Itanz Technologies Limited (PSX: ITANZ) was incorporated in Pakistan as a public limited company in 1990. The company was formerly known as Zahur Cotton Mills Limited.
In March 2025, the Lahore High Court approved the merger of the company and ITANZ Technology Private Limited (ITPL) with effect from October 01, 2023.
After the merger, the company’s principal business activity included software development, installation and implementation as well as other IT related supplies and services. The company also provides consultancy services in the field of IT.
Pattern of Shareholding
As of June 30, 2025, ITANZ has a total of 9.86 million shares outstanding which are held by 6129 shareholders. Local general public has the majority stake of 91.88 percent in the company followed by NIT & ICP holding 6.46 percent shares.
Around 1.52 percent of ITANZ shares are collectively held by Banks, DFIs, NBFIs, Insurance companies, Takaful, Modarabas and Pension Funds.
As per the scheme of arrangement for merger, the company was required to issue 97,961,500 ordinary shares to the shareholders of ITPL which will increase its paid-up share capital from 9.86 million shares to 107.82 million shares.
The company successfully implemented the scheme of arrangement during the first quarter of FY26.
Historical Performance (2025)
in 2025, ITANZ recorded 30.28 percent year-on-year increase in its net sales which clocked in at Rs.441.52 million. This came on the back of 37.19 percent stronger export sales to the tune of Rs.411.093 million recorded in 2025. Conversely, local sales ticked down by 22.49 percent to clock in at Rs.30.428 million in 2025.
In 2025, export sales accounted for 93.11 percent of the total sales mix of ITANZ versus its share of 88.42 percent recorded in the previous year. Outsourcing service (which included IT services and business process outsourcing) was the main revenue driver for ITANZ in both the years of its operations. It was followed by revenue from software development and implementation and software licensing.
Cost of sales grew by 9.37 percent in 2025 on the back of higher subscription charges and IT consulting services secured from external professionals.
However, disciplined cost control and focus on high-margin export orders resulted in 43.39 percent improvement in gross profit in 2025 with GP margin clocking in at 67.65 percent versus GP margin of 61.47 percent recorded in 2024.
Administrative expense surged by 29.18 percent in 2025 mainly on the back of higher fee & subscription charges as well as legal & professional charges incurred during the year on account of the merger arrangement.
Payroll expense incurred in 2025 was less than half of what it was in the previous year. This was due to streamlining of workforce from 48 employees in 2024 to 21 employees in 2025. ITANZ also recorded other expense of Rs.0.30 million in 2025 versus no other expense posted in the previous year.
This was mainly due to loss incurred on the disposal of property & equipment in 2025.
Unlike 2024, the company also recorded impairment allowance worth Rs.15.53 million for ECL in 2025. Other income rebounded by a phenomenal 1639.60 percent to clock in at Rs.50.50 million in 2025 due to payables written back as well as a tremendous rise in foreign exchange gain. This resulted in 64.59 percent stronger operating profit in 2025 with OP margin clocking in at 63.71 percent versus OP margin of 50.43 percent recorded in 2024.
Finance cost surged by 24.71 percent in 2025. This was due to an increase in short-term borrowings.
ITANZ recorded net profit of Rs.344.837 million in 2025, up 117.81 percent year-on-year. This translated into EPS of Rs.34.97 in 2025 versus EPS of Rs.16.06 recorded in 2024. NP margin also strengthened from 46.72 percent in 2024 to 78.10 percent in 2025.
Recent Performance (1QFY26)
During the first quarter of the ongoing fiscal year, ITANZ registered 51.77 percent improvement in its topline which clocked in at Rs.89.73 million. This came on the back of enrichment of both local and export business.
During 1QFY25, the company’s operations were only limited to exports, however, in 1QFY26, the company secured a major local contract worth Rs.33.238 million. By implementing effective cost control measures, the company was able to cut down its direct cost by 27.34 percent in 1QFY26. This resulted in 88 percent enhancement in its gross profit in 1QFY26 with GP margin clocking in at 84.96 percent versus GP margin of 68.59 percent recorded in 1QFY25.
ITANZ was able to cut down its administrative expense by 6.16 percent in 1QFY26. This appears to be due to high-base effect as the company paid higher legal & professional charges as well as fee & subscription charges related to the merger agreement in the previous year. Other income of Rs.0.25 million recorded in 1QFY26 is apparently due to exchange gain.
The company recorded no other income in 1QFY25. Operating profit jumped up by 117.13 percent in 1QFY26 with OP margin clocking in at 75.43 percent versus OP margin of 52.72 percent recorded in 1QFY25. Finance cost spiked by 56.43 percent in 1QFY26 despite monetary easing and a decline in outstanding borrowings. It can be assumed that the company paid off its non-interest bearing loans during the period.
Net profit picked up by 113.31 percent to clock in at Rs.58.799 million in 1QFY26. This translated into EPS of Rs.0.55 in 1QFY26 versus EPS of Rs.0.26 recorded in 1QFY25. NP margin progressed from 46.62 percent in 1QFY25 to 65.53 percent in 1QFY26.
Future Outlook
The company plans to offer customized software solutions for clients in both local and export markets. The company also intends to increase its footprint in other geographical locations to expand its customer base.
Besides, the company is determined to target new industry verticals by investing in advanced technologies such as AI applications, data analytics and automation platforms in order to enhance its global competitiveness and diversify its sales mix.
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