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NetSol Technologies Limited — Interim / Quarterly Report 2026
Feb 25, 2026
72248_rns_2026-02-25_60c469ef-3bdc-4fa2-bb7e-757fef1b2aa3.pdf
Interim / Quarterly Report
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NETSOL Technologies Limited
For The Half Year & Quarter Ended December 31, 2025
For The Half Year & Quarter Ended December 31, 2025 i
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NETSOL Technologies Limited
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ii For The Quarter Ended September 30, 2025
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Table of Contents
Business Review
| Business Review | |
|---|---|
| Company Profle | 02 |
| Directors’ Review Report | 04 |
| Directors’ Review Report Urdu | 07 |
| Auditor Review Report | 10 |
Condensed Interim
Un-Consolidated Financial Statements
| Directors’ Review Report Urdu Auditor Review Report CondensedInterim Un-Consolidated Financial Statements |
07 10 |
|---|---|
| Statement of Financial Position | 12 |
| Statement of Proft or Loss | 13 |
| Statement of Comprehensive | 14 |
| Income | |
| Statement of Changes in Equity | 15 |
| Statement of Cash Flows | 16 |
| Notes to the Financial Statements | 17 |
Condensed Interim Consolidated Financial Statements
| Statement of Cash Flows Notes to the Financial Statements CondensedInterim Consolidated Financial Statements |
16 17 |
|---|---|
| Statement of Financial Position | 28 |
| Statement of Proft or Loss | 29 |
| Statement of Comprehensive | 30 |
| Income | |
| Statement of Changes in Equity | 31 |
| Statement of Cash Flows | 32 |
| Notes to the Financial Statements | 33 |
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NETSOL Technologies Limited
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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 GHAUR I Non-Executive Director
NOMAN HUSSAIN Independent Director
HUMA FAKHAR Independent Director
2 For The Half Year & Quarter Ended December 31, 2025
NETSOL Technologies Limited
AUDIT COMMITTEE
NOMAN HUSSAIN Chairman
VASEEM ANWAR Member
HUMA FAKHAR Member
CHIEF FINANCIAL OFFICER BOO-ALI SIDDIQUI
COMPANY SECRETARY SEHRISH
CHIEF INTERNAL AUDITOR MUHAMMAD ABDUL WAHAB HAFEEZ
LEGAL ADVISOR
CORPORATE LAW ASSOCIATES
1st Floor Queen’s Centre Shahra-e-Fatima Jinnah Lahor
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
CONTACT DETAILS
REGISTERED OFFICE
NETSOL IT Village (Software Technology Park) Lahore Ring Road, Ghazi Road InteWrchange, Lahore Cantt. 54792, Pakistan Tel: +92-42-111-44-88-00, +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
- Samba Bank Limited
AUDITORS
Crowe Hussain Chaudhury & Co. Chartered Accountants 7th Floor, Gulmohar Trade Center,
8 F, Main Market, Gulberg II, Lahore 54600, Pakistan
-
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
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 Half Year & Quarter Ended December 31, 2025 3
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 December 31, 2025.
GENERAL OVERVIEW
Chinese leasing company went live with Transcend Finance in Indonesia
NETSOL announced the successful go-live of its Transcend Finance platform for a leading Chinese leasing company, marking the customer’s official launch of operations in the Indonesian market. The client, known for offering a wide range of leasing solutions across sectors including equipment leasing, asset financing and commercial leasing, has deployed NETSOL’s Transcend Finance for its retail operations, alongside a customized funding system designed to support their unique operational needs in Indonesia. This go-live marked the completion of a greenfield implementation, enabling the customer to build entirely new processes free of legacy constraints.
NETSOL was chosen by Sonic Automotive to power next-gen digital retail experience
NETSOL announced its selection by Sonic Automotive, a Fortune 500 automotive and powersports dealership group, to lead a discovery engagement focused on defining the requirements and roadmap for a next-generation omnichannel digital retail platform powered by NETSOL’s Transcend Retail. This strategic engagement supports Sonic Automotive’s continued investment in digital innovation by defining a scalable platform architecture that enhances customer experience and dealer operations across its EchoPark Automotive operations.
NETSOL’s Transcend Retail signed two US dealer groups
The company announced new dealership deployments of its digital automotive retail platform Transcend Retail at Porsche North Houston, part of Indigo Auto Group, as well as Jim Shorkey Nissan, part of Jim Shorkey Auto Group. For Porsche North Houston, the deployment was completed in under five weeks, underscoring the platform’s flexibility, scalability and ease of implementation. The implementation for Jim Shorkey Nissan marked another milestone in NETSOL’s expansion in the North American market, where dealers and finance providers are under increasing pressure to modernize retail experiences and drive operational efficiency.
NETSOL signed a $50 million, four-year contract extension with a tier-one global auto captive
The company signed a $50 million contract extension with a tier-one global auto captive, a long-standing customer with whom NETSOL has maintained a strategic partnership since 1996. The total contract value is expected to be recognized over the four-year term and will support recurring revenue. The agreement extends the customer’s use of Transcend Finance and includes maintenance and licensing fees. The new contract builds on NETSOL’s earlier multi-country engagement, originally announced in 2015, when a contract was signed for over $100 million, under which NETSOL successfully implemented its platform across 12 markets.
NETSOL celebrated over 25 years of being listed on Nasdaq with Opening Bell Ceremony
Commemorating 26 years of being listed on Nasdaq, NETSOL Technologies Inc.’s Founder and Chief Executive Officer Najeeb Ghauri, along with senior company leaders and others, rang the Nasdaq Opening Bell on December 18, 2025, at the Nasdaq MarketSite in Times Square, New York City. This honor also recognized the company’s long-standing contributions to global technology innovation.
FINANCIAL PERFORMANCE
Comparisons of un-audited financial results for the second quarter ended December 31, 2025 with the corresponding period of the fiscal year 2025 and cumulative results for the six months ended December 31, 2025, with those of December 31, 2024, of the company are given below:
December 31, 2024, of the company are given |
below: |
|||
|---|---|---|---|---|
| STAND-ALONE FINANCIAL STATEMENTS | Oct-Dec | Oct-Dec | Jul-Dec | Jul-Dec |
| 2025 | 2024 | 2025 | 2024 | |
| (PKR in | 000’s) | (PKR in | 000’s) | |
| Revenue | 2,391 | 2,255 | 4,635 | 4,154 |
| Gross proft Net proft/ (loss) EPS/ (LPS) – basic (in PKR) EPS/ (LPS) – diluted (in PKR) EBITDA per share – diluted (in PKR) |
907 218 2.52 2.50 3.40 |
946 (27) (0.31) (0.31) 0.61 |
1,680 267 3.11 3.08 4.73 |
1,587 170 1.93 1.90 2.76 |
4 For The Half Year & Quarter Ended December 31, 2025
NETSOL Technologies Limited
Revenues during the quarter ended December 31, 2025 increased by 6% compared to the revenues posted in the same quarter of previous fiscal year. The company generated net revenue of PKR 2,391 million, primarily driven by services and subscription & support revenue, as compared to PKR 2,255 million during the corresponding period last year. On the services side, revenue increased to PKR 987 million from PKR 805 million last year, mainly due to implementation, system upgrades and customization work for customers. In addition to it, Subscription and Support revenue clocked in at PKR 1,405 million as compared to PKR 1,451 million during the corresponding period of the previous fiscal year.
Gross Margins during the period clocked in at PKR 907 million as compared to the corresponding period where margins were recorded at PKR 946 million. The Company closed the quarter with a net profit of PKR 218 million, compared to a net loss of PKR 27 million in the comparable period. The net profit for the current period includes currency exchange gain of PKR 24 million, as compared to a foreign exchange loss of PKR 278 million reported in the corresponding period of the last fiscal year. The Company reported basic and diluted earnings per share of PKR 2.52 & 2.50 in comparison of loss of PKR 0.31 per share in the corresponding period. The company posted net EBITDA profit of PKR 3.40 per diluted share compared to PKR 0.61 in the comparable period
On half yearly basis, Company posted net revenues of PKR 4,635 million compared to PKR 4,154 million in the corresponding period. Gross Margins during the period clocked in at PKR 1,680 million as compared to the corresponding period where margins were recorded at PKR 1,587 million. The Company posted a net profit after tax of PKR 267 million in comparison of PKR 170 million during the same period last year. Basic & diluted earnings per share for the half year ended December 31, 2025 were PKR 3.11 & 3.08 respectively in comparison of PKR 1.93 & 1.90 in the corresponding period. Half year EBIDTA profit for the current period was PKR 4.73 per share compared to PKR 2.76 per share in the preceding period. During the half year ended December 31, 2025, the Company transferred 1,346,330 treasury shares to eligible employees under the Company’s Stock Option Scheme at a grant price of PKR 77.84 per share, pursuant to the special resolution passed at the Extraordinary General Meeting held on December 31, 2024.
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 December 31, 2025 were PKR 3,225 million compared to PKR 2,283 million in the same period of fiscal 2025. Consolidated gross profit for the quarter was PKR 1,571 million as compared to PKR 922 million in the same period last year. On consolidated basis, the company posted net consolidated profit of PKR 644 million in the current quarter compared to loss of PKR 77 million posted in the same period last year. Basic and diluted earnings per share for the quarter ended December 31, 2025 were PKR 7.44 and PKR 7.38 compared to basic and diluted loss per share of 0.88 and PKR 0.87 in the same period of last fiscal year.
Future Outlook
The company continues to strengthen its position as a trusted partner for financial institutions worldwide through Transcend Finance, its flagship platform that enables lenders, captives and commercial financiers to manage the complete finance lifecycle with intelligence and precision, while optimizing their operations, driving efficiency and scaling with confidence.
