead, the company will continue to empower financial institutions globally through Transcend Finance – its core finance and leasing solution designed to help lenders, captives and commercial financiers oversee the entire financing journey with greater insight, accuracy and control, while streamlining processes and enabling confident growth.
Transcend Retail, the company's digital automotive retail platform, is expected to build on its growing momentum among leading dealer groups and dealerships in the United States, with a strategic focus on expanding adoption. Transcend Retail is positioned to further transform the vehicle purchasing journey while enabling retailers to drive stronger performance and profitability.
Complementing these key solutions, NETSOL is continuing to promote Transcend Marketplace, Transcend Consultancy and Transcend AI Labs, which have built an integrated suite that supports the full spectrum of requirements across both financial services and automotive retail industries.
By harnessing AI-enabled capabilities within the Transcend Platform, NETSOL will continue to support clients in enhancing productivity, enabling smarter decision-making and driving sustainable, long-term growth in an increasingly dynamic business environment.
NETSOL's healthy pipeline underscores increasing demand and the steady broadening of the company's clientele, spanning Tier-1, Tier-2 and Tier-3 organizations. This targeted strategy allows enterprises of varying scale to benefit from flexible, forward-thinking technology aligned with their unique operational goals.
Through continued presence at major industry conferences, conventions, summits and other events across North America, Europe, APAC and the Middle East, NETSOL demonstrates its dedication to innovation, knowledge-sharing and meaningful collaboration. These platforms serve as important opportunities to demonstrate the capabilities of the Transcend Platform, connect directly with prospects and exchange perspectives on evolving industry dynamics.
In parallel, NETSOL has significantly strengthened its digital marketing capabilities over the past two years, establishing it as a key driver of brand visibility, lead generation and client engagement. Through data-driven campaigns, targeted outreach and integrated digital strategies, the company continues to expand its global reach, support pipeline growth and enhance conversion across priority markets.
NETSOL remains committed to advancing technological development, enhancing operational performance and fostering strategic alliances. With an emphasis on innovation, its deep domain expertise and exceptional client support, NETSOL is well-positioned to expand its presence and reinforce its standing across its core sectors. The company will continue to equip organizations to confidently navigate future challenges while unlocking lasting business value.
Built on a future-ready foundation designed to support emerging models such as EV adoption, subscriptions, fleet solutions and embedded finance, NETSOL continues to empower enterprises to scale confidently across next-generation mobility and financial ecosystems.
Acknowledgement
The Board of Directors places on record its appreciation for the continued support by its shareholders, valued customers, government agencies and financial institutions which enabled the company to achieve these results. The board would also like to express its appreciation for the services, loyalty and efforts being continuously rendered by the executives and all the staff members of the company and hope that they will continue with the same spirit in future.
On behalf of the Board
Salim Ullah Ghauri
Chief Executive Officer
Director
April 30, 2026
Omar Shahab Ghauri
ڈائریکٹرز جائزہ رپورٹ
بمیں خوشی ہے کہ ہم میٹ سول نیٹا لوجی لینڈ کے بورڈ آف ڈائریکٹرز کی جانب سے کمپنی کی 31 مارچ 2026 کو کم ہونے والے عرصہ کے لیے غیر آڈٹ شدہ مالیاتی گوشوار سے نٹسول مجموعی مالیاتی گوشوار سے پیش کر رہے ہیں۔
عمومی جائزہ: (General Overview)
اپنی عمومی حکمت عملی میں معاونت کے لئے پیک آف آئر لینڈ کا ایک ڈویژن Northridge Finance میٹ سول کے Transcend Finance پلیٹ فارم کے ساتھ Live ہوا
میٹ سول نے پیک آف آئر لینڈ برطانیہ کے ڈویژن Northridge Finance کے لئے اپنے Transcend Finance پلیٹ فارم کا اطلاق کیا تاکہ ادارہ اپنی wholesale finance (استعداد کو وسعت دے سکے) ڈھیر کے فنڈک آئی ٹیشن کو آسان اور خودکار بنانے کے لئے تیار کیا گیا Wholesale Finance System اور Transcend Finance ڈھیرز، ڈسٹری بیورز اور سیاہی چین اسٹیک ہولڈرز کو میٹرکٹر کر دی ہے، لہذا وہ اپنے پیٹرک موبائل کر نے میں مدد کرتا ہے۔
Northridge سول نیل اسٹائنگ میں منٹردار اعلیٰ درجے کی صلاحیتوں کو حاصل کرنا چاہتا تھا۔ Transcend Finance میں اضافی آپریٹیشن رپورٹڈ، خودکار عمل، ادا کیجیوں میں رہائی، مربوط ریک میٹمنٹ اور ڈھیرچر میں فراہم کی کے قابل بنا تا ہے، جسے ادارہ اپنے پیٹرک موبائل میں بہتری کے لئے استعمال کر سکتا ہے۔
Tier-one امریکی auto captive چین میں 10 ملین ڈالر سے زائد کے معاہدہ کے تحت میٹ سول کے Transcend Finance کے لئے Live ہوا
țire-one امریکی auto captive چین میں 10 ملین ڈالر سے زائد مالیت کے معاہدہ کے تحت میٹ سول کے Transcend Finance کے لئے Live ہوا، اس اطلاق نے کاٹنے کی جدت پسند اور نیٹا لوجی پیشی نمونہ میں ایک اہم قدم آگے بڑھایا۔ وہ میٹ سول کے پرانے کا ٹکٹ میں جو امریکی میں کمپنی کے نیٹا لوجی سلوٹر استعمال کر رہے ہیں۔
چین میں بڑے کاٹن، ٹیمول، OEMs، اشتر ٹن کیسیوں اور ایکلائٹا ٹن کیسیوں کے پیٹرک موبائل میں اضافہ کے ساتھ میٹ سول نے automotive finance آپریٹیشن میں جدت ٹیمول اور وسعت پزری کے منتہاٹی اداروں کے لئے اونٹین انتخاب کے طور پر اپنی سائیکلو میٹرو لکیا ہے۔
مالیاتی کارکردگی: (Financial Performance)
31 مارچ 2026 کو کم ہونے والی تیسری سالی مع 2025 کی اہل مدت کے ساتھ اور 31 مارچ 2026 کو کم ہونے والی نوںالی مع 31 مارچ 2025 کی اہل مدت کے ساتھ غیر آڈٹ شدہ مالیاتی گوشوار سے کے نتائج کا موازنہ درج ذیل ہے۔
| تعمیرات | جنوری 2026 | جنوری 2025 | جنوری 2026 | % (2025) |
|---|---|---|---|---|
| محصولات (ملین میں) | 3,247 | 2,287 | 7,882 | 6,441 |
| خام منافع (ملین میں) | 1,933 | 858 | 3,613 | 2,445 |
| صافی تنہا (ملین میں) | 1,127 | 177 | 1,394 | 347 |
| منافع فی حصہ بنیادی (روپوں میں) | 13.01 | 2.06 | 16.18 | 3.98 |
| منافع فی حصہ تحلیل شدہ (روپوں میں) | 12.94 | 2.03 | 16.03 | 3.92 |
| EBITDA' فی حصہ تحلیل شدہ (روپوں میں) | 14.71 | 3.05 | 19.45 | 5.79 |
31 مارچ 2026 کو کم ہونے والی سالی کی محصولات پچھلے مالی سال کی اہل سالی میں درج ہونے والی محصولات کے مقابلے میں 42 فیصد اضافہ ہوا، کمپنی گزشتہ سال کے اسی عرصے کے دوران 2,287 ملین روپے کے مقابلے میں 3,247 ملین روپے کی خالص محصولات حاصل کرنے میں کامیاب رہی ہے۔ موجودہ سالی کے لیے محصولات کا سلسلہ موجودہ صارفین کو 1,273 ملین روپے کے
اضافی اُنہیں کی مصوالات سے ہوا ہے۔ خدمات مصوالات کی مہم، کمپنی نے گذر شدہ مالی سال کی اہی سرما ہی میں 1,046 ملین روپے کے مقابلے میں 556 ملین روپے کی مصوالات موجودہ سرما ہی میں درج کی ہیں۔ دریں اثناء، سیکرٹریشن اور سپورٹ (بحالی) کی مصوالات 1,241 ملین روپے سے بڑھ کر 1,418 ملین روپے ہوگی ہیں۔ یہ اضافی بنیادی طور پر منصوبوں کے کامیاب نفاذ کے بعد کچھ بھال کے مرحلے میں داخل ہونے والے صارفین کی وجہ سے ہوتی ہے۔
کمپنی نے اہی مدت کے مقابلے میں 60 فیصد کا مجموعی مارچن درج کیا جہاں یہ مارچن 38 فیصد درج کیے گئے تھے۔ کمپنی نے گذر شدہ سال 177 ملین روپے خالص منافع کے مقابلے میں 1,127 ملین روپے خالص منافع کما یا ہے۔ گذر شدہ مالی سال کی اہی مدت میں فی حصہ کی بنیادی اور تحلیل شدہ آمدنی ہائترٹیب 2.06 اور 2.03 روپے کے مقابلے میں ہائترٹیب 13.01 اور 12.94 روپے تھی۔ کمپنی نے گذر شدہ عرصے 3.05 روپے تحلیل شدہ فی حصہ خالص EBITDA منافع کے مقابلے میں موجودہ سرما ہی میں 14.71 روپے تحلیل شدہ فی حصہ کا خالص EBITDA منافع درج کیا ہے۔
