October 30, 2025 (MLN):  Supernet Limited (PSX: GEMSPNL) reported a profit after taxation of Rs161.2m for the quarter ended September 30, 2025, up 27% from Rs126.8m in the corresponding quarter last year.

Earning per share increased 18% to Rs1.22 compared to Rs1.03 in 1QFY25.

Net revenue rose 8% year-on-year to Rs1.87bn from Rs1.74bn, demonstrating steady demand during the quarter. Cost of services increased 3% to Rs1.38bn from Rs1.33bn.

Gross profit increased 23% to Rs498.8m against Rs406.1m in 1QFY25, with the gross margin improving to 26.6% from 23.3% in the prior year quarter, indicating enhanced operational efficiency and better cost management.

Administrative and other expenses increased marginally by 1% to Rs173.6m from Rs172.3m, while distribution costs rose 11% to Rs62.7m from Rs56.3m.

Other income declined 74% to Rs1.34m from Rs5.23m last year.

The company recorded an operating profit of Rs258.7m, up 42% from Rs182m in 1QFY25.

Finance costs declined 28% to Rs7.84m from Rs10.91m in the previous year, providing some relief to the bottom line.

Profit before taxation and levy stood at Rs250.9m, up 47% from Rs171.1m in 1QFY25. Levy turned negative at Rs30.7m compared to a positive levy of Rs7.17m in the prior quarter.

Profit before taxation increased 24% to Rs220.2m from Rs178.3m in 1QFY25.

Taxation increased 15% to Rs59m from Rs51.4m in the prior period.

The company concluded 1QFY26 with a net profit of Rs161.2m, delivering a net profit margin of 8.6% compared to 7.3% in 1QFY25.

The profit growth was driven by strong revenue expansion, improved gross margins of 26.6%, and enhanced operating leverage, partially offset by lower other income and higher distribution costs, demonstrating the company's solid execution in Pakistan's telecommunications infrastructure sector.