At the same time, Transcend Retail, NETSOL’s digital automotive retail platform, is rapidly gaining adoption among leading dealer group and dealerships in the United States, transforming the car-buying experience and helping dealers operate smarter, more profitable businesses.
Alongside these cornerstone offerings, NETSOL will continue to promote Transcend Marketplace, Transcend Consultancy and Transcend AI Labs, creating a comprehensive ecosystem that addresses the end-to-end needs of both the financial and automotive retail sectors.
The company’s healthy sales pipeline reflects strong market demand and the continued expansion of its client base across Tier-1, Tier-2 and Tier-3 organizations. NETSOL’s strategic approach ensures that businesses of all sizes can access scalable, innovative and industry-leading solutions tailored to their specific needs.
By continuing to sponsor, exhibit and actively participate in leading global industry events in North America, Europe, APAC and now the Middle East, NETSOL reinforces its commitment to thought leadership, collaboration and innovation. These engagements allow the company to stay ahead of emerging trends, deepen relationships with existing clients and cultivate new partnerships.
These events provide valuable opportunities to showcase the full power of the company’s Transcend Platform, engage directly with customers and prospects, and share insights on the latest trends in the industry.
Beyond product promotion, NETSOL will continue to invest in innovation, operational excellence and strategic partnerships. By leveraging the Transcend Platform and its AI-driven capabilities, the company empowers clients to unlock efficiencies, improve decision-making and achieve sustainable growth in a rapidly evolving market.
With a focus on delivering cutting-edge solutions, actionable insights and unparalleled support, NETSOL is poised to further expand its global footprint and solidify its leadership across the industries in which it operates. The company’s unified approach, combining technology, consultancy and AI expertise, ensures that clients can navigate the future
For The Half Year & Quarter Ended December 31, 2025 5
NETSOL Technologies Limited
with confidence while benefiting from transformative solutions that drive long-term value.
Looking forward, NETSOL is confident that its focus on Transcend Finance, Transcend Retail and the broader Transcend ecosystem will continue to fuel growth, foster industry leadership and deliver sustainable value for clients, partners and stakeholders around the world.
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
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Salim Ullah Ghauri
Chief Executive Officer
Director
February 12, 2026
6 For The Half Year & Quarter Ended December 31, 2025
NETSOL Technologies Limited
2025 31 [][] [] [][] (General Overview) live Transcend Finance live Transcend Finance [] [] [][] [][][] [] [][] Go-Live [][] Sonic Automotive next-gen Sonic Automotive Fortune 500 automotive next-generation Transcend Retail Sonic Automotive [] [] discovery EchoPark Automotive Transcent Retail Jim Shorkey Jim Shorkey Porsche North Housten Indigo Auto Group Porsche North Housten Nissan Jim Shorkey Nissan 50 tier-one global auto captive 50 tier-one global auto captive [] 1996 [] [] Transcend Finance 100 2015 12 25 [] [] Nasdaq Opening Bell Ceremony [] [] [][] 26 [] [] Nasdaq Nasdaq 2025 18 [][] Nasdaq (Financial Performance) 2024 31 2025 31 2024 2025 31
For The Half Year & Quarter Ended December 31, 2025 7
NETSOL Technologies Limited
2024 2025 2024 2025 4,154 4,635 2,255 2,391 1,587 1,680 946 907 170 267 (27) 218 / 1.93 3.11 (0.31) 2.52 / 1.90 3.08 (0.31) 2.50 / 2.76 4.73 0.61 3.40 EBITDA 6 2025 31 2,391 2,255 987 805 [][] 1,405 1,451 27 946 907 278 218 0.31 24 3.40 0.61 2.50 2.52 EBITDA 4,635 4,154 170 1,587 1,680 2025 31 267 4.73 EBITDA 3.08 3.11 1.90 1.93 2025 31 2.76 2024 31 1,346,330 77.84 [] [][][][] 2025 31 [] [][][][] [] [] 2,283 2024 3,225 77 1,571 922 2025 31 644 7.38 7.44 0.87 0.88 (Future Outlook) Transcend Finance [][] []
8 For The Half Year & Quarter Ended December 31, 2025
NETSOL Technologies Limited
Transcend Retail automotive retail Transcend AI Labs Transcend Consultancy Transcend Marketplace Tier-3 Tier-1, Tier-2 [] APAC Transcend [] [] AI Transcend [] [] AI [][] Transcend ecosystem Transcend Finance, Transcend Retail Acknowldgement [][] 2026 12
For The Half Year & Quarter Ended December 31, 2025 9
NETSOL Technologies Limited
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10 For The Half Year & Quarter Ended December 31, 2025
NETSOL Technologies Limited
Condensed Interim Un-Consolidated Financial Statements
For the Half Year & Quarter Ended December 31, 2025
For The Half Year & Quarter Ended December 31, 2025 11
NETSOL Technologies Limited
CONDENSED INTERIM UN-CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UN-AUDITED) As at December 31, 2025
| NOTE | Dec 31 2025 Unaudited Rupees in |
Jun 30 2025 Audited Thousands |
|---|---|---|
| ASSETS Non Current Assets Property and equipment 5 Long term investments 6 Long term contract assets Long term loans to employees Current Assets Trade debts 7 Contract assets Loans and advances Deposits and short term prepayments Other receivables Due from related parties 8 Prepaid tax asset Short term investments Cash and bank balances |
||
| 1,294,333 | 1,225,066 537,218 20,846 8,590 |
|
| 537,218 | ||
| 23,966 | ||
| 7,370 | ||
| 1,862,887 | 1,791,720 | |
| 6,525,346 | 5,740,008 1,997,736 42,041 226,057 127,085 362,685 70,468 200,000 3,696,726 |
|
| 2,113,107 | ||
| 65,721 | ||
| 187,038 | ||
| 146,075 | ||
| 592,480 | ||
| 83,415 | ||
| 200,000 | ||
| 2,782,383 | ||
| 12,695,565 | 12,462,806 | |
| Total Assets | 14,558,452 | 14,254,526 |
| EQUITY AND LIABILITIES Share Capital and Reserves Authorized share capital 200,000(June 30,2025: 200,000)ordinaryshares of Rs. 10 each |
2,000,000 | |
| 2,000,000 | ||
| Issued, subscribed and paid up capital 9 Reserves Share deposit money |
898,369 | 898,369 10,016,074 3,868 |
| 10,388,297 | ||
| - | ||
Shareholders’ Equity Non Current Liabilities Long term fnancing 10 Long term advances Current Liabilities Trade and other payables Contract liabilities Short term borrowings 11 Current portion of long term fnancing Unclaimed dividend Contingencies and commitments 12 |
11,286,666 | 10,918,311 |
| 72,161 | 13,343 5,415 |
|
| 12,135 | ||
| 84,296 | 18,758 | |
| 858,680 | 972,870 151,621 2,180,000 8,428 4,538 |
|
| 107,977 | ||
| 2,180,000 | ||
| 36,295 | ||
| 4,538 | ||
| 3,187,490 | 3,317,457 - |
|
| - | ||
| Total Equity andLiabilities | 14,558,452 | 14,254,526 |
(un-aud ited).