سال بہ روز کی بنیاد پر، کمپنی نے اہی مدت میں خالص مصوالات گذر شدہ سال 6,441 ملین روپے کے مقابلے میں 7,882 ملین روپے کام بتایا ہے۔ اس مدت کے دوران مجموعی مارچن اہی مدت کے مقابلے 3,613 ملین روپے تک پہنچ گئے جہاں مارچن 2,445 ملین روپے درج کیے گئے تھے۔ کمپنی نے گذر شدہ سال کی اہی مدت کے دوران 347 ملین روپے کے مقابلے میں 1,394 ملین روپے کا بعد ازنگے خالص منافع کما یا ہے۔ 31 مارچ 2026 کو ختم ہونے والے نو مانی کے لئے فی حصہ بنیادی اور تحلیل شدہ آمدنی ہائترٹیب گذر شدہ مہم 3.98 اور 3.92 روپے کے مقابلے میں ہائترٹیب 16.18 اور 16.03 روپے درج کی ہے۔ موجودہ نو مانی مدت کے لیے EBITDA منافع 19.45 روپے فی حصہ درج کیا ہے جو گذر شدہ مہم 5.79 روپے فی حصہ تھا۔
کمپنی نے اپنے مکمل ملحقی ڈپلی ادارہ "میت سول انو ونشن (پرائیویٹ) لینڈ"، "میت سول اینٹ ندل اینٹ" کیو مینٹ ٹریڈنگ ایل ایل ای "اور اس کے مکمل ملحقی ڈپلی ادارہ " میت سول انسٹی ٹیوٹ آف آرٹینیشل انٹیلی کیشن (پرائیویٹ) لینڈ" کے مجموعی مالیاتی گوشوار سے شامل کر دیئے ہیں۔ 31 دسمبر 2026ء کے ختم ہونے والی سرما ہی کیلئے نظر مجموعی مصوالات 3,572 ملین روپے ہیں جو 2025ء مالی سال کی مدت میں 2,400 ملین روپے درج کی گئی تھی۔ مجموعی خام منافع گزشتہ مالی سال کی اہی سرما ہی کے 919 ملین روپے کے مقابلے میں موجودہ سرما ہی میں 2,091 ملین روپے ہے۔ مجموعی بنیاد پر، کمپنی نے گذر شدہ سال کی اہی مدت میں 215 ملین روپے نظر مجموعی منافع کے مقابلے میں موجودہ سرما ہی میں 950 ملین روپے کا نظر مجموعی منافع درج کیا ہے۔ 31 دسمبر 2026 کو ختم ہونے والی سرما ہی کے لئے فی بنیادی اور تحلیل شدہ آمدنی گذر شدہ مہم 2.50 اور 2.46 روپے فی حصہ منافع کے مقابلے اس مدت میں 10.98 اور 10.91 روپے بنیادی اور تحلیل شدہ فی حصہ منافع درج کیا ہے۔
مستقتل کا نظر (Future Outlook)
میت سول اپنے مخلوط، AI پینٹی Transcend پلیٹ فارم کے ذریعے دنیا بھر میں آئو مونیواور آلات OEMs، ڈپلرز، پروگرز اور مالیاتی اداروں کے لئے بھر و سمنر شراکت دائر کی حیثیت سے اپنی سائیکو بڑھا رہا ہے۔
Transcend پلیٹ فارم حال ہی میں کمپنی کی مصنوعات میں مختلف اپ گریڈز اور اضافوں کے عمل سے گزر رہے ہیں کا مقصد کام کرنے کی صلاحیت کو بڑھانا، کارکردگی بہتر کرنا اور صارفین کے لئے رکاوٹوں سے پاک صارف کا تجربہ فراہم کرنا ہے۔ ان جاری ہیں راتوں سے کارکردگی میں مزید اضافہ، صارف تجربہ میں کبھار اور عالمی منذروں میں صارفین کے لئے مزید وسعت پذیری فراہم کرنے کی توقع کی جارہی ہے۔
مستقتل میں، کمپنی اپنے مرکزی فائنس اینڈ لیبرنگ سلوشن Transcend Finance کے ذریعے عالمی سطح پر مالیاتی اداروں کو ٹوٹیفٹر بنانے کا عمل جاری رکھے گی۔ اس سلوشن کا مقصد طریقے بائے کار کو ایک بہت دیتے اور مربوط مو بڑھاتے ہوئے قرض داروں، اشتراک کیتیوں اور کوشش سرما بیداروں کو ہار کیے بینی، شفافیت اور کنٹرول سے عمل مالیاتی عمل پر گمراہی رکھنے میں مدد فراہم کرنا ہے۔
توقع کی جارہی ہے کہ کمپنی کا ڈیجیٹل آئو مونیوریشل پلیٹ فارم Transcend Retail ریاست ہائے متحدہ امریکہ کے معروف ڈپلرگروپوں اور ڈپلرشیوں میں اپنی سائیکو مضبوط کر رہا ہے اور اس کو اولین انتخاب بنانے کی بھر پور کوشش کی جارہی ہے۔ Transcend Retail گاڑیوں کی خرید کے عمل میں مزید تہہ یلیاں لانے کے لئے ہلکل تیار ہے جہاں ریلیفرز مضبوط کارکردگی اور منافع بڑھانے کے قابل ہوجائیں گے۔
ان مرکزی سلوشنز سے متاثر ہوتے ہوئے میت سول Transcend Marketplace, Transcend Consultancy اور Transcend AI Labs کو فروغ دے رہا ہے۔ جس نے ایک مضبوط سافٹ ویئر بنایا ہے جو مالیاتی خدمات اور آئو مونیوریشل انٹر سرپرکلی ٹیم پر ضروریات کا احاطہ کرتا ہے۔
Transcend پلیٹ فارم میں AI پینٹی صلاحیتوں کو بروے کار لا تے ہوئے، میت سول انتہائی متحرک اور تہہ یل ہوتے ہوئے کاروباری ماحول میں صارفین کو اپنی پیداواری صلاحیت کو بڑھانے، بہتر فیصلہ سازی اور ذاتی، فویل مدتی مموکی جانب سفر کے قابل بنانے میں مدد جاری رکھے گا۔
میت سول کی مضبوط پاپ لائن Timer-II، Tier-III اور Tier-III پینٹی اداروں جیسے میت سول کے صارفین کو وسعت دینے اور طلب میں اضافی کو نمایاں کرتی ہے۔ پیچھے بھی حکمت عملی مختلف صلاحیتوں کے
حامل کاروباری اداروں کو اپنے منیٹروآپپیشنل اہداف کے صین مطابق لکھیدا راور جدید ترین نیتنا لوئی سے فاٹھاوا تھا نے میں مدد دیتی ہے۔
شہلی امریکہ، یورپ، APAC اور مشرقی وسطی میں بڑی صنعتی کاغذ، سون، کٹا تھوڑا، سنس اور دیگر تیز بیات میں لگا تا رشروت کے ذریعے، نیٹ سول جدت، علم کی تقسیم اور باہمی تعاون کے لیے اپنی آئین کا مظاہرہ کرتا ہے۔ یہ پلیٹ فارمز Transcend پلیٹ فارم کی صلاحیتوں کو اجاگر کر نے، ممکنہ صارفین کے ساتھ براہ راست رابطہ کرنے اور بدلتے ہوئے صنعتی محرکات پر تبادلہ خیال کرنے کا خصوصی موقع فراہم کرتے ہیں۔
علاوہ ازیں، نیٹ سول نے گذرشدہ برسوں میں اپنی ڈسکیفیل مارکیٹنگ کی صلاحیتوں کو واضح طور پر مضبوط کیا ہے۔ جس نے براٹل کی فائٹش، لیڈ جنزیشن اور صارف کے ساتھ رواہا میں اپنا لو با منوایا ہے۔ ڈیناپر مینی campaigns، خصوصی رساٹی اور مربوط ڈسکیفیل حکمت عملی کے ذریعے، کبھی عالمی سطح پر اپنی موجودگی کو وسعت اور اپنی نمو کے وسائل کو سہارا دے دی اور ترتیبی منڈ یوں میں تہہ یلی کو بڑھا دی ہے۔
نیٹ سول تعلیمی ترقی کو جاری رکھنے، آپپیشنل کارکردگی کو بڑھا نے اور اسٹریٹنگ اتھارگوئر واقع دینے کے لیے کو شاں ہے۔ جدت، مختلف شعبوں میں مہارت اور غیر معمولی صارف سپورٹ پر زور دینے کے علاوہ نیٹ سول اپنی موجودگی کو بڑھا نے اور بنیادی شعبوں میں اپنے قیام کو مضبوط کرنے کے لیے، کبھی پوزیشن میں ہے۔ کبھی طویل مدتی کاروباری قدر کو مزید بڑھاتے ہوئے مستقبل کے تبلیغات سے اعتماد کے ساتھ نہرہ آزما ہونے کے لئے اپنے ادارے میں جدت لائی رہے گی۔
مستقلی کے لیے تیار بنیاد کے تحت جاری EV adoption، سوسٹر پینز، fleet سلوشنز اور embedded فنانس جیسے اہم رتے ہوئے ماڈلز کو سپورٹ کرنے کے لیے نیٹ سول کاروباری اداروں کو next-generation mobility کی تحریک اور مالیاتی اکوٹسٹم میں اعتماد کے ساتھ بنے رہنے میں مدد کر رہا ہے۔
اعتراف (Acknowledgement)
بورڈ آف ڈائریکٹرز کبھی کے تصحیح پافیکان، قابل قدر صارفین، سرکاری اداروں اور مالیاتی اداروں کی جانب سے حمایت و معاونت کے لیے ان کی تحریک کرتا ہے اور خراج تحسین پیش کرتا ہے۔ بورڈ کبھی کے تمام انگریز کیوز اور اسٹاف ممبرز کا ان کی قابل قدر خدمات و فاداری اور ان کی مسلسل کوششوں کو قدر کی نگاہ سے دیکھتا ہے اور انہیں بھی خراج تحسین پیش کرتا ہے اور امید کرتا ہے کہ مستقبل میں بھی ان کی ظاہر انہیں کشش جاری وساری رہیں گی۔
از طرف بورڈ آف ڈائریکٹر
سلیم اللہ نخوری
(چیف انگریز کیوز فیسر)
لاہور
30 اپریل 2026ء
عرشیا ب غوری
(ڈائریکٹر)
Condensed Un-Consolidated Financial Statements
For the Nine Months & Quarter Ended March 31, 2026
NETSOL TECHNOLOGIES LIMITED
CONDENSED INTERIM UN-CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UN-AUDITED)
AS AT MARCH 31, 2026
| | Note | March 31
2026 | June 30
2025 |
| --- | --- | --- | --- |
| | | (Un-audited) | (Audited) |
| ASSETS | | ---Rupees in Thousands--- | |
| Non Current Assets | | | |
| Property and equipment | 5 | 1,303,501 | 1,225,066 |
| Intangible assets | 6 | 290,448 | - |
| Long term investments | 7 | 537,218 | 537,218 |
| Long term contract assets | | 621,322 | 20,846 |
| Long term loans to employees | | 7,180 | 8,590 |
| | | 2,759,669 | 1,791,720 |
| Current Assets | | | |
| Trade debts | 8 | 8,581,024 | 5,740,008 |
| Contract assets | | 2,716,604 | 1,997,736 |
| Loans and advances | | 121,250 | 42,041 |
| Deposits and short term prepayments | | 139,229 | 226,057 |
| Other receivables | | 113,414 | 127,085 |
| Due from related parties | 9 | 636,417 | 362,685 |
| Prepaid tax asset | | 5,712 | 70,468 |
| Short term investments | | 600,000 | 200,000 |
| Cash and bank balances | | 2,208,483 | 3,696,726 |
| | | 15,122,133 | 12,462,806 |
| Total Assets | | 17,881,802 | 14,254,526 |
| EQUITY AND LIABILITIES | | | |
| Share Capital and Reserves | | | |
| Authorized share capital | | | |
| 200,000(June 30, 2025: 200,000) ordinary shares of Rs. 10 each | | 2,000,000 | 2,000,000 |
| Issued, subscribed and paid up capital | 10 | 898,369 | 898,369 |
| Reserves | | 11,522,757 | 10,016,074 |
| Share deposit money | | 537 | 3,868 |
| Shareholders' Equity | | 12,421,663 | 10,918,311 |
| Non Current Liabilities | | | |
| Long term financing | 11 | 68,219 | 13,343 |
| Long term advances | | 15,164 | 5,415 |
| | | 83,383 | 18,758 |
| Current Liabilities | | | |
| Trade and other payables | | 901,987 | 972,870 |
| Contract liabilities | | 2,250,675 | 151,621 |
| Short term borrowings | 12 | 2,180,000 | 2,180,000 |
| Current portion of long term financing | | 39,649 | 8,428 |
| Unclaimed dividend | | 4,445 | 4,538 |
| | | 5,376,756 | 3,317,457 |
| Contingencies and commitments | 13 | - | - |
| Total Equity and Liabilities | | 17,881,802 | 14,254,526 |
The annexed notes 1 to 23 form an integral part of these condensed interim un-consolidated financial statements (un-audited).
