Karachi: NETS International Communication Limited has released its annual report for the financial year ending June 30, 2026, detailing a period marked by both economic challenges and sectoral growth. According to the report, the company's net sales increased by 17.09% to PKR 1.947 billion, a notable rise from the previous year's PKR 1.663 billion. The financial performance was driven by a 31.6% growth in gross profit, reaching PKR 541.6 million, and an improvement in gross margin from 24.7% to 27.8%. This reflects a strategic focus on higher-value projects and services.
The annual report was presented in accordance with Section 227 of the Companies Act, 2017, and the Listed Companies (Code of Corporate Governance) Regulations, 2019. It will be formally discussed at the company's 4th Annual General Meeting on October 28, 2026.
The broader economic context for the year was characterized by a GDP growth of 3.7% in Pakistan, bolstered by the services and industrial sectors, despite challenges such as rising global energy prices and disrupted supply chains in the latter half of the year. Inflation surged to 11.1% by June 2026, prompting the State Bank of Pakistan to increase the monetary policy rate to 11.5%.
Within the telecommunications sector, a significant development was the Pakistan Telecommunication Authority's spectrum auction in March 2026, which assigned 480 MHz of spectrum to major operators including Jazz, Zong, and Ufone. This move, raising approximately USD 507 million, expanded the total spectrum available to mobile operators from 274 MHz to 754 MHz and abolished Right-of-Way charges for fiber deployment. These changes align with NETS International's core expertise, potentially fostering further investments in network modernization.
Despite these advancements, the company's profit from operations decreased from PKR 130 million to PKR 68 million, primarily due to a PKR 145 million loss from stock damage in a fire at Gerry's Dnata warehouse. However, an insurance claim of PKR 80 million partially offset this loss, contributing to a 10.2% increase in profit before tax, which amounted to PKR 128 million.
Following a taxation charge of PKR 88.7 million, NETS International's profit after tax stood at PKR 41.7 million, down from PKR 63.2 million in the previous year. Earnings per share were reported at Rs. 1.14, compared to Rs. 1.88 in 2025.
This year marked NETS International's first complete financial year as a listed entity on the GEM Board of the Pakistan Stock Exchange. According to information available from the Pakistan Stock Exchange (PSX), the company has taken strategic steps to bolster its market position, including a partnership with Pligence Inc. USA, enhancing its offerings in AI-driven cybersecurity and enterprise mobility solutions.
Furthermore, NETS Pakistan achieved recognition as a Huawei Silver Partner at the Huawei Pakistan Partner Summit in Islamabad, underscoring its commitment to strategic partnerships and technological advancement.
The company continues to emphasize human resources development, with an ongoing internship program to train engineers and technical professionals in key technologies such as fiber, mobile, cloud, and cybersecurity, supporting both company operations and Pakistan's digital infrastructure expansion.
The financial statements have been prepared in compliance with International Financial Reporting Standards as issued by the International Accounting Standards Board, ensuring adherence to accounting and reporting standards applicable in Pakistan.