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DIRECTOR
CHIEF EXECUTIVE OFFICER CHIEF FINAN CIA L OFFICER
12 For The Half Year & Quarter Ended December 31, 2025
NETSOL Technologies Limited
CONDENSED INTERIM UN-CONSOLIDATED STATEMENT OF PROFIT OR LOSS (UN-AUDITED) For The Half Year & Quarter Ended December 31, 2025
| NOTE | Half Year Ended December 31 Quarter Ended December 31 2025 2024 2025 2024 (Un-audited) (Un-audited) Rupees in Thousands Rupees in Thousands 4,635,346 4,154,022 2,391,115 2,255,142 (2,955,559) (2,567,190) (1,483,737) (1,308,996) 1,679,787 1,586,832 907,378 946,146 (452,624) (393,272) (224,897) (209,295) (788,925) (750,261) (398,843) (375,072) (1,241,549) (1,143,533) (623,740) (584,367) |
Half Year Ended December 31 Quarter Ended December 31 2025 2024 2025 2024 (Un-audited) (Un-audited) Rupees in Thousands Rupees in Thousands 4,635,346 4,154,022 2,391,115 2,255,142 (2,955,559) (2,567,190) (1,483,737) (1,308,996) 1,679,787 1,586,832 907,378 946,146 (452,624) (393,272) (224,897) (209,295) (788,925) (750,261) (398,843) (375,072) (1,241,549) (1,143,533) (623,740) (584,367) |
Half Year Ended December 31 Quarter Ended December 31 2025 2024 2025 2024 (Un-audited) (Un-audited) Rupees in Thousands Rupees in Thousands 4,635,346 4,154,022 2,391,115 2,255,142 (2,955,559) (2,567,190) (1,483,737) (1,308,996) 1,679,787 1,586,832 907,378 946,146 (452,624) (393,272) (224,897) (209,295) (788,925) (750,261) (398,843) (375,072) (1,241,549) (1,143,533) (623,740) (584,367) |
Half Year Ended December 31 Quarter Ended December 31 2025 2024 2025 2024 (Un-audited) (Un-audited) Rupees in Thousands Rupees in Thousands 4,635,346 4,154,022 2,391,115 2,255,142 (2,955,559) (2,567,190) (1,483,737) (1,308,996) 1,679,787 1,586,832 907,378 946,146 (452,624) (393,272) (224,897) (209,295) (788,925) (750,261) (398,843) (375,072) (1,241,549) (1,143,533) (623,740) (584,367) |
|---|---|---|---|---|
| Revenue from contracts with customers - net 13 Cost of revenue |
4,635,346 |
4,154,022 2,391,115 (2,567,190) (1,483,737) |
2,255,142 (1,308,996) |
|
| (2,955,559) | ||||
| Gross proft Selling and promotional expenses Administrative expenses |
1,679,787 | 1,586,832 907,378 |
946,146 | |
| (452,624) | (393,272) | (224,897) | (209,295) (375,072) |
|
| (788,925) | (750,261) | (398,843) | ||
| (1,241,549) | (1,143,533) (623,740) |
(584,367) | ||
| Operating proft Other operating expenses Finance cost Other income 14 |
438,238 | 443,299 283,638 |
361,779 | |
| (184,187) | (351,329) | (92,818) | (386,156) (60,692) 145,574 |
|
| (94,421) | (129,457) | (47,617) | ||
| 164,162 | 355,379 | 105,306 | ||
| (114,446) | (125,407) (35,129) |
(301,274) | ||
| Proft before Final Taxes and Income Tax Final tax/levies 15 |
323,792 | 317,892 248,509 (148,385) (30,837) |
60,505 (87,842) |
|
| (56,367) | ||||
| Proft / (Loss) before Income Tax Income tax |
267,425 | 169,507 217,672 - - |
(27,337) - |
|
| - | ||||
| Net Proft/(Loss)for the Period | 267,425 | 169,507 217,672 |
(27,337) | |
Earnings /(Loss) Per Share - Basic and Diluted 16 - Basic |
1.93 2.52 |
(0.31) | ||
| 3.11 | ||||
| - Diluted | 3.08 | 1.90 2.50 |
(0.31) |
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DIRECTOR
CHIEF EXECUTIVE OFFICER CHIEF FINAN CIA L OFFICER
For The Half Year & Quarter Ended December 31, 2025 13
NETSOL Technologies Limited
CONDENSED INTERIM UN-CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED) For The Half Year & Quarter Ended December 31, 2025
| Half Year Ended December 31 Quarter Ended December 31 2025 2024 2025 2024 (Un-audited) (Un-audited) Rupees in Thousands Rupees in Thousands |
Half Year Ended December 31 Quarter Ended December 31 2025 2024 2025 2024 (Un-audited) (Un-audited) Rupees in Thousands Rupees in Thousands |
Half Year Ended December 31 Quarter Ended December 31 2025 2024 2025 2024 (Un-audited) (Un-audited) Rupees in Thousands Rupees in Thousands |
Half Year Ended December 31 Quarter Ended December 31 2025 2024 2025 2024 (Un-audited) (Un-audited) Rupees in Thousands Rupees in Thousands |
Half Year Ended December 31 Quarter Ended December 31 2025 2024 2025 2024 (Un-audited) (Un-audited) Rupees in Thousands Rupees in Thousands |
|
|---|---|---|---|---|---|
| Net Proft /(Loss) for the Period Other Comprehensive Income for the period Items that may be re-classifed subsequently to proft or loss Items that will not be re-classifed subsequently to proft or loss |
267,425 |
169,507 217,672 (27,337) |
|||
| - | - | ||||
| - | - | ||||
| - | - | ||||
| Total Comprehensive Income/(loss)for the Period 267,425 |
169,507 217,672 (27,337) |
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DIRECTOR
CHIEF EXECUTIVE OFFICER CHIEF FINAN CIA L OFFICER
14 For The Half Year & Quarter Ended December 31, 2025
NETSOL Technologies Limited
CONDENSED INTERIM UN-CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UN-AUDITED) For The Half Year Ended December 31, 2025
| Particulars | Share Capital |
Reserves | Reserves | Reserves | Reserves | Total Reserves |
Share Deposit Money |
Total Equity |
|---|---|---|---|---|---|---|---|---|
| Capital Reserve | Revenue Reserve |
|||||||
| Share Premium |
Employee Share Option Compen- sation Reserve |
Treasury Share Reserve |
Unappro- priated Proft |
|||||
| Rupees in Thousands | ||||||||
| Balance as at June 30, 2024 Net proft for the period Other comprehensive income for the period Total comprehensive income for the period Transactions with owners of the equity Payment of fnal dividend for the period ended June 30, 2024 Employee share option reserve |
898,369 | 304,167 264,787 (184,739) 9,280,082 9,664,297 13 10,562,679 |
||||||
| - - |
- - |
- - |
- - |
169,507 - |
169,507 - |
- |
169,507 - |
|
| - - - |
- - - 169,507 169,507 - 196,842 - - - (263,511) (263,511) - (263,511) - 4,349 - - 4,349 - 4,349 |
|||||||
| Balance as at December 31, 2024 | 898,369 | 304,167 269,136 (184,739) 9,186,078 9,574,642 13 10,473,024 |
||||||
| Balance as at June 30, 2025 Net proft for the period Other comprehensive income for the period Total comprehensive income for the period Transactions with owners of the equity Re-issue of treasury shares against stock options to employees Share deposit moneyreceived - net |
898,369 | 304,167 269,136 (604,727) 10,047,498 10,016,074 3,868 10,918,311 |
||||||
| - | - | - | - | 267,425 | 267,425 |
- |
267,425 |
|
| - | - | - | - | - | - | - | - | |
| - - - |
- - - 267,425 267,425 - 267,425 390 (19,953) 124,361 - 104,798 (104,798) - - - - - - 100,930 100,930 |
|||||||
| Balance as at December 31, 2025 | 898,369 | 304,557 249,183 (480,366) 10,314,923 10,388,297 - 11,286,666 |
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DIRECTOR
CHIEF EXECUTIVE OFFICER CHIEF FINAN CIA L OFFICER
For The Half Year & Quarter Ended December 31, 2025 15
NETSOL Technologies Limited
CONDENSED INTERIM UN-CONSOLIDATED STATEMENT OF CASH FLOWS (UN-AUDITED)
For The Half Year Ended December 31, 2025
| For The Half Year Ended December 31, 2025 | ||
|---|---|---|
| NOTE | Rupees in Thousands December 31 December 31 2025 2024 (Un-audited) |
|
| Proft before fnal taxes and income tax Adjustments for: - Depreciation - own assets 5.1 - Depreciation of right of use assets - Gain on disposal of operating fxed assets - Foreign exchange loss - net 14 - Finance cost - Interest income - Effect of discounting of long term contract assets - Employee share option compensation expense - Provision for expected credit losses |
317,892 |
|
| 323,792 | ||
| 130,534 | 152,188 607 (76) 107,155 127,007 (354,253) - 4,349 56,286 |
|
| - | ||
| (21,969) | ||
| 24,594 | ||
| 91,245 | ||
| (137,730) | ||
| (3,413) | ||
| - | ||
| 29,130 | ||
| 112,391 | 93,263 | |
| Operating proft before working capital changes Decrease / (Increase) in current assets - Trade debts 7 - Contract assets - Loans and advances - Deposits and short term prepayments - Other receivables - Due from related parties 8 (Decrease) / Increase in current liabilities - Trade and other payables - Contract liabilities Cash used in Operations Levy / fnal tax paid 15 Dividend paid Finance cost paid |
436,183 | 411,155 |
| (747,767) | 479,556 35,329 56,695 (114,286) (94,344) 93,508 174,039 (1,367,488) |
|
| (206,220) | ||
| (22,460) | ||
| 39,019 | ||
| (5,531) | ||
| (229,795) | ||
| (94,534) | ||
| (43,342) | ||
| (1,310,630) | (736,991) | |
| (69,314) | (167,949) (262,712) (132,221) |
|
| - | ||
| (111,356) | ||
| (180,670) | (562,882) | |
| Net cash used in Operating Activities CASH FLOWS FROM INVESTING ACTIVITIES |
(1,055,117) | (888,718) |
| Payment for acquisition of property and equipment 5.1 Proceeds from disposal of property and equipment 5.1 Short term investments Advance against capital expenditure 5.2 Interest received |
(166,701) | (122,612) 76 (200,000) (40,544) 359,808 |
| 21,990 | ||
| - | ||
| (33,121) | ||
| 124,271 | ||
| Net cash used in Investing Activities CASH FLOWS FROM FINANCING ACTIVITIES |
(53,561) | (3,272) |
| Share deposit money - net Repayment of lease liabilities Long term fnancing obtained Repayment of long term fnancing 10 Short term borrowing - net 11 Longterm advances - net |
100,930 | - (1,017) - (7,016) 600,000 1,710 |
| - | ||
| 98,161 | ||
| (11,476) | ||
| - | ||
| 6,720 | ||
| Net Cashgenerated from FinancingActivities | 194,335 | 593,677 |
| Net Decrease in Cash and Cash Equivalents Cash and cash equivalents at the beginningof theperiod |
(914,343) | (298,313) 4,647,055 |
| 3,696,726 | ||
| Cash and Cash Equivalents at the End of the Period | 2,782,383 | 4,348,742 |
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DIRECTOR
CHIEF EXECUTIVE OFFICER CHIEF FINAN CIA L OFFICER
16 For The Half Year & Quarter Ended December 31, 2025
NETSOL Technologies Limited
NOTES TO AND FORMING PART OF THE CONDENSED INTERIM UN-CONSOLIDATED FINANCIAL STATEMENTS (UN-AUDITED)
For The Half Year Ended December 31, 2025
1. LEGAL STATUS AND NATURE OF BUSINESS
NetSol Technologies Limited (“the Company”), was 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 converted into a 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:
allied services in Pakistan as well as abroad. Geographical locations and addresses of its business units are as follows: |
|
|---|---|
| Address/Location | Purpose |
| 1 NetSol IT Village,(Software Technology Park) Lahore Ring Road, Ghazi Road Interchange, Lahore Cantt. Pakistan. |
Registered offce and business unit |
| 2 43/1/Q, Amna Villa 1, Block-6, PECHS Karachi Pakistan. | Branch offce |
| 3 House No. 4, Safari villas 1, Bahria Town, Rawalpindi. Pakistan. | Branch offce |
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.