U
DIRECTOR
CHIEF EXECUTIVE OFFICER
CHIEF FINANCIAL OFFICER
NETSOL TECHNOLOGIES LIMITED
CONDENSED INTERIM UN-CONSOLIDATED STATEMENT OF PROFIT OR LOSS (UN-AUDITED)
FOR THE NINE MONTHS & QUARTER ENDED MARCH 31, 2026
| Note | Nine Months Ended March 31, 2026 | 2025 | Quarter Ended March 31, 2026 | 2025 | |
|---|---|---|---|---|---|
| (Un-audited) | (Un-audited) | ||||
| --- Rupees in Thousands --- | --- Rupees in Thousands --- | ||||
| Revenue from contracts with customers - net | 14 | 7,882,478 | 6,441,084 | 3,247,132 | 2,287,062 |
| Cost of revenue | (4,269,763) | (3,995,822) | (1,314,204) | (1,428,632) | |
| Gross Profit | 3,612,715 | 2,445,262 | 1,932,928 | 858,430 | |
| Selling and promotional expenses | (715,460) | (604,809) | (262,836) | (211,537) | |
| Administrative expenses | (1,171,168) | (1,103,776) | (382,243) | (353,515) | |
| (1,886,628) | (1,708,585) | (645,079) | (565,052) | ||
| Operating Profit | 1,726,087 | 736,677 | 1,287,849 | 293,378 | |
| Other operating expenses | (255,413) | (458,889) | (71,226) | (204,320) | |
| Finance cost | (134,610) | (180,729) | (40,189) | (51,272) | |
| Other income | 15 | 230,708 | 436,885 | 66,546 | 178,266 |
| (159,315) | (202,733) | (44,869) | (77,326) | ||
| Profit before Final Taxes and Income Tax | 1,566,772 | 533,944 | 1,242,980 | 216,052 | |
| Final tax / levies | 16 | (172,480) | (186,992) | (116,113) | (38,607) |
| Profit before Income Tax | 1,394,292 | 346,952 | 1,126,867 | 177,445 | |
| Income tax | - | - | - | - | |
| Net Profit for the Period | 1,394,292 | 346,952 | 1,126,867 | 177,445 | |
| Earnings Per Share - Basic and Diluted | 17 | ||||
| - Basic | 16.18 | 3.98 | 13.01 | 2.06 | |
| - Diluted | 16.03 | 3.92 | 12.94 | 2.03 |
The annexed notes 1 to 23 form an integral part of these condensed interim un-consolidated financial statements (un-audited).
U
DIRECTOR
CHIEF EXECUTIVE OFFICER
CHIEF FINANCIAL OFFICER
CONDENSED INTERIM UN-CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)
FOR THE NINE MONTHS & QUARTER ENDED MARCH 31, 2026
| Nine Months Ended March 31, | Quarter Ended March 31, | |||
|---|---|---|---|---|
| 2026 | 2025 | 2026 | 2025 | |
| --- Rupees in Thousands --- | --- Rupees in Thousands --- | |||
| Net Profit for the Period | 1,394,292 | 346,952 | 1,126,867 | 177,445 |
| Other Comprehensive Income for the period | ||||
| Items that may be re-classified subsequently to profit or loss | - | - | - | - |
| Items that will not be re-classified subsequently to profit or loss | - | - | - | - |
| Total Comprehensive Income for the Period | 1,394,292 | 346,952 | 1,126,867 | 177,445 |
DIRECTOR
CONDENSED INTERIM UN-CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)
FOR THE NINE MONTHS ENDED MARCH 31, 2026
| Particulars | Share Capital | Reserves | Total Reserves | Share Deposit Money | Total Equity | |||
|---|---|---|---|---|---|---|---|---|
| Capital Reserve | Revenue Reserve | |||||||
| Share Premium | Employee Share Option Compensation Reserve | Treasury Share Reserve | Unappropriated Profit | |||||
| Rupees in Thousands | ||||||||
| Balance as at June 30, 2024 | 898,369 | 304,167 | 264,787 | (184,739) | 9,280,082 | 9,664,297 | 13 | 10,562,679 |
| Net profit for the period | - | - | - | - | 346,952 | 346,952 | - | 346,952 |
| Other comprehensive income for the period | - | - | - | - | - | - | - | - |
| Total comprehensive income for the period | - | - | - | - | 346,952 | 346,952 | - | 346,952 |
| Transactions with owners of the equity | ||||||||
| Payment of final dividend for the period ended June 30, 2024 | (263,511) | (263,511) | - | (263,511) | ||||
| Acquisition of treasury shares | (419,988) | (419,988) | (419,988) | |||||
| Share deposit money received - net | - | (13) | (13) | |||||
| Employee share option reserve | - | - | 4,349 | - | - | 4,349 | - | 4,349 |
| Balance as at March 31, 2025 | 898,369 | 304,167 | 269,136 | (604,727) | 9,363,523 | 9,332,099 | - | 10,230,468 |
| Balance as at June 30, 2025 | 898,369 | 304,167 | 269,136 | (604,727) | 10,047,498 | 10,016,074 | 3,868 | 10,918,311 |
| Net profit for the period | - | - | - | - | 1,394,292 | 1,394,292 | - | 1,394,292 |
| Other comprehensive income for the period | - | - | - | - | - | - | - | - |
| Total comprehensive income for the period | - | - | - | - | 1,394,292 | 1,394,292 | - | 1,394,292 |
| Transactions with owners of the equity | ||||||||
| Re-issue of treasury shares against stock options to employees | - | 418 | (21,398) | 133,371 | - | 112,391 | (112,391) | - |
| Share deposit money received - net | - | - | - | - | - | - | 109,060 | 109,060 |
| Balance as at March 31, 2026 | 898,369 | 304,585 | 247,738 | (471,356) | 11,441,790 | 11,522,757 | 537 | 12,421,663 |
U
DIRECTOR
CONDENSED INTERIM UN-CONSOLIDATED STATEMENT OF CASH FLOWS (UN-AUDITED) FOR THE NINE MONTHS ENDED MARCH 31, 2026
| | March 31
2026 | March 31
2025 |
| --- | --- | --- |
| | ---Rupees in Thousands--- | |
| Profit before final taxes and income tax | 1,566,772 | 533,944 |
| Adjustments for: | | |
| Depreciation - own assets | 190,369 | 231,624 |
| Depreciation of right of use assets | - | 607 |
| Gain on disposal of property and equipment | (24,245) | (980) |
| Foreign exchange loss - net | 42,201 | 10,395 |
| Finance cost | 130,048 | 177,310 |
| Interest income | (199,780) | (434,215) |
| Effect of discounting of long term contract assets | (5,108) | - |
| Employee share option compensation expense | - | 4,349 |
| Provision for expected credit losses | 36,212 | 178,547 |
| | 169,697 | 167,637 |
| Operating profit before working capital changes | 1,736,469 | 701,581 |
| Decrease / (Increase) in current assets | | |
| Trade debts | (2,800,520) | 683,144 |
| Contract assets | (1,431,996) | (749,190) |
| Loans and advances | (77,799) | 44,818 |
| Deposits and short term prepayments | 86,828 | (106,486) |
| Other receivables | 27,376 | (63,124) |
| Due from related parties | (273,732) | 106,038 |
| (Decrease) / Increase in current liabilities | | |
| Trade and other payables | (61,711) | 163,964 |
| Contract liabilities | 2,099,338 | (1,264,053) |
| Cash used in Operations | (2,432,216) | (1,184,889) |
| Levy / final tax paid | (107,724) | (212,204) |
| Dividend paid | (93) | (262,782) |
| | (107,817) | (474,986) |
| Net cash used in Operating Activities | (803,564) | (958,294) |
| CASH FLOWS FROM INVESTING ACTIVITIES | | |
| Payment for acquisition of property and equipment | (289,933) | (176,987) |
| Proceeds from disposal of property and equipment | 26,041 | 1,005 |
| Expenditure on internally generated intangibles | (290,448) | - |
| Short term investments | (400,000) | (200,000) |
| Advance against capital expenditure | 19,333 | (64,545) |
| Interest received | 186,075 | 434,215 |
| Net cash used in Investing Activities | (748,932) | (6,312) |
| CASH FLOWS FROM FINANCING ACTIVITIES | | |
| Acquisition of treasury shares | - | (419,988) |
| Share deposit money - net | 109,060 | (13) |
| Repayment of lease liabilities | - | (1,017) |
| Long term financing obtained | 106,608 | (12,043) |
| Repayment of long term financing | (27,366) | - |
| Short term borrowing - net | (133,798) | 443,994 |
| Long term advances - net | 9,749 | 2,565 |
| Net cash generated from Financing Activities | 64,253 | 13,498 |
| Net decrease in Cash and Cash Equivalents | (1,488,243) | (951,108) |
| Cash and cash equivalents at the beginning of the period | 3,696,726 | 4,647,055 |
| Cash and Cash Equivalents at the End of the Period | 2,208,483 | 3,695,947 |
DIRECTOR
NETSOL TECHNOLOGIES LIMITED
NOTES TO AND FORMING PART OF
THE CONDENSED INTERIM UN-CONSOLIDATED FINANCIAL STATEMENTS (UN-AUDITED)
FOR THE NINE MONTHS ENDED MARCH 31, 2026
Note 1
Legal Status and Nature of Business
NetSol Technologies Limited (“the Company”), incorporated in Pakistan on August 22, 1996 under the repealed Companies Ordinance, 1984, (now The Companies Act, 2017) as a Private Company Limited by shares, was later on converted into Public Limited Company and subsequently listed on Pakistan Stock Exchange on August 26, 2005. The Company is domiciled in Pakistan and is principally engaged in the development and sale of computer software and allied services in Pakistan as well as abroad.
Geographical locations and addresses of its business units are as follows:
| Address / Location | Purpose |
|---|---|
| NetSol IT Village, (Software Technology Park) Lahore Ring Road, Ghazi Road Interchange, Lahore Cantt., Pakistan. | Registered office and Business unit |
| 43/1/Q, Amna Villa 1, Block-6, PECHS Karachi, Pakistan. | Branch office |
| House No. 4, Safari Villas 1, Bahria Town, Rawalpindi, Pakistan. | Branch office |
NetSol IT Village, (Software Technology Park) also includes House No. 4, House No. 5, House No. 6, House No. E - 20, Cricketers Colony, NetSol IT Village (Software Technology Park), Lahore Ring Road, Ghazi Road Interchange, Lahore Cantt.
The Company is also using the branch office of its parent company, situated at Sentral Senayan 2 Building, 16th Floor, Asia Afrika Street No. 8, Senayan, Kebayoran Baru, South Jakarta, DKI Jakarta, 10270, Indonesia.
The Company is a majority owned subsidiary of NetSol Technologies Inc. USA.