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 (unaudited) 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, directives and notifications issued under the Companies Act, 2017.
Where the provisions of, directives and notifications issued under the Companies Act, 2017 differ with the requirements of IAS 34, the provisions of, directives and notifications 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.
For The Half Year & Quarter Ended December 31, 2025 17
NETSOL Technologies Limited
3. Material Accounting Policy Information
The Company’s accounting policies and methods of computation adopted in the preparation of these condensed interim unconsolidated financial statements (un-audited) are the same as those applied in the preparation of preceding annual financial statements of the Company for the year ended June 30, 2025.
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.
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 fnancial 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 fnancial statements of the Company for the year ended June 30, 2025. |
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 fnancial 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 fnancial statements of the Company for the year ended June 30, 2025. |
|---|---|
| 5. Property and Equipment Dec 31 Jun 30 2025 2025 |
|
| NOTE (Un-audited) (Audited) Rupees in Thousands Operating fxed assets 5.1 1,207,680 1,171,534 Advance against capital expenditure 5.2 86,653 53,532 1,294,333 1,225,066 5.1. Operating fxed assets Opening written down value 1,171,534 1,208,998 Additions during the period / year - cost 5.1.1 166,701 279,045 Disposals during the period / year-net book value (21) (3,265) |
|
| 1,294,333 | 1,225,066 |
| 5.1. Operating fxed assets Opening written down value 1,171,534 Additions during the period / year - cost 5.1.1 166,701 Disposals during the period / year-net book value (21) |
1,208,998 279,045 (3,265) |
1,338,214 Depreciation charge for theperiod/ year (130,534) |
1,484,778 (313,244) |
| 1,207,680 | 1,171,534 |
| 5.1.1 Following is the detail of additions during the period / year: At cost Furniture and fxtures 6,538 Vehicles 114,648 Offce equipment 4,616 Computer equipment 39,508 Air conditioners 1,111 Generators 280 Computer softwares - |
3,921 24,794 15,514 125,849 3,848 - 105,119 |
| 166,701 | 279,045 |
18 For The Half Year & Quarter Ended December 31, 2025
NETSOL Technologies Limited
5.2. This primarily represents the advance paid for the solar system to be installed at the Company’s premises.
| 5.2. This primarily represents the advance paid for the solar system to be i Company’s premises. |
nstalled at the |
|---|---|
| 6. Long Term Investments NOTE Dec 31 2025 (Un-audited) Rupees in |
Jun 30 2025 (Audited) Thousands |
At cost NetSol Innovation (Private) Limited 6.1 515,000 NetSol Ascent Middle East Computer Equipment TradingL.L.C. 6.2 22,218 |
515,000 22,218 |
| 537,218 | 537,218 |
6.1 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. The 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.
6.2 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). The main objective of the investee Company is to provide services related to computer systems and communication equipment and softwares. Principal place of the business of the subsidiary is Dubai (U.A.E).
| 7. Trade Debts |
Dec 31 Jun 30 2025 2025 |
Dec 31 Jun 30 2025 2025 |
|---|---|---|
| NOTE Related Parties 7.1 Considered good - unsecured Considered doubtful - unsecured Other Parties Considered good - unsecured Considered doubtful - unsecured Less: Provision for expected credit losses |
(Un-audited) (Audited) Rupees in Thousands 5,668,481 5,007,875 174,376 225,827 5,842,857 5,233,702 856,865 732,133 102,628 102,054 959,493 834,187 (277,004) (327,881) 6,525,346 5,740,008 3,473,981 3,013,655 923,527 992,898 675,863 796,046 392,443 425,819 292,122 - 53,974 - 30,947 5,284 |
|
| 5,668,481 | 5,007,875 225,827 |
|
| 174,376 | ||
| 5,842,857 | 5,233,702 | |
| 856,865 | 732,133 102,054 |
|
| 102,628 | ||
| 959,493 | 834,187 (327,881) |
|
| (277,004) | ||
| 6,525,346 | 5,740,008 | |
| 7.1 Amount receivable from related parties are as under: NetSol Technologies (Beijing) Co., Ltd. Ascent Europe Limited NetSol Technologies Americas Inc. NetSol Technologies Australia Pty Limited NetSol Ascent Middle East Computer Equipment Trading L.L.C. NetSol Technologies (Thailand) Limited NetSol Technologies Europe Limited |
3,013,655 992,898 796,046 425,819 - - 5,284 |
|
| 3,473,981 | ||
| 923,527 | ||
| 675,863 | ||
| 392,443 | ||
| 292,122 | ||
| 53,974 | ||
| 30,947 | ||
| 5,842,857 | 5,233,702 |
For The Half Year & Quarter Ended December 31, 2025 19
NETSOL Technologies Limited
| NOTE Dec 31 2025 (Un-audited) Rupees in |
Jun 30 2025 (Audited) Thousands |
|---|---|
| 8. Due from Related Parties Considered good - unsecured Associates 8.1 NetSol Technologies Americas, Inc. 41,222 NetSol Connect (Private) Limited 14,642 NetSol Technologies (Beijing) Co., Ltd. 113,923 Wholly owned Subsidiary NetSol Innovation (Private) Limited 8.2 318,064 NetSol Ascent Middle East Computer Equipment Trading L.L.C. 8.1 102,179 NetSol Institute of Artifcial Intelligence (Private) Limited 8.1 2,450 |
54,595 17,455 115,741 174,178 - 716 |
592,480 |
362,685 |
8.1 These relate to the normal course of business of the Company and are interest free. 8.2 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.
8.3 Balances with related parties are maintained on a running account basis; therefore, age analysis of amounts due from related parties is not practically possible.
9. Issued, Subscribed and Paid up Capital
of each month. 8.3 Balances with related parties are maintained on a running account basis; analysis of amounts due from related parties is not practically possible. 9. Issued, Subscribed and Paid up Capital |
of each month. 8.3 Balances with related parties are maintained on a running account basis; analysis of amounts due from related parties is not practically possible. 9. Issued, Subscribed and Paid up Capital |
therefore, age |
|---|---|---|
| Dec 31 2025 Jun 30 2025 Dec 31 2025 (Un-audited) (Audited) (Un-audited) Number of shares in Thousands Rupees in 42,686 42,686 Ordinary shares of Rs. 10 each fully paid in cash 426,862 47,151 47,151 Ordinary shares of Rs. 10 each allotted as fully paid bonus shares 471,507 89,837 89,837 898,369 |
Jun 30 2025 (Audited) Thousands 426,862 471,507 898,369 |
|
| 89,837 | 89,837 898,369 |
|
| 9.1 Number of shares outstanding as at the reporting date: Opening balance 89,837 Treasury shares of Rs. 10 each purchased at market value (4,690) Re-issue of treasuryshares against stock options to employees 1,346 |
89,837 (4,690) - 85,147 |
|
| Closingbalance 86,493 |
9.2 NetSol Technologies Inc. 16000 Ventura Boulevard STE 770 ENCINO CA 91436, USA is the parent company, holding 68.67% (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.
9.3 There are 1.65 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, 1.35 million shares (June 30, 2025: Nil) were issued against options exercised by the eligible employees.
9.4 The share capital includes 3.34 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, 1.35 million (June 30, 2025: Nil) treasury shares are reissued agaisnt employee stock options scheme.
20 For The Half Year & Quarter Ended December 31, 2025
NETSOL Technologies Limited
| NOTE Dec 31 2025 Jun 30 2025 (Un-audited) (Audited) Rupees in Thousands |
NOTE Dec 31 2025 Jun 30 2025 (Un-audited) (Audited) Rupees in Thousands |
|---|---|
10. LONG TERM FINANCES Loan obligation 10.1 108,456 Less: Current portion of longterm fnancing (36,295) |
21,771 (8,428) |
72,161 |
13,343 |
10.1 This represents finance facilities obtained from time to time, from First Habib Modaraba (the modaraba), for purchase of various vehicles. The facility is repayable in 36 equal monthly installments. This facility carries mark up at rates ranging between 11.92% to 12.40% (June 30, 2025: 12.27% to 21.49%) per annum. These facilities are secured through lien mark in favour of the Modaraba.
11. Short Term Borrowings
in favour of the Modaraba. 11. Short Term Borrowings |
|
|---|---|
| Askari Bank Limited - ERF - II 500,000 Samba Bank Limited - ERF - II 380,000 Habib Metropolitan Bank Limited - Istisna / Al Bai - Islamic Banking 1,300,000 |
500,000 380,000 1,300,000 |
| 2,180,000 | 2,180,000 |
11.1 All the terms and conditions of short-term borrowings are the same as those already disclosed in the annual financial statements for the year ended June 30, 2025 except as specifically disclosed here;
11.2 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 sublimits 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.
12. Contingencies and Commitments
12.1 Contingencies
12.1.1 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 the following;
On January 10, 2025, the Company filed a writ petition before the Islamabad High Court challenging the vires of Section 4C of the Income Tax Ordinance, 2001. The petition was admitted and a stay order was granted. Subsequently, the Inland Revenue Department filed an Intra-Court Appeal (ICA) before the Division Bench of the Islamabad High Court, which was later transferred to the Supreme Court of Pakistan, now to the Federal Constitutional Court of Pakistan pursuant to an order of the Constitutional Bench.
Subsequent to the reporting date, the Federal Constitutional Court of Pakistan decided the matter in favour of the Inland Revenue Department, holding that the levy of Super Tax under Section 4C of the Income Tax Ordinance, 2001 is constitutionally valid and applicable from tax year 2022 onwards.
The management has evaluated the applicability of Super Tax to the Company and is of the view that the Company’s income is covered under the final tax regime in accordance with Section 154 of the Income Tax Ordinance, 2001 and therefore, does not fall within the scope of Section 4C. However, the detailed order of the Court is awaited and subject to the contents and implications thereof, if the decision adversely affects the Company’s position, the Company would file a review petition against the aforesaid decision after consultation with its legal counsel.
For The Half Year & Quarter Ended December 31, 2025 21
NETSOL Technologies Limited
Based on the current status of the matter and management’s assessment, supported by the opinion of the tax consultant, no provision of super tax has been recognized in these financial statements.
12.2 Commitments
-
(i) Bank guarantees have been issued amounting to Rs. 339.24 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. 55.41 million as at December 31, 2025 (June 30, 2025: Rs. 73.90 million).
Half Year Ended December 31 Quarter Ended December 31 2025 2024 2025 2024 (Un-audited) (Un-audited) Rupees in Thousands Rupees in Thousands
13. Revenue from Contracts with Customers - Net
Disaggregation of revenue from contract with customers
Set out below is the disaggregation of the Company’s revenue from contracts with customers:
| Export Revenue - Services - Subscription and Support Local Revenue - Services - Subscription and Support - Less: Sales tax |
||||
|---|---|---|---|---|
| 1,793,196 | 1,441,603 | 977,207 | 799,303 1,438,259 |
|
| 2,822,455 | 2,679,507 | 1,404,535 | ||
| 4,615,651 | 4,121,110 | 2,381,742 | 2,237,562 | |
| 22,847 | 13,220 | 10,873 | 6,117 12,553 (1,090) |
|
| - | 21,946 | - | ||
| (3,152) | (2,254) | (1,500) | ||
| 19,695 | 32,912 | 9,373 | 17,580 | |
| 4,635,346 | 4,154,022 | 2,391,115 | 2,255,142 |
13.1 Revenue has been recognized over time for both local and export sales during the period.
| 14. Other Income Income from fnancial assets Proft on bank deposits and short term investments 14.1 Interest income from related party Income from non-financial assets Gain on foreign currency translation Gain on disposal of operating fxed assets Rental income Effect of discounting of long term contract assets |
||||
|---|---|---|---|---|
| 124,249 | 350,261 | 53,748 | 141,879 3,094 |
|
| 13,481 | 3,992 | 7,999 | ||
| 137,730 | 354,253 | 61,747 | 144,973 | |
| - | - | 24,167 | - 76 525 - |
|
| 21,969 | 76 | 17,165 | ||
| 1,050 | 1,050 | 525 | ||
| 3,413 | - | 1,702 | ||
| 26,432 | 1,126 | 43,559 | 601 | |
| 164,162 | 355,379 | 105,306 | 145,574 |
22 For The Half Year & Quarter Ended December 31, 2025
NETSOL Technologies Limited
-
14.1 Profit is earned under both conventional mark-up arrangement and Shariah compliant arrangement. It includes Rs. 98.31 million (December 31, 2024: 308.30 million) profit earned on Shariah compliant bank deposits & investments.
-
14.2 Income is earned under conventional advance arrangement with related party and Rs. 13.48 million (December 31, 2024: 3.99 million) interest is earned on it.
-
Final Taxes / Levies
15.1 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.
-
15.2 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.
-
Earnings Per Share - Basic and Diluted
| 16. Earnings Per Share - Basic and Diluted rates is charged to the income of the Company generated from income. |
16. Earnings Per Share - Basic and Diluted rates is charged to the income of the Company generated from income. |
sources other than export |
sources other than export |
|---|---|---|---|
| Half Year Ended December 31, 2025 2024 (Un-audited) Rupees in Thousands |
Quarter Ended December 31 2025 2024 (Un-audited) Rupees in Thousands |
||
| Proft/(loss)attributable to ordinaryshareholders 267,425 |
169,507 | 217,672 | (27,337) |
| Weighted average number of ordinary shares (Basic) Issued ordinary shares at beginning of the period 85,147 Less: weighted average number of treasury shares held by the Company 823 |
89,837 (2,000) |
89,837 (2,000) |
|
| 85,425 | |||
| 1,054 | |||
Weighted average number of ordinary shares as at Dec 31, 85,970 |
87,837 | 86,479 | 87,837 |
| Earnings/(loss) per share - basic 3.11 |
1.93 | 2.52 | (0.31) |
| Weighted average number of ordinary shares (Diluted) Weighted average number of ordinary shares (Basic) 85,970 Effect of share options 980 |
87,837 1,280 |
87,837 1,314 |
|
| 86,479 | |||
| 710 | |||
| Weighted average number of ordinary shares (Diluted) 86,950 |
89,117 | 87,189 | 89,151 |
| Earnings/(loss) per share - Diluted 3.08 |
1.90 | 2.50 | (0.31) |
17. 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:
For The Half Year & Quarter Ended December 31, 2025 23
NETSOL Technologies Limited
| Half Year Ended December 31 2025 2024 (Un-audited) Relationshipwith the Company Nature of Transactions Rupees in Thousands |
Half Year Ended December 31 2025 2024 (Un-audited) Relationshipwith the Company Nature of Transactions Rupees in Thousands |
|---|---|
| Subsidiary Admin and IT services 1,200 Rental income 600 Mark-upincome 13,481 |
1,200 600 3,992 |
| Associated undertaking Rental charges 450 Provision of services 2,242,182 Purchase of services 25,505 |
450 1,677,225 23,508 |
| Parent Dividend - |
178,190 |
| Key management personnel Salaries and benefts 201,811 Retirement benefts 8,215 Commissionpaid 23,876 |
177,148 7,374 7,834 |
| Post employment beneft Contribution to defned contributionplan 112,853 |
94,743 |
18. 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 a 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 these condensed, interim, un-consolidated financial statements (unaudited) does not include all the information and disclosures as required in the annual financial statements.
19. 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.
20. Shariah Screening Disclosures by Company Listed on Islamic Index
| Dec 31 | Jun 30 | ||
|---|---|---|---|
| 2025 | 2025 | ||
| NOTE | (Un-audited) | (Audited) |
|
| Rupees in | Thousands | ||
| Shariah compliant bank deposits/bank balances | 2,375,700 | 2,166,070 | |
| Financing obtained as per Islamic mode | 11 | 1,408,456 | 1,321,771 |
24 For The Half Year & Quarter Ended December 31, 2025
NETSOL Technologies Limited
| NOTE Half Year Ended December 31, 2025 2024 (Un-audited) Rupees in Thousands |
NOTE Half Year Ended December 31, 2025 2024 (Un-audited) Rupees in Thousands |
|---|---|
| Revenue earned from a Shariah compliant business segment 13 4,635,346 Proft earned from Shariah compliant bank deposits/ bank balances 14 98,310 Proft paid on Islamic mode of fnancing 55,920 Interest earned on any conventional loan or advance 14 13,480 Interest / markup accrued on any conventional loan or advance 14 35,330 Relationship with Shariah compliant banks 11 Source and detailed breakup of other income, including breakup of other o portions of other income into Shariah-compliant and non compliant income: i) Gain on sale of operating fxed assets 21,969 ii)Rental income 1,050 |
4,154,022 308,300 62,570 3,990 65,670 r miscellaneous 76 1,050 |
| 20.1 | Relationship with Shariah-compliant banks | Relationship with Shariah-compliant banks | |
|---|---|---|---|
| Name | Relationship | ||
| Habib Metropolitan Bank Limited | Funded / Non-funded facility & Bank balance | ||
| First Habib Modaraba | Funded facility | ||
| Meezan Bank Limited | Bank balance | ||
| Dubai Islamic Bank Pakistan Limited | Bank balance | ||
| Al Barakah Bank Limited | Bank balance | ||
| Bank Alfalah Limited | Bank balance | ||
| 21. | Subsequent Events | ||
| There are no subsequent events to be disclosed. |
- Date of Authorization for Issue
These condensed, interim, un-consolidated financial statements (un-audited) for the halfyear ended December 31, 2025 were approved and authorised for issuance by the Board of Directors of the Company on February 12 , 2026.
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CHIEF EXECUTIVE OFFICER CHIEF FINAN CIA L OFFICER
DIRECTOR
For The Half Year & Quarter Ended December 31, 2025 25
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NETSOL Technologies Limited
26 For The Half Year & Quarter Ended December 31, 2025
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NETSOL Technologies Limited
Condensed Interim Consolidated Financial Statements
For the Half Year & Quarter Ended December 31, 2025
For The Half Year & Quarter Ended December 31, 2025 27
NETSOL Technologies Limited
CONDENSED INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UN-AUDITED) As at December 31, 2025
| NOTE | Dec 31 2025 Unaudited Rupees in |
Jun 30 2025 Audited Thousands |
|---|---|---|
| ASSETS Non Current Assets Property and equipment 5 Long term contract assets Long term loans to employees Current Assets Trade debts 7 Contract assets Loans and advances 8 Deposits and short term prepayments Other receivables Due from related parties 9 Prepaid tax asset Short term investments Cash and bank balances |
||
| 1,331,753 | 1,227,112 143,058 8,590 |
|
| 156,129 | ||
| 7,370 | ||
| 1,495,252 | 1,378,760 | |
| 6,528,907 | 5,869,134 2,542,057 42,111 229,351 127,131 187,791 19,668 200,000 3,767,897 |
|
| 2,748,781 | ||
| 85,151 | ||
| 189,820 | ||
| 152,452 | ||
| 169,787 | ||
| - | ||
| 200,000 | ||
| 3,683,040 | ||
| 13,757,938 | 12,985,140 | |
| Total Assets | 15,253,190 | 14,363,900 |
| EQUITY AND LIABILITIES Share Capital and Reserves Authorized share capital 200,000(June 30,2025: 200,000)ordinaryshares of Rs. 10 each |
2,000,000 | |
| 2,000,000 | ||
| Issued, subscribed and paid up capital 10 Reserves Share deposit money |
898,369 | 898,369 9,922,818 3,868 |
| 10,734,955 | ||
| - | ||
Shareholders’ Equity Non Current Liabilities Long term fnancing 11 Long term advances Current Liabilities Trade and other payables Contract liabilities Short term borrowings 12 Provision for taxation-net Current portion of long term fnancing Unclaimed dividend Contingencies and commitments 13 |
11,633,324 | 10,825,055 |
| 72,161 | 13,343 5,415 |
|
| 12,135 | ||
| 84,296 | 18,758 | |
| 1,157,533 | 1,173,792 153,329 2,180,000 - 8,428 4,538 |
|
| 112,722 | ||
| 2,180,000 | ||
| 25,332 | ||
| 55,445 | ||
| 4,538 | ||
| 3,535,570 | 3,520,087 - |
|
| - | ||
| Total Equity andLiabilities | 15,253,190 | 14,363,900 |
di ted).