Note 2
Basis of Preparation
2.1 Separate financial statements
These financial statements are condensed, interim, un-consolidated financial statements (un-audited) of the Company. Condensed consolidated interim financial statements of the Company are prepared separately.
2.2 Statement of compliance
These condensed interim un-consolidated financial statements (un-audited) have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of:
- International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017; and
- Provisions of and directives issued under the Companies Act, 2017.
Where the provisions of and directives issued under the Companies Act, 2017 differ with the requirements of IAS 34, the provisions of and directives issued under the Companies Act, 2017 have been followed.
These condensed, interim, un-consolidated financial statements are un-audited and do not include all the disclosures and information required in the annual financial statements and should be read in conjunction with the preceding annual published financial statements of the company for the year ended June 30, 2025.
2.3 Basis of measurement
These condensed, interim, un-consolidated financial statements (un-audited) have been prepared under the historical cost convention using accrual basis of accounting.
2.4 Functional and presentation currency
These condensed, interim, un-consolidated financial statements (un-audited) are presented in thousands of Pakistani Rupee, which is the Company's functional currency as well its presentation currency.
Note 3
Material Accounting Policy Information
The accounting policies adopted for the preparation of these condensed, interim, un-consolidated financial statements (un-audited) are consistent with those applied in the preparation of the preceding annual published financial statements of the Company for the year ended June 30, 2025.
NETSOL TECHNOLOGIES LIMITED
Notes to and forming part of the Condensed Interim Un-consolidated Financial Statements (Un-audited)
Note 4
Use of Estimates and Judgements
The preparation of condensed, interim, un-consolidated financial statements (un-audited) in conformity with approved accounting standards, as applicable in Pakistan, requires the management to make judgments, estimates and assumptions that affect the application of policies and the reported amounts of assets, liabilities, income and expenses.
The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods.
In preparing these condensed, interim, un-consolidated financial statements (un-audited), the judgments, estimates and assumptions made by the management were the same as those that were applied to the preceding annual published financial statements of the Company for the year ended June 30, 2025.
Note 5
| Property and Equipment | | March 31
2026 | June 30
2025 |
| --- | --- | --- | --- |
| | Note | (Un-audited)
---Rupees in Thousands--- | (Audited) |
| Operating fixed assets | 5.1 | 1,269,302 | 1,171,534 |
| Advance against capital expenditure | | 34,199 | 53,532 |
| | | 1,303,501 | 1,225,066 |
| 5.1 Operating fixed assets | | | |
| Opening written down value | | 1,171,534 | 1,208,998 |
| Additions during the period / year | 5.1.1 | 289,933 | 279,045 |
| Disposals during the period / year | | (1,796) | (3,265) |
| | | 1,459,671 | 1,484,778 |
| Depreciation charge for the period / year | | (190,369) | (313,244) |
| | | 1,269,302 | 1,171,534 |
5.1.1 Following is the detail of additions / transfers during the period:
At cost
| Furniture and fixtures | 7,218 | 3,921 |
|---|---|---|
| Vehicles | 138,484 | 24,794 |
| Office equipment | 8,346 | 15,514 |
| Computer equipment and installations | 53,593 | 125,849 |
| Other equipment & Installations | 48,132 | - |
| Air conditioners | 1,111 | 3,848 |
| Electric fittings | 32,769 | - |
| Generators | 280 | - |
| Computer softwares | - | 105,119 |
| 289,933 | 279,045 |
Notes to and forming part of the Condensed Interim Un-consolidated Financial Statements (Un-audited)
Note 6
Intangible Assets
| March 31 2026 | June 30 2025 | |
|---|---|---|
| (Un-audited) | (Audited) | |
| ---Rupees in Thousands--- | ||
| Intangibles - Under Development | ||
| Cost | 6.2 | 290,448 |
| Accumulated amortization | - | |
| Net book value | 290,448 |
6.1 NetSol Financial Suite and NFS - Ascent have been fully amortized; however, the Company is still generating revenues from the sale of its licenses, provision of allied services and maintenance.
6.2 The Company is undertaking major system upgrades and modernization of existing legacy solutions, comprising multiple integrated modules and enhanced technology architecture aligned with current industry practices. These developments will add new functionalities, improved scalability and overall system performance. Development costs meeting recognition criteria are capitalized as intangible assets, while other costs are expensed as incurred.
Note 7
Long Term Investments
| Note | (Un-audited) | (Audited) | |
|---|---|---|---|
| ---Rupees in Thousands--- | |||
| At cost | |||
| NetSol Innovation (Private) Limited | 7.1 | 515,000 | 515,000 |
| NetSol Ascent Middle East Computer Equipment Trading L.L.C. | 7.2 | 22,218 | 22,218 |
| 537,218 | 537,218 |
7.1 NetSol Innovation (Private) Limited is a wholly owned subsidiary of the Company which is incorporated in Pakistan. The principal place of business of subsidiary is situated at NetSol IT Village, (Software Technology Park) Lahore Ring Road, Ghazi Road Interchange, Lahore Cantt. Pakistan. Main objective of the investee company is to engage in the business of providing software development & allied IT services. The Company holds 51.5 million (June 30, 2025: 51.5 million) fully paid ordinary shares of Rs. 10 each i.e. 99.999% (June 30, 2025: 99.999%) in this subsidiary.
7.2 This represents 300 ordinary shares of AED 1,000 each, representing 100% (June 30, 2025: 100%) shares in the wholly owned subsidiary NetSol Ascent Middle East Computer Equipment Trading L.L.C. The subsidiary is incorporated in Dubai (U.A.E). Main objective of the investee Company is to provide services related to computer systems and communication equipment and softwares. Principal place of business of the subsidiary is situated in Dubai (U.A.E).
Note 8
Trade Debts
| Note | (Un-audited) | (Audited) | |
|---|---|---|---|
| --- Rupees in Thousands --- | |||
| Related Parties | 8.1 | ||
| Considered good - unsecured | 5,756,622 | 5,007,875 | |
| Considered doubtful - unsecured | 140,025 | 225,827 | |
| 5,896,647 | 5,233,702 | ||
| Other Parties | |||
| Considered good - unsecured | 2,824,402 | 732,133 | |
| Considered doubtful - unsecured | 16,092 | 102,054 | |
| 2,840,494 | 834,187 | ||
| Less: Provision for expected credit losses | (156,117) | (327,881) | |
| 8,581,024 | 5,740,008 |
Note 7, Trade Debts - Continued...
| | | March 31
2026 | June 30
2025 |
| --- | --- | --- | --- |
| 8.1 | Amount receivable from related parties included in trade debts (from exports) are as under: | | |
| | NetSol Technologies (Thailand) Limited | 115,373 | - |
| | NetSol Technologies (Beijing) Co., Ltd. | 3,662,542 | 3,013,655 |
| | NetSol Technologies Australia Pty Limited | 321,555 | 425,819 |
| | NetSol Technologies Americas Inc. | 742,850 | 796,046 |
| | NetSol Technologies Europe Limited | 45,300 | 5,284 |
| | Ascent Europe Limited | 746,717 | 992,898 |
| | NetSol Ascent Middle East Computer Equipment Trading L.L.C. | 262,310 | - |
| | | 5,896,647 | 5,233,702 |
| Note 9 | | | |
| Due from Related Party | | March 31
2026 | June 30
2025 |
| | Note | (Un-audited) | (Audited) |
| | | --- Rupees in Thousands --- | |
| Considered good - unsecured | | | |
| Associates | 9.1 | | |
| NetSol Technologies Americas Inc. | | - | 54,595 |
| NetSol Connect (Private) Limited | | 13,475 | 17,455 |
| NetSol Technologies (Thailand) Limited | | 631 | - |
| NetSol Technologies (Beijing) Co., Ltd. | | 112,405 | 115,741 |
| Wholly owned Subsidiaries | | | |
| NetSol Innovation (Private) Limited | 9.2 | 320,208 | 174,178 |
| NetSol Ascent Middle East Computer Equipment Trading L.L.C. | 9.1 | 180,875 | - |
| NetSol Institute of Artificial Intelligence (Pvt.) Limited | 9.1 | 8,823 | 716 |
| | | 636,417 | 362,685 |
9.1 These relate to the normal course of business of the Company and are interest free.
9.2 This represents loan provided to the Company for meeting working capital requirements and this amount carries interest @ 6 months KIBOR on the outstanding balance at the end of each month.
9.3 Balances with related parties are maintained on a running account basis; therefore, age analysis of amounts due from related parties is not practically possible.
Note 10
Issued, Subscribed and Paid up Capital
| March 31
2026 | June 30
2025 | | March 31
2026 | June 30
2025 |
| --- | --- | --- | --- | --- |
| (Un-audited) | (Audited) | | (Un-audited) | (Audited) |
| No. of shares in Thousands | | | --- Rupees in Thousands --- | |
| 42,686 | 42,686 | Ordinary shares of Rs. 10 each fully paid in cash | 426,862 | 426,862 |
| 47,151 | 47,151 | Ordinary shares of Rs. 10 each allotted as fully paid bonus shares | 471,507 | 471,507 |
| 89,837 | 89,837 | | 898,369 | 898,369 |
10.1 Number of shares outstanding as at the reporting date:
| | March 31
2026 | June 30
2025 |
| --- | --- | --- |
| | (Un-audited) | (Audited) |
| | No. of shares in Thousands | |
| Opening balance | 89,837 | 89,837 |
| Treasury shares of Rs. 10 each purchased at market value | (4,690) | (4,690) |
| Re-issue of treasury shares against stock options to employees | 1,444 | - |
| Closing balance | 86,591 | 85,147 |
10.2 NetSol Technologies Inc. 16000 Ventura Boulevard STE 770 ENCINO CA 91436, USA is the parent company, holding 68.59% (June 30, 2025: 69.76%) of issued capital of the Company. The percentage has been calculated after taking into account the impact of treasury shares.
10.3 The share capital includes 3.25 million ordinary shares (June 25: 4.69 million) held as treasury shares by the Company. These treasury shares are held in CDC blocked account in freezed form. These are not entitled to any voting right, cash dividend or any other distribution made by the Company. During the period, 1.44 million treasury shares are disposed off against employee stock options scheme.
10.4 There are 1.56 million (June 30, 2025: 3 million) outstanding options to subscribe for ordinary shares of the Company granted under the employee share option scheme. During the year, 1.44 million shares (June 30, 2025: Nil) were issued against options exercised by the eligible employees.
Note 11
Long Term Finances - secured
| | Note | March 31
2026 | June 30
2025 |
| --- | --- | --- | --- |
| | | (Un-audited) | (Audited) |
| | | --- Rupees in Thousands --- | |
| Loan obligation | 11.1 | 107,868 | 21,771 |
| Less: Current portion of long term financing | | (39,649) | (8,428) |
| | | 68,219 | 13,343 |
11.1 This represents finance facilities obtained from time to time, from First Habib Modaraba, for purchase of various vehicles. The facility is repayable in 36 equal monthly installments. This facility carries mark up rates ranging between 11.44% to 12.40% (June 30, 2025: 12.27% to 21.49%) per annum. These facilities are secured through lien marking in favour of financial institutions.