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DIRECTOR
CHIEF EXECUTIVE OFFICER CHIEF FINAN CIA L OFFICER
28 For The Half Year & Quarter Ended December 31, 2025
NETSOL Technologies Limited
CONDENSED INTERIM CONSOLIDATED STATEMENT OF PROFIT OR LOSS (UN-AUDITED) For The Half Year & Quarter Ended December 31, 2025
| NOTE | Half year ended December 31 2025 2024 (Un-audited) Rupees in Thousands |
Half year ended December 31 2025 2024 (Un-audited) Rupees in Thousands |
Quarter ended December 31 2025 2024 (Un-audited) Rupees in Thousands |
Quarter ended December 31 2025 2024 (Un-audited) Rupees in Thousands |
|---|---|---|---|---|
| Revenue from contracts with customers - net 14 Cost of revenue |
5,767,506 |
4,209,026 (2,675,375) |
3,224,881 |
2,283,128 (1,361,452) |
| (3,217,728) | (1,653,877) | |||
| Gross proft Selling and promotional expenses Administrative expenses |
2,549,778 | 1,533,651 | 1,571,004 | 921,676 |
| (617,474) | (430,337) | (321,167) | (223,847) (380,398) |
|
| (936,976) | (760,190) | (476,898) | ||
| (1,554,450) | (1,190,527) | (798,065) | (604,245) | |
| Operating proft Other operating expenses Finance cost Other income 15 |
995,328 | 343,124 | 772,939 | 317,431 |
| (213,197) | (351,517) | (92,896) | (387,863) (61,059) 142,249 |
|
| (94,763) | (129,967) | (47,723) | ||
| 153,943 | 351,106 | 97,249 | ||
| (154,017) | (130,378) | (43,370) | (306,673) | |
| Proft before Final Taxes and Income Tax Final tax/levies 16 |
841,311 | 212,746 (148,604) |
729,569 | 10,758 (87,911) |
| (123,032) | (86,024) | |||
| Proft/(loss) before Income Tax Income tax |
718,279 | 64,142 - |
643,545 | (77,153) - |
| - | - | |||
| Net Proft/(loss)for the Period | 718,279 | 64,142 | 643,545 | (77,153) |
Earnings/(loss) Per Share - Basic and Diluted 17 - Basic |
0.73 | (0.88) | ||
| 8.35 | 7.44 | |||
| - Diluted | 8.26 | 0.72 | 7.38 | (0.87) |
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DIRECTOR
CHIEF EXECUTIVE OFFICER CHIEF FINAN CIA L OFFICER
For The Half Year & Quarter Ended December 31, 2025 29
NETSOL Technologies Limited
CONDENSED INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)
For The Half Year & Quarter Ended December 31, 2025
| Half year ended December 31 2025 2024 (Un-audited) Rupees in Thousands |
Half year ended December 31 2025 2024 (Un-audited) Rupees in Thousands |
Quarter ended December 31 2025 2024 (Un-audited) Rupees in Thousands |
Quarter ended December 31 2025 2024 (Un-audited) Rupees in Thousands |
|
|---|---|---|---|---|
| Net Proft/(Loss) for the Period Other Comprehensive Income for the period Items that may be re-classifed subsequently to proft or loss - Exchange differences on translation of foreign operation Items that will not be re-classifed subsequently to pro ft or loss |
718,279 | 64,142 | 643,545 | (77,153) |
| - | - | - | - (12) - |
|
| (10,940) | (11) | (8,508) | ||
| - | - | - | ||
| (10,940) | (11) | (8,508) | (12) | |
| Total Comprehensive Income/(loss) for the Period |
707,339 | 64,131 | 635,037 | (77,165) |
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DIRECTOR
CHIEF EXECUTIVE OFFICER CHIEF FINAN CIA L OFFICER
30 For The Half Year & Quarter Ended December 31, 2025
NETSOL Technologies Limited
CONDENSED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UN-AUDITED) For The Half Year Ended December 31, 2025
| Particulars | Share Capital |
Reserves | Reserves | Reserves | Reserves | Reserves | Total Reserves |
Share Deposit Money |
Total Equity |
|---|---|---|---|---|---|---|---|---|---|
| Capital Reserve | Revenue Reserve |
||||||||
| Share Premi- um |
Employee share option compen- sation reserve |
Treasury Share Reserve |
Foreign Cur- rency Trans- lation Reserve |
Unappro- priated Proft |
|||||
| Rupees in Thousands | |||||||||
| Balance as at June 30, 2024 Net proft for the period Other comprehensive loss for the period Total comprehensive income for the period Transactions with owners of the equity Dividend paid Employee share option reserve |
898,369 | 304,167 265,445 (184,739) 544 8,822,648 9,208,065 13 10,106,447 |
|||||||
| - - |
- - |
- - |
- - |
- ( 1 1 ) |
64,142 - |
64,142 ( 1 1 ) |
- |
64,142 ( 1 1 ) |
|
| - - - |
- - - (11) 64,142 64,131 - 64,131 - - - - (263,511) (263,511) - (263,511) - 4,349 - - - 4,349 - 4,349 |
||||||||
| Balance as at December 31, 2024 | 898,369 | 304,167 269,794 (184,739) 533 8,623,279 9,013,034 13 9,911,416 |
|||||||
| Balance as at June 30, 2025 Net proft for the period Other comprehensive loss for the period Total comprehensive income for the period Transactions with owners of the equity Re-issue of treasury shares against stock options to employees Share deposit moneyreceived - net |
898,369 | 304,167 269,795 (604,727) 9,181 9,944,402 9,922,818 3,86810,825,055 |
|||||||
| - | - | - | - | - | 718,279 | 718,279 |
- |
718,279 |
|
| - | - | - | - | (10,940) | - | (10,940) | - | (10,940) | |
| - - - |
- - - (10,940) 718,279 707,339 - 707,339 390 (19,953) 124,361 - - 104,798 (104,798) - - - - - - - 100,930 100,930 |
||||||||
| Balance as at December 31, 2025 | 898,369 | 304,557 249,842 (480,366) (1,759) 10,662,681 10,734,955 - 11,633,324 |
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DIRECTOR
CHIEF EXECUTIVE OFFICER CHIEF FINAN CIA L OFFICER
For The Half Year & Quarter Ended December 31, 2025 31
NETSOL Technologies Limited
CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS (UN-AUDITED)
For The Half Year Ended December 31, 2025
| For The Half Year Ended December 31, 2025 | ||
|---|---|---|
| Rupees in Thousands Dec 31 Dec 31 2025 2024 (Un-audited) |
||
| Proft before fnal taxes and income tax Adjustments for: - Depreciation - own assets - Depreciation of right of use assets - Gain on disposal of property and equipment - Foreign exchange loss - net - Finance cost - Interest income - Effect of discounting of long term contract assets - Employee share option compensation expense - Provision for expected credit losses |
212,746 |
|
| 841,311 | ||
| 131,246 | 154,225 607 (76) 107,343 127,007 (350,580) - 4,349 56,286 |
|
| 2,801 | ||
| (21,969) | ||
53,604 |
||
| 91,245 | ||
| (128,111) | ||
(3,413) |
||
- |
||
| 29,130 | ||
| 154,533 | 99,161 | |
| Operating proft before working capital changes Decrease / (Increase) in current assets - Trade debts - Contract assets - Loans and advances - Deposits and short term prepayments - Other receivables - Due from related parties (Decrease) / Increase in current liabilities - Trade and other payables - Contract liabilities Cash (Used in) Operations Levy / fnal tax paid Finance cost Dividend paid |
995,844 | 311,907 |
| (635,732) | 476,418 34,139 61,869 (115,200) (88,788) 151,903 204,464 (1,329,884) |
|
(319,240) |
||
(41,820) |
||
39,531 |
||
| (11,862) | ||
18,004 |
||
| (369) | ||
| (40,305) | ||
(991,793) |
(605,079) |
|
(78,409) |
(168,109) (132,221) (262,712) |
|
(111,356) |
||
| - | ||
| (189,765) | (563,042) |
|
| Net cash used in Operating Activities CASH FLOWS FROM INVESTING ACTIVITIES |
(185,714) | (856,214) |
| Payment for acquisition of property and equipment Proceeds from disposal of property and equipment Short term investments Advance against capital expenditure Interest received |
(205,586) | (123,174) 76 (200,000) (40,544) 350,580 |
21,990 |
||
| - | ||
| (33,121) | ||
| 114,652 | ||
| Net Cash used in Investing Activities CASH FLOWS FROM FINANCING ACTIVITIES |
(102,065) | (13,062) |
| Share deposit money Repayment of lease liabilities Received against lease liabilities Long term fnancing obtained Repayment of long term fnancing Short term borrowing - net Longterm advances - net |
100,930 | - (1,017) - - (7,016) 600,000 1,710 |
| (19,738) | ||
38,888 |
||
| 98,161 | ||
| (11,476) | ||
- |
||
| 6,720 | ||
| Net Cashgenerated from FinancingActivities | 213,485 | 593,677 |
| Net decrease in Cash and Cash Equivalents Net foreign exchange difference Cash and cash equivalents at the beginningof theperiod |
(74,294) | (275,599) (11) 4,669,162 |
(10,563) |
||
3,767,897 |
||
| Cash and Cash Equivalents at the End of the Period | 3,683,040 | 4,393,552 |
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DIRECTOR
CHIEF EXECUTIVE OFFICER CHIEF FINAN CIA L OFFICER
32 For The Half Year & Quarter Ended December 31, 2025
NETSOL Technologies Limited
NOTES TO AND FORMING PART OF THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UN-AUDITED)
For The Half Year Ended December 31, 2025
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 | |
|---|---|---|
| 1 |
NetSol IT Village,(Software Technology Park) Lahore Ring Road, Ghazi Road Interchange, Lahore Cantt. Pakistan. |
Registered offce and business unit |
| 2 | 43/1/Q, Amna Villa 1, Block-6, PECHS Karachi, Pakistan. | Branch offce |
| 3 | House No. 4, Safari Villas 1, Bahria Town, Rawalpindi, Pakistan. | Branch offce |
| 4 | Offce # 6, 4th Floor Clover Bay, Unit 407-412 Business Bay Dubai. UAE. | Subsidiary Offce |
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.