Note 12
Short Term Borrowings
| | March 31
2026
(Un-audited) | June 30
2025
(Audited) |
| --- | --- | --- |
| | --- Rupees in Thousands --- | |
| Askari Bank Limited - ERF - II | 500,000 | 500,000 |
| Samba Bank Limited - ERF - II | 380,000 | 380,000 |
| Habib Metropolitan Bank Limited - Istisna / Al Bai - Islamic Banking | 1,300,000 | 1,300,000 |
| | 2,180,000 | 2,180,000 |
12.1 All the terms and conditions are the same as those already disclosed in the annual financial statements for the year ended June 30, 2025 except as specifically disclosed here;
12.2 Export Refinance Facility Part II (ERF-II) is available from Bank of Punjab amounting Rs. 200 million (2025 : Nil), availed Rs. Nil. Running Finance facility / Finance Against Packing Credit (FAPC)/ Export Refinance Post Shipment Part I/II / EXIM Bank Part I/II /EXIM Bank EFS Part II/ SBP Rupee based Discounting/ FE 25 (Pre/Post shipment) facilities are also available as a sublimit of ERF. Mark up on ERF facility is charged at SBP rate + 0.5% and markup on running finance facility is charged at 3 months KIBOR + 1% per annum. These are secured by first joint pari passu charge on present and future assets, mortgage on property of the Company. The due balance is payable bi-annually.
Note 13
Contingencies and Commitments
13.1 Contingencies
There is no significant change in contingencies from the preceding annual published financial statements of the Company for the year ended June 30, 2025, except that provision for super tax has been recognized in these financial statements.
13.2 Commitments
(i) Bank guarantees have been issued amounting to Rs. 368.07 million (June 30, 2025: Rs. 264.44 million) against performance of various contracts, to Honourable Lahore High Court, to LESCO and to Standard Chartered Bank Pakistan (Limited) against its corporate credit cards.
(ii) The Company has a capital commitment of Rs. 88.86 million as at March 31, 2026 (June 30, 2025: Rs. 73.90 million).
Note 14
Revenue from Contracts with Customers - Net
| Nine Months Ended March 31, | Quarter Ended March 31, | |||
|---|---|---|---|---|
| 2026 | 2025 | 2026 | 2025 | |
| (Un-audited) | (Un-audited) | |||
| --- Rupees in Thousands --- | --- Rupees in Thousands --- | |||
| Disaggregation of revenue from contract with customers | ||||
| Set out below is the disaggregation of the Company's revenue from contracts with customers: | ||||
| Export Revenue | ||||
| - License | 1,272,546 | - | 1,272,546 | - |
| - Services | 2,338,333 | 2,478,696 | 545,137 | 1,037,093 |
| - Subscription and Support | 4,240,867 | 3,920,124 | 1,418,412 | 1,240,617 |
| 7,851,746 | 6,398,820 | 3,236,095 | 2,277,710 | |
| Local Revenue | ||||
| - Services | 35,650 | 24,068 | 12,803 | 10,848 |
| - Subscription and Support | - | 21,946 | - | - |
| Less: Sales tax | (4,918) | (3,750) | (1,766) | (1,496) |
| 30,732 | 42,264 | 11,037 | 9,352 | |
| 7,882,478 | 6,441,084 | 3,247,132 | 2,287,062 |
14.1 Revenue has been recognized over time for both local and export sales during the year.
Note 15
Other Income
15.1 Profit is earned under both conventional mark-up arrangement and Shariah compliant arrangement. It includes Rs. 140.92 million (March 31, 2025: 370.42 million) profit earned on Shariah compliant bank deposits & investments.
15.2 Income is earned under conventional advance arrangement with related party and Rs. 21.82 million (March 31, 2025: Rs. 7.07 million) interest is earned on it.
Note 16
Final Taxes / Levies
16.1 This represents portion of final tax paid under section 169 of the Income Tax Ordinance, 2001 representing levy in terms of requirements of IFRIC 21/IAS 37.
16.2 For exporters of IT and IT enabled services, export income is taxable under FTR at $0.25\%$ of the export remittances realized through normal banking channels. However, tax as per applicable rates is charged to the income of the Company generated from sources other than export income.
Notes to and forming part of these condensed interim financial statements (Un-audited)
Note 17
Earnings Per Share - Basic and Diluted
Note 18
Transactions with Related Parties
Related parties comprise the parent company, subsidiary companies, associated companies, staff retirement funds, directors and key management personnel. The Company in the normal course of business carries out transactions with various related parties. The Company enters into transactions with related parties on the basis of mutually agreed terms. Outstanding balances at the reporting date are unsecured. There have been no guarantees provided or received for any related party receivables or payables and vice versa.
Details of significant transactions with related parties other than those disclosed elsewhere in these condensed, interim, un-consolidated financial statements (un-audited) are as follows:
| Nine Months Ended March 31, | ||
|---|---|---|
| 2026 | 2025 | |
| (Un-audited) | ||
| --- Rupees in Thousands --- | ||
| Relationship with the Company | Nature of Transactions | |
| Subsidiary | Admin and IT services | 1,800 |
| Rental | 900 | |
| Mark-up income | 21,824 | |
| Associated undertaking | Rental charges | 675 |
| Provision of services | 3,093,525 | |
| Purchase of services | 99,849 | |
| Parent | Dividend | - |
| Commission | 83,977 | |
| Key management personnel | Salaries and benefits | 294,310 |
| Retirement benefits | 12,284 | |
| Commission paid | 23,876 | |
| Post employment benefit | Contribution to defined contribution plan | 172,205 |
Note 19
Capital Management
The primary objective of the Company's management is to ensure that it maintains a strong credit rating and healthy capital ratios while continue as going concern in order to support its business and maximize shareholders value.
There has been no change in the capital management policies during the period, consequently this condensed, interim, un-consolidated financial statements (un-audited) does not include all the information and disclosures as required in the annual financial statements.
Note 20
Financial Risk Management and Financial Instruments
(i) Financial Risk Factors
The Company's activities expose it to a variety of financial risks namely market risk (including currency risk, price risk and interest rate risk), credit risk and liquidity risk. There has been no change in the risk management policies during the period, consequently this condensed unconsolidated interim financial statements (un-audited) do not include all financial risk management information and disclosures required in the annual financial statements.
(ii) Fair Value of Financial Assets and Liabilities
The carrying values of all financial assets and liabilities reflected in this condensed, interim, un-consolidated financial statements (un-audited) approximate to their fair values.
Note 21
Shariah Screening Disclosures by Company Listed on Islamic Index
March 31 2026
June 30 2025
i) Shariah compliant bank deposits/bank balances
ii) Financing obtained as per Islamic mode
iii) Long term and Short term Shariah compliant investments
iv) Interest/markup accrued on any conventional loan or advance
1,708,994
1,407,868
400,000
9,743
2,166,070
1,321,771
-10,607
Nine Months Ended March 31,
2026 2025
(Un-audited)
--- Rupees in Thousands ---
v) Revenue earned from a Shariah compliant business segment
vi) Profit earned from Shariah compliant bank deposits/ bank balances
vii) Profit paid on Islamic mode of financing
viii) Interest earned on any conventional loan or advance
ix) Break-up of late payments or liquidated damages
x) Gain or loss or dividend earned on shariah compliant investments or share of profit from shariah-compliant associates
xi) Exchange gain earned from actual currency
xii) Exchange gain earned using conventional derivative financial instruments
xiii) Source and detailed breakup of other income, including breakup of other or miscellaneous portions of other income into Shariah-compliant and non compliant income:
i) Gain on sale of operating fixed assets
ii) Rental income
iii) Miscellaneous Income - Shariah Compliant
iv) Effect of discounting of long term contract assets
18,007
N/A
N/A
24,245
1,575
-
115
24,245
1,575
115
21.1 Relationship with Shariah compliant banks
- Name
Habib Metropolitan Bank Limited
First Habib Modaraba
Meezan Bank Limited
Dubai Islamic Bank Pakistan Limited
Al Baraka Bank Limited
Bank Alfalah Limited
Relationship
'Funded / Non-funded facility & Bank Balance
Funded facility
Bank Balance
Bank Balance
Bank Balance
Bank Balance
Note 22
Subsequent Events
There are no subsequent events to be disclosed.
Note 23
Date of Authorization for Issue
These condensed, interim, un-consolidated financial statements (un-audited) for the period ended March 31, 2026 were approved and authorised for issuance by the Board of Directors on April 30, 2026.
CHIEF EXECUTIVE OFFICE
Condensed Consolidated Financial Statements
For the Nine Months & Quarter Ended March 31, 2026
CONDENSED INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UN-AUDITED)
AS AT MARCH 31, 2026
| Note | March 31, 2026 | June 30, 2025 | |
|---|---|---|---|
| (Un-audited) | (Audited) | ||
| ASSETS | ---Rupees in Thousands--- | ||
| Non Current Assets | |||
| Property and equipment | 5 | 1,368,596 | 1,227,112 |
| Intangible assets | 6 | 290,448 | - |
| Long term contract assets | 746,834 | 143,058 | |
| Long term loans to employees | 7,180 | 8,590 | |
| 2,413,058 | 1,378,760 | ||
| Current Assets | |||
| Trade debts | 7 | 8,781,325 | 5,869,134 |
| Contract assets | 3,331,588 | 2,542,057 | |
| Loans and advances | 8 | 122,049 | 42,111 |
| Deposits and short term prepayments | 145,816 | 229,351 | |
| Other receivables | 122,044 | 127,131 | |
| Due from related parties | 9 | 164,071 | 187,791 |
| Prepaid tax asset | - | 19,668 | |
| Short term investments | 600,000 | 200,000 | |
| Cash and bank balances | 2,657,495 | 3,767,897 | |
| 15,924,388 | 12,985,140 | ||
| Total Assets | 18,337,446 | 14,363,900 | |
| EQUITY AND LIABILITIES | |||
| Share Capital and Reserves | |||
| Authorized share capital | |||
| 200,000 (June 30, 2025: 200,000) ordinary shares of Rs. 10 each | 2,000,000 | 2,000,000 | |
| Issued, subscribed and paid up capital | 10 | 898,369 | 898,369 |
| Reserves | 11,687,775 | 9,922,818 | |
| Share deposit money | 537 | 3,868 | |
| Shareholders' Equity | 12,586,681 | 10,825,055 | |
| Non Current Liabilities | |||
| Long term financing | 11 | 68,219 | 13,343 |
| Long term advances | 15,164 | 5,415 | |
| 83,383 | 18,758 | ||
| Current Liabilities | |||
| Trade and other payables | 1,080,924 | 1,173,792 | |
| Contract liabilities | 2,290,717 | 153,329 | |
| Short term borrowings | 12 | 2,180,000 | 2,180,000 |
| Provision for taxation-net | 52,390 | - | |
| Current portion of long term financing | 58,906 | 8,428 | |
| Unclaimed dividend | 4,445 | 4,538 | |
| 5,667,382 | 3,520,087 | ||
| Contingencies and commitments | 13 | - | - |
| Total Equity and Liabilities | 18,337,446 | 14,363,900 |
The annexed notes 1 to 25 form an integral part of these condensed interim consolidated financial statements (un-audited).