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.
For The Half Year & Quarter Ended December 31, 2025 33
NETSOL Technologies Limited
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.
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.
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.
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 fnancial 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 fnancial statements of the Company for the year ended June 30, 2025. |
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 fnancial 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 fnancial statements of the Company for the year ended June 30, 2025. |
|---|---|
| 5. Property and Equipment Dec 31 Jun 30 2025 2025 |
|
| NOTE (Un-audited) (Audited) Rupees in Thousands Operating fxed assets 5.1 1,209,013 1,173,580 Right of use assets 5.2 36,087 - Advance against capital expenditure 5.3 86,653 53,532 1,331,753 1,227,112 5.1. Operating fxed assets Opening written down value 1,173,580 1,213,944 Additions during the period / year 5.1.1 166,698 279,610 Disposals duringtheperiod/ year (21) (3,266) |
|
| 1,331,753 | 1,227,112 |
| 5.1. Operating fxed assets Opening written down value 1,173,580 Additions during the period / year 5.1.1 166,698 Disposals duringtheperiod/ year (21) |
1,213,944 279,610 (3,266) |
| 1,340,257 Depreciation charge for theperiod/ year (131,244) |
1,490,288 (316,708) |
| 1,209,013 | 1,173,580 |
34 For The Half Year & Quarter Ended December 31, 2025
NETSOL Technologies Limited
| Dec 31 Jun 30 2025 2025 |
Dec 31 Jun 30 2025 2025 |
|---|---|
| NOTE (Un-audited) (Audited) Rupees in Thousands 5.1.1 Following is the detail of additions / transfers during the period: At cost Furniture and fxtures 6,538 4,223 Vehicles 114,648 24,794 Offce equipment 4,616 15,514 Computer equipment and installations 39,505 126,112 Air conditioners 1,111 3,848 Generators 280 - Computer softwares - 105,119 |
|
| 166,698 | 279,610 |
| 5.2 Right of use assets Opening written down value - Additions during the period / year 38,888 Disposals duringtheperiod/ year - |
4,104 - (3,497) |
| 38,888 Depreciation charge for theperiod/ year (2,801) |
607 (607) |
| 36,087 | - |
5.3 This primarily represents the advance paid for the solar system to be installed at the Company’s premises.
6. Intangible Assets
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.
7. Trade Debts
Related Parties
| 7. Trade Debts Related Parties |
||
|---|---|---|
| Considered good - unsecured Considered doubtful - unsecured Other Parties Considered good - unsecured Considered doubtful - unsecured Less: Provision for expected credit losses |
5,408,754 | 5,036,394 225,827 |
| 174,376 | ||
| 5,583,130 | 5,262,221 | |
| 1,120,153 | 832,740 102,054 |
|
| 102,628 | ||
| 1,222,781 | 934,794 (327,881) |
|
| (277,004) | ||
| 6,528,907 | 5,869,134 | |
| 7.1 Amount receivable from related parties included in trade debts (from exports) are as under: NetSol Technologies (Thailand) Limited 53,974 - NetSol Technologies (Beijing) Co., Ltd. 3,473,981 3,013,655 NetSol Technologies Australia Pty Limited 392,443 425,819 NetSol Technologies Americas Inc. 675,863 796,046 NetSol Technologies Europe Limited 63,342 33,803 Ascent Europe Limited 923,527 992,898 5,583,130 5,262,221 |
||
| 5,583,130 | 5,262,221 |
For The Half Year & Quarter Ended December 31, 2025 35
NETSOL Technologies Limited
| Dec 31 Jun 30 2025 2025 |
Dec 31 Jun 30 2025 2025 |
|---|---|
| 8. Loans and Advances Considered good - unsecured Current portion of loans to executives 12,982 15,287 Advances to employees: - against salaries 765 1,439 -against expenses 71,404 25,385 85,151 42,111 8.1These advances are given to meet business expenses and are settled as and when the expenses are incurred. 9. Due from Related Party Considered good - unsecured Associates 9.1 NetSol Technologies Americas Inc. 41,222 54,595 NetSol Connect (Private) Limited 14,642 17,455 NetSol Technologies (Beijing) Co., Ltd. 113,923 115,741 169,787 187,791 NOTE (Un-audited) (Audited) Rupees in Thousands |
|
85,151 |
42,111 |
| 8.1These advances are given to meet business expenses and are settled as expenses are incurred. 9. Due from Related Party Considered good - unsecured Associates 9.1 NetSol Technologies Americas Inc. 41,222 NetSol Connect (Private) Limited 14,642 NetSol Technologies (Beijing) Co., Ltd. 113,923 |
and when the 54,595 17,455 115,741 |
169,787 |
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.
- Issued, Subscribed and Paid up Capital
| 10. Issued, Subscribed and Paid up Capital 9.2 Balances with related parties are maintained on a running account basis; analysis of amounts due from related parties is not practically possible. |
10. Issued, Subscribed and Paid up Capital 9.2 Balances with related parties are maintained on a running account basis; analysis of amounts due from related parties is not practically possible. |
therefore, age |
|---|---|---|
| Dec 31 2025 Jun 30 2025 Dec 31 2025 (Un-audited) (Audited) (Un-audited) Number of shares in Thousands Rupees in 42,686 42,686 Ordinary shares of Rs. 10 each fully paid in cash 426,862 47,151 47,151 Ordinary shares of Rs. 10 each allotted as fully paid bonus shares 471,507 89,837 89,837 898,369 |
Jun 30 2025 (Audited) Thousands 426,862 471,507 898,369 |
|
| 89,837 | 89,837 898,369 |
|
| 10.1 Number of shares outstanding as at the reporting date: Opening balance 89,837 Treasury shares of Rs. 10 each purchased at market value (4,690) Re-issue of treasuryshares against stock options to employees 1,346 |
89,837 (4,690) - 85,147 |
|
| Closingbalance 86,493 |
10.2 NetSol Technologies Inc. 16000 Ventura Boulevard STE 770 ENCINO CA 91436, USA is the parent company, holding 68.67% (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 3.34 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, 1.35 million treasury shares are disposed off agaisnt employee stock options scheme.
10.4 There are 1.65 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, 1.35 million shares (June 30, 2025: Nil) were issued against options exercised by the eligible employees.
36 For The Half Year & Quarter Ended December 31, 2025
NETSOL Technologies Limited
| Dec 31 Jun 30 |
||
|---|---|---|
| 2025 2025 |
||
| NOTE (Un-audited) (Audited) |
||
| Rupees in Thousands | ||
| 11. | Long | Term Finances - secured |
| Loan obligation 11.1 108,456 21,771 |
||
| Less: Current portion of longterm fnancing (36,295) (8,428) 72,161 13,343 |
||
| 11.1 | This represents fnance 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 11.92% to 12.40% (June 30, 2025: 12.27% to 21.49%) per annum. These facilities are secured through lien marking in favour of fnancial institutions. |
12. Short Term Borrowings
institutions. 12. Short Term Borrowings |
|
|---|---|
| Askari Bank Limited - ERF - II 500,000 Samba Bank Limited - ERF - II 380,000 Habib Metropolitan Bank Limited - Istisna / Al Bai - Islamic Banking 1,300,000 |
500,000 380,000 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.
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.
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 the following; On January 10, 2025, the Company filed a writ petition before the Islamabad High Court challenging the vires of Section 4C of the Income Tax Ordinance, 2001. The petition was admitted and a stay order was granted. Subsequently, the Inland Revenue Department filed an Intra-Court Appeal (ICA) before the Division Bench of the Islamabad High Court, which was later transferred to the Supreme Court of Pakistan, now to the Federal Constitutional Court of Pakistan pursuant to an order of the Constitutional Bench.
Subsequent to the reporting date, the Federal Constitutional Court of Pakistan decided the matter in favour of the Federal Board of Revenue (FBR), holding that the levy of Super Tax under Section 4C of the Income Tax Ordinance, 2001 is constitutionally valid and applicable from tax year 2022 onwards.