U
CONDENSED INTERIM CONSOLIDATED STATEMENT OF PROFIT OR LOSS (UN-AUDITED)
FOR THE NINE MONTHS & QUARTER ENDED MARCH 31, 2026
| Note | Nine Months ended March 31, | Quarter ended March 31, | |||
|---|---|---|---|---|---|
| 2026 | 2025 | 2026 | 2025 | ||
| (Un-audited) | (Un-audited) | ||||
| Revenue from contracts with customers - net | 14 | 9,339,329 | 6,609,011 | 3,571,823 | 2,399,985 |
| Cost of revenue | (4,698,789) | (4,156,323) | (1,481,061) | (1,480,947) | |
| Gross Profit | 4,640,540 | 2,452,688 | 2,090,762 | 919,038 | |
| Selling and promotional expenses | (1,087,697) | (655,843) | (470,223) | (225,505) | |
| Administrative expenses | (1,437,921) | (1,120,100) | (500,945) | (359,910) | |
| (2,525,618) | (1,775,943) | (971,168) | (585,415) | ||
| Operating Profit | 2,114,922 | 676,745 | 1,119,594 | 333,623 | |
| Other operating expenses | (277,795) | (458,483) | (72,373) | (204,320) | |
| Finance cost | (135,204) | (181,380) | (40,441) | (51,414) | |
| Other income | 15 | 213,684 | 429,277 | 67,516 | 175,530 |
| (199,315) | (210,586) | (45,298) | (80,204) | ||
| Profit before Final Taxes and Income Tax | 1,915,607 | 466,159 | 1,074,296 | 253,419 | |
| Final tax / levies | 16 | (246,895) | (187,297) | (123,863) | (38,693) |
| Profit before Income Tax | 1,668,712 | 278,862 | 950,433 | 214,726 | |
| Income tax | - | - | - | - | |
| Net Profit for the Period | 1,668,712 | 278,862 | 950,433 | 214,726 | |
| Earnings Per Share - Basic and Diluted | 17 | ||||
| - Basic | 19.36 | 3.20 | 10.98 | 2.50 | |
| - Diluted | 19.18 | 3.15 | 10.91 | 2.46 |
The annexed notes 1 to 25 form an integral part of these condensed interim consolidated financial statements (un-audited).
L
CONDENSED INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)
| Nine Months ended March 31, | Quarter ended March 31, | |||
|---|---|---|---|---|
| 2026 | ||||
| (Un-audited) | 2025 | 2026 | ||
| (Un-audited) | 2025 | |||
| --- Rupees in Thousands --- | --- Rupees in Thousands --- | |||
| Net Profit for the Period | 1,668,712 | 278,862 | 950,433 | 214,726 |
| Other Comprehensive Income for the period | ||||
| Items that may be re-classified subsequently to profit or loss | - | - | - | - |
| - Exchange differences on translation of foreign operation | (16,146) | 344 | (5,206) | 355 |
| Items that will not be re-classified subsequently to profit or loss | - | - | - | - |
| (16,146) | 344 | (5,206) | 355 | |
| Total Comprehensive Income for the Period | 1,652,566 | 279,206 | 945,227 | 215,081 |
CONDENSED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)
FOR THE NINE MONTHS ENDED MARCH 31, 2026
| Particulars | Share Capital | Reserves | Total Reserves | Share Deposit Money | Total Equity | ||||
|---|---|---|---|---|---|---|---|---|---|
| Capital Reserve | Revenue Reserve | ||||||||
| Share Premium | Employee Share Option Compensation Reserve | Treasury Share Reserve | Foreign Currency Translation Reserve | Unappropriated Profit | |||||
| Balance as at June 30, 2024 | 898,369 | 304,167 | 265,445 | (184,739) | 544 | 8,822,648 | 9,208,065 | 13 | 10,106,447 |
| Net profit for the period | - | - | - | - | - | 278,862 | 278,862 | - | 278,862 |
| Other comprehensive income for the period | - | - | - | - | 344 | - | 344 | - | 344 |
| Total comprehensive income for the period | - | - | - | - | 344 | 278,862 | 279,206 | - | 279,206 |
| Transactions with owners of the equity | |||||||||
| Dividend paid | - | - | - | - | - | (263,511) | (263,511) | (263,511) | |
| Acquisition of treasury shares | - | - | - | (419,988) | (419,988) | (419,988) | |||
| Employee share option reserve | - | - | 4,349 | - | - | - | 4,349 | - | 4,349 |
| Share deposit money received - net | - | - | - | - | - | - | - | (13) | (13) |
| Balance as at March 31, 2025 | 898,369 | 304,167 | 269,794 | (604,727) | 888 | 8,837,999 | 8,808,121 | - | 9,706,490 |
| Balance as at June 30, 2025 | 898,369 | 304,167 | 269,795 | (604,727) | 9,181 | 9,944,402 | 9,922,818 | 3,868 | 10,825,055 |
| Net profit for the period | - | - | - | - | - | 1,668,712 | 1,668,712 | - | 1,668,712 |
| Other comprehensive income for the period | - | - | - | - | (16,146) | - | (16,146) | - | (16,146) |
| Total comprehensive income for the period | - | - | - | - | (16,146) | 1,668,712 | 1,652,566 | - | 1,652,566 |
| Transactions with owners of the equity | |||||||||
| Re-issue of treasury shares against stock options to employees | - | 418 | (21,398) | 133,371 | - | - | 112,391 | (112,391) | - |
| Share deposit money received - net | - | - | - | - | - | - | - | 109,060 | 109,060 |
| Balance as at March 31, 2026 | 898,369 | 304,585 | 248,397 | (471,356) | (6,965) | 11,613,114 | 11,687,775 | 537 | 12,586,681 |
H
CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
| Mar 31, 2026 | Mar 31, 2025 | |
|---|---|---|
| (Un-audited) | (Un-audited) | |
| ---Rupees in Thousands--- | ||
| Profit before final taxes and income tax | 1,915,607 | 466,159 |
| Adjustments for: | ||
| Depreciation - own assets | 193,044 | 234,417 |
| Depreciation of right of use assets | 7,354 | 607 |
| Gain on disposal of property and equipment | (24,245) | (980) |
| Foreign exchange loss - net | 64,583 | 9,989 |
| Finance cost | 130,048 | 177,310 |
| Interest income | (183,656) | (427,507) |
| Effect of discounting of long term contract assets | (5,108) | - |
| Employee share option compensation expense | - | 4,349 |
| Provision for expected credit losses | 36,212 | 178,547 |
| 218,232 | 176,732 | |
| Operating profit before working capital changes | 2,133,839 | 642,891 |
| Decrease / (Increase) in current assets | ||
| Trade debts | (2,890,329) | 682,932 |
| Contract assets | (1,488,804) | (816,835) |
| Loans and advances | (78,528) | 50,012 |
| Deposits and short term prepayments | 83,535 | (105,850) |
| Other receivables | 18,792 | (63,316) |
| Due from related parties | 23,720 | 203,562 |
| (Decrease) / Increase in current liabilities | ||
| Trade and other payables | (104,051) | 194,627 |
| Contract liabilities | 2,137,672 | (1,245,825) |
| Cash Used in Operations | (2,297,993) | (1,100,693) |
| Levy / final tax paid | (177,377) | (212,449) |
| Dividend paid | (93) | (262,782) |
| (177,470) | (475,231) | |
| Net cash used in Operating Activities | (341,624) | (933,033) |
| CASH FLOWS FROM INVESTING ACTIVITIES | ||
| Payment for acquisition of property and equipment | (363,005) | (177,550) |
| Proceeds from disposal of property and equipment | 26,041 | 1,005 |
| Expenditure on internally generated intangibles | (290,448) | - |
| Short term investments | (400,000) | (200,000) |
| Advance against capital expenditure | 19,333 | (64,545) |
| Interest received | 169,951 | 427,507 |
| Net Cash used in Investing Activities | (838,128) | (13,583) |
| CASH FLOWS FROM FINANCING ACTIVITIES | ||
| Acquisition of treasury shares | - | (419,988) |
| Share deposit money | 109,060 | (13) |
| Repayment of lease liabilities | (19,478) | (1,017) |
| Received against lease liabilities | 38,735 | - |
| Long term financing obtained | 106,608 | (11,791) |
| Repayment of long term financing | (27,366) | - |
| Short term borrowing - net | (133,798) | 443,742 |
| Long term advances - net | 9,749 | 2,565 |
| Net Cash generated from Financing Activities | 83,510 | 13,498 |
| Net decrease in Cash and Cash Equivalents | (1,096,242) | (933,118) |
| Net foreign exchange difference | (14,160) | 342 |
| Cash and cash equivalents at the beginning of the period | 3,767,897 | 4,669,162 |
| Cash and Cash Equivalents at the End of the Period | 2,657,495 | 3,736,386 |
H
NOTES TO AND FORMING PART OF
THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UN-AUDITED)
FOR THE NINE MONTHS ENDED MARCH 31, 2026
Note 1
The Company and its Operations
NetSol Group ("the Group") consists of:
- NetSol Technologies Limited
- NetSol Innovation (Private) Limited
- NetSol Ascent Middle East Computer Equipment Trading L.L.C.
- NetSol Institute of Artificial Intelligence (Private) Limited
NetSol Technologies Limited ("the Holding Company"), incorporated in Pakistan on August 22, 1996 under the repealed Companies Ordinance, 1984, (Now The Companies Act, 2017) as a Private company limited by shares, was later on converted into Public Limited Company and subsequently listed on Pakistan Stock Exchange on August 26, 2005. The Company is domiciled in Pakistan and is principally engaged in the development and sale of computer software and allied services in Pakistan as well as abroad.
Geographical locations and addresses of its business units are as follows:
| Address / Location | Purpose |
|---|---|
| NetSol IT Village, (Software Technology Park) Lahore Ring Road, Ghazi Road | |
| Lahore Cantt., Pakistan. | Registered office and Business unit |
| 43/1/Q, Amna Villa 1, Block-6, PECHS Karachi, Pakistan. | Branch office |
| House No. 4, Safari Villas 1, Bahria Town, Rawalpindi, Pakistan. | Branch office |
| Office # 6, 4th Floor Clover Bay, Unit 407-412 Business Bay Dubai. UAE. | Subsidiary office |
NetSol IT Village, (Software Technology Park) also includes House No. 4, House No. 5, House No. 6, House No. E - 20, Cricketers Colony, NetSol IT Village (Software Technology Park), Lahore Ring Road, Ghazi Road Interchange, Lahore Cantt.
NetSol Ascent Middle East Computer Equipment Trading L.L.C. is incorporated in Dubai Emirate as a limited liability company. NetSol Technologies Limited owns 100% of its shareholding. The subsidiary is engaged in the business of development and sale of computer systems and communication equipment and software.
NetSol Innovation (Private) Limited ("the subsidiary Company" or "Subsidiary") is incorporated in Pakistan as a private limited company and is a wholly owned 99.999% (2025: 99.999%) subsidiary of NetSol Technologies Limited. The subsidiary is engaged in the business of providing software development and allied IT services. Registered office of the subsidiary is situated at NetSol IT Village, Lahore Ring Road. Ghazi Road interchange. Lahore Cantt. Pakistan.