The management has evaluated the applicability of Super Tax to the Company and is of the view that the Company’s income is covered under the final tax regime in accordance with Section 154 of the Income Tax Ordinance, 2001 and therefore, does not fall within the scope of Section 4C. However, the detailed order of the Court is awaited and subject to the contents and implications thereof, if the decision adversely affects the Company’s position, the Company intends to file a review petition against the aforesaid decision after consultation with its legal counsel.
Based on the current status of the matter and management’s assessment, supported by the opinion of the tax consultant, no provision has been recognized in these financial statements.
For The Half Year & Quarter Ended December 31, 2025 37
NETSOL Technologies Limited
13.2 Commitments
-
(i) Bank guarantees have been issued amounting to Rs. 339.27 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.55.41 million as at December 31, 2025 (June 30, 2025: Rs. 73.90 million).
Half Year ended Quarter ended December 31 December 31 2025 2024 2025 2024 (Un-audited) (Un-audited) Rupees in Thousands Rupees in Thousands
14. Revenue from Contracts with Customers - Net
Disaggregation of revenue from contract with customers
Set out below is the disaggregation of the Company’s revenue from contracts with customers:
Export Revenue
| Export Revenue | ||||
|---|---|---|---|---|
- Services - Subscription and Support Local Revenue - Services - Subscription and Support - Less: Sales tax |
3,168,248 | 1,496,607 | 2,134,477 | 827,289 1,438,259 |
| 2,579,563 | 2,679,507 | 1,081,031 | ||
| 5,747,811 | 4,176,114 | 3,215,508 | 2,265,548 | |
| 22,847 | 13,220 | 10,873 | 6,117 12,553 (1,090) |
|
| - | 21,946 | - | ||
| (3,152) | (2,254) | (1,500) | ||
| 19,695 | 32,912 | 9,373 | 17,580 | |
| 5,767,506 | 4,209,026 | 3,224,881 | 2,283,128 |
14.1 Revenue has been recognized over time for both local and export sales during the period.
| 15. Other Income Income from fnancial assets Proft on bank deposits Proft on short term investments Income from non-fnancial assets Gain on foreign currency translation Gain on disposal of property and equipment Rental income Effect of discounting of long term contract assets |
||||
|---|---|---|---|---|
| 69,844 | 74,324 | 55,644 | 13,791 128,157 |
|
| 58,267 | 276,256 | - | ||
| 128,111 | 350,580 | 55,644 | 141,948 | |
| - | - | 22,513 | - 76 225 - |
|
| 21,969 | 76 | 17,165 | ||
| 450 | 450 | 225 | ||
| 3,413 | - | 1,702 | ||
| 25,832 | 526 | 41,605 | 301 | |
| 153,943 | 351,106 | 97,249 | 142,249 |
- 15.1 Profit is earned under both conventional mark-up arrangement and Shariah compliant arrangement. It includes Rs. 98.32 million profit earned on Shariah compliant bank deposits & investments.
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.
38 For The Half Year & Quarter Ended December 31, 2025
NETSOL Technologies Limited
17. Earnings Per Share - Basic and Diluted
| 17. | Earnings Per Share - Basic and Diluted | Earnings Per Share - Basic and Diluted |
|---|---|---|
| Half Year ended December 31, Quarter ended December 31, 2025 2024 2025 2024 (Un-audited) (Un-audited) Rupees in Thousands Rupees in Thousands |
||
| Proft/(loss) attributable to ordinary shareholders 718,279 |
64,142 643,545 (77,153) |
|
| Weighted average number of ordinary shares (Basic) Issued ordinary shares at beginning of the period 85,147 Less: weighted average number of treasury shares held by the Company 823 |
89,837 85,425 89,837 (2,000) 1,054 (2,000) |
|
Weighted average number of ordinary shares as at December 31, 85,970 |
87,837 86,479 87,837 |
|
| Earnings/(loss) per share - basic 8.35 |
0.73 7.44 (0.88) |
|
| Weighted average number of ordinary shares (Diluted) Weighted average number of ordinary shares (Basic) 85,970 Effect of share options 980 |
87,837 86,479 87,837 1,280 710 1,314 |
|
| Weighted average number of ordinary shares(diluted) 86,950 |
89,117 87,189 89,151 |
|
| Earnings/(loss) per share - diluted 8.26 |
0.72 7.38 (0.87) |
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:
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 signifcant transactions with related parties other than those disclosed elsewhere in these condensed, interim, consolidated fnancial statements (un-audited) are as follows: |
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 signifcant transactions with related parties other than those disclosed elsewhere in these condensed, interim, consolidated fnancial statements (un-audited) are as follows: |
|---|---|
| Half Year ended December 31 2025 2024 (Un-audited) Rupees in Thousands |
|
| Relationship with the Company Nature of Transactions Associated undertaking Rental charges 450 Provision of services 2,243,554 Purchase of services 25,505 |
450 1,719,854 23,508 |
| Parent Dividend - |
178,190 |
| Key management personnel Salaries and benefts 208,875 Retirement benefts 8,577 Commissionpaid 23,876 |
185,272 7,631 7,834 |
| Post employment beneft Contribution to defned contributionplan 117,075 |
98,881 |
For The Half Year & Quarter Ended December 31, 2025 39
NETSOL Technologies Limited
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.
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.
21. Shariah Screening Disclosures by Company Listed on Islamic Index
fnancial risk management information and disclosures required in the annual fnancial statements. (ii) Fair Value of Financial Assets and Liabilities The carrying values of all fnancial assets and liabilities refected in this condensed, interim, consolidated fnancial statements (un-audited) approximate to their fair values. 21. Shariah Screening Disclosures by Company Listed on Islamic Index |
fnancial risk management information and disclosures required in the annual fnancial statements. (ii) Fair Value of Financial Assets and Liabilities The carrying values of all fnancial assets and liabilities refected in this condensed, interim, consolidated fnancial statements (un-audited) approximate to their fair values. 21. Shariah Screening Disclosures by Company Listed on Islamic Index |
|---|---|
| NOTE Dec 31 2025 Jun 30 2025 (Un-audited) (Audited) Rupees in Thousands |
|
| Financing obtained as per Islamic mode 12 1,408,456 1,321,771 Shariah compliant bank deposits/bank balances 2,375,840 2,166,070 Half year ended December 31 2025 2024 |
|
| Revenue earned from a Shariah compliant business segment 14 5,767,506 Proft earned from Shariah compliant bank deposits/ bank balances 15 98,310 Proft paid on Islamic mode of fnancing 55,920 Interest/markup accrued on any conventional loan or advance 35,330 Source and detailed breakup of other income, including breakup of other o portions of other income into Shariah-compliant and non compliant income: i) Gain on sale of operating fxed assets 21,969 ii) Rental income 450 |
4,209,026 308,300 62,570 65,670 r miscellaneous 76 450 |
21.1 Relationship with Shariah-compliant banks
| Name | Relationship |
|---|---|
| Habib Metropolitan Bank Limited | Funded / Non-funded facility & Bank Balance |
| First Habib Modaraba | Funded facility |
| Meezan Bank Limited | Bank balance |
| Dubai Islamic Bank Pakistan Limited | Bank balance |
| Al Barakah Bank Limited | Bank balance |
| Bank Alfalah Limited | Bank balance |
40 For The Half Year & Quarter Ended December 31, 2025
NETSOL Technologies Limited
22. Segment Revenues and Results
Following is an analysis of the Group’s revenue and results by reportable segment.
| Dec-25 | |
|---|---|
| PBS PS BPO Total |
|
| Rupees in Thousands | |
| Revenue - net External sales Services Subscription and Support |
2,710,133 24,531 40,055 2,774,719 2,992,787 - - 2,992,787 |
| Total revenue Cost of revenue |
5,702,920 24,531 40,055 5,767,506 (3,050,504) (137,462) (29,762) (3,217,728) |
| Segment results Unallocated corporate expenses: Selling and promotional expenses Administrative expenses Other income Other operating expenses Finance cost Final tax/levies |
2,652,416 (112,931) 10,293 2,549,778 (617,474) (936,976) 153,943 (213,197) (94,763) (123,032) |
| Proft after taxation | 718,279 |
| Dec-24 | |
| PBS PS BPO Total |
|
| Rupees in Thousands | |
| Revenue - net External sales Services Subscription and Support |
1,401,183 66,400 40,420 1,508,003 2,701,023 - - 2,701,023 |
| Total revenue Cost of revenue |
4,102,206 66,400 40,420 4,209,026 (2,532,966) (107,585) (34,824) (2,675,375) |
| Segment results Unallocated corporate expenses: Selling and promotional expenses Administrative expenses Other income Other operating expenses Finance cost Final tax/levies |
1,569,240 (41,185) 5,596 1,533,651 (430,337) (760,190) 351,106 (351,517) (129,967) (148,604) |
| Proft after taxation | 64,142 |
For The Half Year & Quarter Ended December 31, 2025 41
NETSOL Technologies Limited
*Key
PBS = Product Based Solutions and Ancillary PS = Professional Services Services
BPO = Business Process Outsourcing
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.
23. Subsequent Events
There are no subsequent events to be disclosed.
24. Date of Authorization for Issue
These condensed, interim, consolidated financial statements (un-audited) for the period ended December 31, 2025 were approved and authorised for issuance by the Board of Directors on February 12, 2026.
25. Figures
Figures have been rounded off to the nearest thousand of rupees unless otherwise stated.
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DIRECTOR 42 For The Half Year & Quarter Ended December 31, 2025
CHIEF EXECUTIVE OFFICER CHIEF FINAN CIA L OFFICER
NETSOL Technologies Limited
For The Half Year & Quarter Ended December 31, 2025 43