NetSol Institute of Artificial Intelligence (Private) Limited is incorporated in Pakistan as a private limited company and is a wholly owned 100% (2025: 100%) subsidiary of NetSol Innovation (Private) Limited. The subsidiary is principally engaged in the developing of globally competitive digital workforce by providing specialized education and certifications in high-demand technology areas and to run data processing centers, computer centers, software development centers, offices and to provide consultancy and data processing software development services and to impart training of electronic data processing, computer software and hardware to customers and others and to buy, sell, export, import of software, hardware and establishment of incidental infrastructural facilities.
The Company is also using the branch office of its parent company, situated at Sentral Senayan 2 Building, 16th Floor, Asia Afrika Street No. 8, Senayan, Kebayoran Baru, South Jakarta, DKI Jakarta, 10270, Indonesia.
The Company is a majority owned subsidiary of NetSol Technologies Inc. USA.
Note 2
Basis of Preparation
2.1 Statement of compliance
These condensed interim consolidated financial statements (un-audited) have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of:
- International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017; and
- Provisions of and directives issued under the Companies Act, 2017.
Where the provisions of and directives issued under the Companies Act, 2017 differ with the requirements of IAS 34, the provisions of and directives issued under the Companies Act, 2017 have been followed.
These condensed, interim, consolidated financial statements are un-audited and do not include all the disclosures and information required in the annual financial statements and should be read in conjunction with the preceding annual published financial statements of the company for the year ended June 30, 2025.
2.2 Basis of measurement
These condensed, interim, consolidated financial statements (un-audited) have been prepared under the historical cost convention using accrual basis of accounting.
2.3 Functional and presentation currency
These condensed, interim, consolidated financial statements (un-audited) are presented in Pakistani Rupee, which is the Company's functional currency as well its presentation currency.
Note 3
Material Accounting Policy Information
The accounting policies adopted for the preparation of these condensed, interim, consolidated financial statements (un-audited) are consistent with those applied in the preparation of the preceding annual published financial statements of the Company for the year ended June 30, 2025.
Notes to and forming part of the Condensed Interim consolidated Financial Statements (Un-audited)
Note 4
Use of Estimates and Judgements
The preparation of condensed, interim, consolidated financial statements (un-audited) in conformity with approved accounting standards, as applicable in Pakistan, requires the management to make judgments, estimates and assumptions that affect the application of policies and the reported amounts of assets, liabilities, income and expenses.
The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods.
In preparing these condensed, interim, consolidated financial statements (un-audited), the judgments, estimates and assumptions made by the management were the same as those that were applied to the preceding annual published financial statements of the Company for the year ended June 30, 2025.
Note 5
| Property and Equipment | March 31, 2026 | June 30, 2025 | |
|---|---|---|---|
| Note | (Un-audited) | (Audited) | |
| ---Rupees in Thousands--- | |||
| Operating fixed assets | 5.1 | 1,303,016 | 1,173,580 |
| Right of use assets | 5.2 | 31,381 | - |
| Advance against capital expenditure | 34,199 | 53,532 | |
| 1,368,596 | 1,227,112 | ||
| 5.1 Operating fixed assets | |||
| Opening written down value | 1,173,580 | 1,213,944 | |
| Additions during the period / year | 5.1.1 | 324,270 | 279,610 |
| Disposals during the period / year | (1,796) | (3,266) | |
| 1,496,054 | 1,490,288 | ||
| Depreciation charge for the period / year | (193,038) | (316,708) | |
| 1,303,016 | 1,173,580 |
5.1.1 Following is the detail of additions / transfers during the period:
At cost
| Furniture and fixtures | 7,276 | 4,223 |
|---|---|---|
| Vehicles | 171,895 | 24,794 |
| Office equipment | 8,346 | 15,514 |
| Computer equipment and installations | 54,461 | 126,112 |
| Other equipment & Installations | 48,132 | - |
| Air conditioners | 1,111 | 3,848 |
| Electric fittings | 32,769 | - |
| Generators | 280 | - |
| Computer softwares | - | 105,119 |
| 324,270 | 279,610 |
Notes to and forming part of the Condensed Interim consolidated Financial Statements (Un-audited)
Note 5, Property and Equipment - Continued...
| March 31, 2026 | June 30, 2025 | |
|---|---|---|
| (Un-audited) | (Audited) | |
| ---Rupees in Thousands--- | ||
| 5.2 Right of use assets | ||
| Opening written down value | - | 4,104 |
| Additions during the period / year | 38,735 | - |
| Disposals during the period / year | - | (3,497) |
| 38,735 | 607 | |
| Depreciation charge for the period / year | (7,354) | (607) |
| 31,381 | - |
Note 6
Intangible Assets
| 2026 | 2025 | |
|---|---|---|
| (Un-audited) | (Audited) | |
| ---Rupees in Thousands--- | ||
| Intangibles - Under Development | ||
| Cost | 6.2 | 290,448 |
| Accumulated amortization | - | - |
| Net book value | 290,448 | - |
6.1 NetSol Financial Suite and NFS - Ascent have been fully amortized; however, the Company is still generating revenues from the sale of its licenses, provision of allied services and maintenance.
6.2 The Company is undertaking major system upgrades and modernization of existing legacy solutions, comprising multiple integrated modules and enhanced technology architecture aligned with current industry practices. These developments will add new functionalities, improved scalability and overall system performance. Development costs meeting recognition criteria are capitalized as intangible assets, while other costs are expensed as incurred.
Note 7
Trade Debts
| March 31, 2026 | June 30, 2025 | |
|---|---|---|
| (Un-audited) | (Audited) | |
| --- Rupees in Thousands --- | ||
| Related Parties | ||
| Considered good - unsecured | 5,610,573 | 5,036,394 |
| Considered doubtful - unsecured | 140,025 | 225,827 |
| 5,750,598 | 5,262,221 | |
| Other Parties | ||
| Considered good - unsecured | 3,170,752 | 832,740 |
| Considered doubtful - unsecured | 16,092 | 102,054 |
| 3,186,844 | 934,794 | |
| Less: Provision for expected credit losses | (156,117) | (327,881) |
| 8,781,325 | 5,869,134 |
Note 7, Trade Debts - Continued...
| March 31, 2026 | June 30, 2025 | |
|---|---|---|
| (Un-audited) | (Audited) | |
| --- Rupees in Thousands --- | ||
| 7.1 Amount receivable from related parties included in trade debts (from exports) are as under: | ||
| NetSol Technologies (Thailand) Limited | 115,373 | - |
| NetSol Technologies (Beijing) Co., Ltd. | 3,662,542 | 3,013,655 |
| NetSol Technologies Australia Pty Limited | 321,555 | 425,819 |
| NetSol Technologies Americas Inc. | 754,789 | 796,046 |
| NetSol Technologies Europe Limited | 149,622 | 33,803 |
| Ascent Europe Limited | 746,717 | 992,898 |
| 5,750,598 | 5,262,221 | |
| Note 8 | ||
| Loans and Advances | March 31, 2026 | June 30, 2025 |
| (Un-audited) | (Audited) | |
| --- Rupees in Thousands --- | ||
| Considered good - unsecured | ||
| Current portion of loans to executives | 68,866 | 15,287 |
| Advances to employees: | ||
| - against salaries | 816 | 1,439 |
| - against expenses | 8.1 | 25,385 |
| 122,049 | 42,111 |
8.1 These advances are given to meet business expenses and are settled as and when the expenses are incurred.
| Note 9 | |||
|---|---|---|---|
| Due from Related Party | March 31, 2026 | June 30, 2025 | |
| Note | (Un-audited) | (Audited) | |
| --- Rupees in Thousands --- | |||
| Considered good - unsecured | |||
| Associates | 9.1 | ||
| NetSol Technologies Americas Inc. | - | 54,595 | |
| NetSol Technologies Europe | - | - | |
| NetSol Connect (Private) Limited | 13,475 | 17,455 | |
| NetSol Technologies (Thailand) Limited | 631 | - | |
| NetSol Technologies (Beijing) Co., Ltd. | 112,405 | 115,741 | |
| NetSol Technologies Australia Pty. Limited | 37,560 | - | |
| 164,071 | 187,791 |
9.1 These relate to the normal course of business of the Company and are interest free.
9.2 Balances with related parties are maintained on a running account basis; therefore, age analysis of amounts due from related parties is not practically possible.
Note 10
Issued, Subscribed and Paid up Capital
| March 31, 2026 | June 30, 2025 | March 31, 2026 | June 30, 2025 | |
|---|---|---|---|---|
| (Un-audited) | (Audited) | (Un-audited) | (Audited) | |
| No. of shares in Thousands | --- Rupees in Thousands --- | |||
| 42,686 | 42,686 | Ordinary shares of Rs. 10 each fully paid in cash | 426,862 | 426,862 |
| 47,151 | 47,151 | Ordinary shares of Rs. 10 each allotted as fully paid bonus shares | 471,507 | 471,507 |
| 89,837 | 89,837 | 898,369 | 898,369 |
10.1 Number of shares outstanding as at the reporting date:
| March 31, 2026 | June 30, 2025 | |
|---|---|---|
| (Un-audited) | (Audited) | |
| No. of shares in Thousands | ||
| Opening balance | 89,837 | 89,837 |
| Treasury shares of Rs. 10 each purchased at market value | (4,690) | (4,690) |
| Re-issue of treasury shares against stock options to employees | 1,444 | |
| Closing balance | 86,591 | 85,147 |
10.2 NetSol Technologies Inc. 16000 Ventura Boulevard STE 770 ENCINO CA 91436, USA is the parent company, holding 68.59% (June 30, 2025: 69.76%) of issued capital of the Company. The percentage has been calculated after taking into account the impact of treasury shares.
10.3 The share capital includes 3.25 million ordinary shares (June 25: 4.69 million) held as treasury shares by the Company. These treasury shares are held in CDC blocked account in freezed form. These are not entitled to any voting right, cash dividend or any other distribution made by the Company. During the period, 1.44 million treasury shares are disposed off against employee stock options scheme.
10.4 There are 1.56 million (June 30, 2025: 3 million) outstanding options to subscribe for ordinary shares of the Company granted under the employee share option scheme. During the year, 1.44 million shares (June 30, 2025: Nil) were issued against options exercised by the eligible employees.
Note 11
Long Term Finances - secured
| Note | March 31, 2026 | June 30, 2025 | |
|---|---|---|---|
| (Un-audited) | (Audited) | ||
| --- Rupees in Thousands --- | |||
| Loan obligation | 11.1 | 107,868 | 21,771 |
| Less: Current portion of long term financing | (39,649) | (8,428) | |
| 68,219 | 13,343 |
11.1 This represents finance facilities obtained from time to time, from First Habib Modaraba, for purchase of various vehicles. The facility is repayable in 36 equal monthly installments. This facility carries mark up rates ranging between 11.44% to 12.40% (June 30, 2025: 12.27% to 21.49%) per annum. These facilities are secured through lien marking in favour of financial institutions.
Note 12
Short Term Borrowings
12.1 All the terms and conditions are the same as those already disclosed in the annual financial statements for the year ended June 30, 2025.
12.2 Export Refinance Facility Part II (ERF-II) is available from Bank of Punjab amounting Rs. 200 million (2025 : Nil), availed Rs. Nil. Running Finance facility / Finance Against Packing Credit (FAPC)/ Export Refinance Post Shipment Part I/II / EXIM Bank Part I/II /EXIM Bank EFS Part II/ SBP Rupee based Discounting/ FE 25 (Pre/Post shipment) facilities are also available as a sublimit of ERF. Mark up on ERF facility is charged at SBP rate + 0.5% and markup on running finance facility is charged at 3 months KIBOR + 1% per annum. These are secured by first joint pari passu charge on present and future assets, mortgage on property of the Company. The due balance is payable bi-annually.
Note 13
Contingencies and Commitments
13.1 Contingencies
There is no significant change in contingencies from the preceding annual published financial statements of the Company for the year ended June 30, 2025, except that provision for super tax has been recognized in these financial statements.
13.2 Commitments
(i) Bank guarantees have been issued amounting to Rs. 368.07 million (June 30, 2025: Rs. 264.44 million) against performance of various contracts, to Honourable Lahore High Court, to LESCO and to Standard Chartered Bank Pakistan (Limited) against its corporate credit cards.
(ii) The Company has a capital commitment of Rs. 88.86 million as at March 31, 2026 (June 30, 2025: Rs. 73.90 million).
Note 14
Revenue from Contracts with Customers - Net
| Nine Months ended March 31, | Quarter ended March 31, | |||
|---|---|---|---|---|
| 2026 | 2025 | 2026 | 2025 | |
| (Un-audited) | (Un-audited) | |||
| --- Rupees in Thousands --- | --- Rupees in Thousands --- | |||
| Disaggregation of revenue from contract with customers | ||||
| Set out below is the disaggregation of the Company's revenue from contracts with customers: | ||||
| Export Revenue | ||||
| - License | 1,272,546 | - | 1,272,546 | - |
| - Services | 3,939,932 | 2,646,623 | 771,684 | 1,150,016 |
| - Subscription and Support | 4,088,975 | 3,920,124 | 1,509,412 | 1,240,617 |
| 9,301,453 | 6,566,747 | 3,553,642 | 2,390,633 | |
| Local Revenue | ||||
| - Services | 43,151 | 24,068 | 20,304 | 10,848 |
| - Subscription and Support | - | 21,946 | - | - |
| Less: Sales tax | (5,275) | (3,750) | (2,123) | (1,496) |
| 37,876 | 42,264 | 18,181 | 9,352 | |
| 9,339,329 | 6,609,011 | 3,571,823 | 2,399,985 |
14.1 Revenue has been recognized over time for both local and export sales during the year.
Note 15
Other Income
| Nine Months ended March 31, | Quarter ended March 31, | |||
|---|---|---|---|---|
| 2026 | 2025 | 2026 | 2025 | |
| (Un-audited) | (Un-audited) | |||
| --- Rupees in Thousands --- | --- Rupees in Thousands --- | |||
| Income from financial assets | ||||
| Profit on bank deposits | 125,371 | 91,815 | 55,527 | 17,491 |
| Profit on short term investments | 58,285 | 335,692 | 17 | 59,436 |
| 183,656 | 427,507 | 55,544 | 76,927 | |
| Income from non-financial assets | ||||
| Gain on foreign currency translation | - | - | 7,775 | 97,359 |
| Gain on disposal of property and equipment | 24,245 | 980 | 2,276 | 904 |
| Rental income | 675 | 675 | 225 | 225 |
| - | 115 | - | 115 | |
| Effect of discounting of long term contract assets | 5,108 | - | 1,696 | - |
| 30,028 | 1,770 | 11,972 | 98,603 | |
| 213,684 | 429,277 | 67,516 | 175,530 |
15.1 Profit is earned under both conventional mark-up arrangement and Shariah compliant arrangement. It includes Rs. 141.02 million profit earned on Shariah compliant bank deposits & investments.
Note 16
Final Taxes / Levies
For exporters of IT and IT enabled services, export income is taxable under FTR at 0.25% of the export remittances realized through normal banking channels. However, tax as per applicable rates is charged to the income of the Company generated from sources other than export income.
Note 17
Earnings Per Share - Basic and Diluted
Note 18
Transactions with Related Parties
Related parties comprise the parent company, subsidiary companies, associated companies, staff retirement funds, directors and key management personnel. The Company in the normal course of business carries out transactions with various related parties. The Company enters into transactions with related parties on the basis of mutually agreed terms. Outstanding balances at the reporting date are unsecured. There have been no guarantees provided or received for any related party receivables or payables and vice versa.
Details of significant transactions with related parties other than those disclosed elsewhere in these condensed, interim, consolidated financial statements (un-audited) are as follows:
| Nine Months ended March 31, | |||
|---|---|---|---|
| 2026 | 2025 | ||
| (Un-audited) | |||
| ---Rupees in Thousands--- | |||
| Relationship with the Company | Nature of Transactions | ||
| Associated undertaking | Rental charges | 675 | 675 |
| Provision of services | 3,167,959 | 2,831,698 | |
| Purchase of services | 99,849 | 34,963 | |
| Parent | Dividend | - | 178,190 |
| Commission | 83,977 | - | |
| Key management personnel | Salaries and benefits | 305,053 | 275,262 |
| Retirement benefits | 12,827 | 11,483 | |
| Commission paid | 23,876 | 11,151 | |
| Post employment benefit | Contribution to defined contribution plan | 178,458 | 151,480 |
Note 19
Capital Management
The primary objective of the Company's management is to ensure that it maintains a strong credit rating and healthy capital ratios while continue as going concern in order to support its business and maximize shareholders value.
There has been no change in the capital management policies during the period, consequently this condensed, interim, consolidated financial statements (un-audited) does not include all the information and disclosures as required in the annual financial statements.
Note 20
Financial Risk Management and Financial Instruments
(i) Financial Risk Factors
The Company's activities expose it to a variety of financial risks namely market risk (including currency risk, price risk and interest rate risk), credit risk and liquidity risk. There has been no change in the risk management policies during the period, consequently this condensed consolidated interim financial statements (un-audited) do not include all financial risk management information and disclosures required in the annual financial statements.
(ii) Fair Value of Financial Assets and Liabilities
The carrying values of all financial assets and liabilities reflected in this condensed, interim, consolidated financial statements (un-audited) approximate to their fair values.
Note 21
| Shariah Screening Disclosures by Company Listed on Islamic Index | Note | March 31, 2026 | June 30, 2025 | |
|---|---|---|---|---|
| (Un-audited) ---Rupees in Thousands--- | (Audited) | |||
| i) | Financing obtained as per Islamic mode | Note 12 | 1,407,868 | 1,321,771 |
| ii) | Shariah compliant bank deposits/bank balances | 2,375,840 | 2,166,070 | |
| iii) | Long term and Short term Shariah compliant investments | 400,000 | - | |
| iv) | Interest/markup accrued on any conventional loan or advance | 9,743 | 10,607 |
Nine Months ended March 31, 2026 2025
(Un-audited)
--- Rupees in Thousands ---
v) Revenue earned from a Shariah compliant business segment Note 14 9,339,329 6,609,011
vi) Profit earned from Shariah compliant bank deposits/ bank balances Note 15 82,750 39,850
vii) Profit paid on Islamic mode of financing
viii) Interest earned on any conventional loan or advance N/A N/A
ix) Break-up of late payments or liquidated damages N/A N/A
x) Gain or loss or dividend earned on shariah compliant investments or share of profit from shariah-compliant associates 58,270 330,600
xi) Exchange gain earned from actual currency 25,874 78,195
xii) Exchange gain earned using conventional derivative financial instruments N/A N/A
xiii) Source and detailed breakup of other income, including breakup of other or miscellaneous portions of other income into Shariah-compliant and non compliant income:
i) Gain on sale of operating fixed assets 24,245 980
ii) Rental income 675 675
iii) Miscellaneous Income - Shariah Compliant - 115
iv) Effect of discounting of long term contract assets 5,108 -
21.1 Relationship with Shariah compliant banks
Name
Habib Metropolitan Bank Limited
First Habib Modaraba
Meezan Bank Limited
Dubai Islamic Bank Pakistan Limited
Al Baraka Bank Limited
Bank Alfalah Limited
Relationship
'Funded / Non-funded facility & Bank Balance
Funded facility
Bank Balance
Bank Balance
Note 22
Segment Revenues and Results
Following is an analysis of the Group's revenue and results by reportable segment.
| Mar-26 | |||
|---|---|---|---|
| PBS | PS | BPO | Total |
| ---Rupees in Thousands--- | |||
| 1,272,546 | - | - | 1,272,546 |
| 3,387,055 | 129,871 | 59,164 | 3,576,090 |
| 4,490,693 | - | - | 4,490,693 |
| 9,150,294 | 129,871 | 59,164 | 9,339,329 |
| (4,459,588) | (194,333) | (44,868) | (4,698,789) |
| 4,690,706 | (64,462) | 14,296 | 4,640,540 |
Unallocated corporate expenses:
Selling and promotional expenses
(1,087,697)
Administrative expenses
(1,437,921)
Other income
213,684
Other operating expenses
(277,795)
Finance cost
(135,204)
Final tax / levies
(246,895)
Profit after taxation
1,668,712
| Mar-25 | |||
|---|---|---|---|
| PBS | PS | BPO | Total |
| ---Rupees in Thousands--- | |||
| 2,489,593 | 117,700 | 60,079 | 2,667,372 |
| 3,941,639 | - | - | 3,941,639 |
| 6,431,232 | 117,700 | 60,079 | 6,609,011 |
| (3,947,408) | (159,601) | (49,314) | (4,156,323) |
| 2,483,824 | (41,901) | 10,765 | 2,452,688 |
Unallocated corporate expenses:
Selling and promotional expenses
(655,843)
Administrative expenses
(1,120,100)
Other income
429,277
Other operating expenses
(458,483)
Finance cost
(181,380)
Final tax / levies
(187,297)
Profit after taxation
278,862
*Key
PBS = Product Based Solutions and Ancillary Services
BPO = Business Process Outsourcing
PS = Professional Services
Segment assets and liabilities are not regularly provided to the CODM. The Group has elected as provided under IFRS 8 'Operating Segments' (amended) not to disclose a measure of segment assets or liabilities where these amounts are not regularly provided to the CODM.
Note 23
Subsequent Events
There are no subsequent events to be disclosed.
Note 24
Date of Authorization for Issue
These condensed, interim, consolidated financial statements (un-audited) for the period ended March 31, 2026 were approved and authorised for issuance by the Board of Directors on April 30, 2026.
Note 25
Figures
Figures have been rounded off to the nearest thousand of rupees unless otherwise stated.
NETSOL IT Village (Software Technology Park)
Lahore Ring Road, Ghazi Road Interchange
Lahore Cantt. 54792, Pakistan
www.netsolpk.com
[email protected]