Nets International Communication Limited (PSX: GEMNETS) was incorporated in Pakistan as a private limited company by shares in 2022. It was converted into a public limited company and got listed on the GEMS board of the Pakistan Stock Exchange in 2025. The company is principally engaged in the business of providing telecommunication, IT solutions and allied services within Pakistan as well as in other geographical markets.
Pattern of Shareholding
As of June 30, 2025, GEMNETS has a total of 36.758 million shares outstanding which are held by 193 shareholders. Directors, CEO, their spouse and minor children have the majority stake of 90 percent in the company followed by general public holding the remaining 10 percent shares.
Historical Performance (2025)
In 2025, GEMNETS’s net revenue rebounded by 887.80 percent to clock in at Rs.1662.64 million. This largely came on the back of a phenomenal rise in the local sales of company. As against the previous year, the company also recognized export sales in 2025.
The tremendous growth in the company’s business was due to its merger completed in the previous year and also because of its listing on the PSX which enhanced its market reach. The IPO conducted by the company also provided it with ample liquidity to expand its operations. Cost of revenue surged by 1856.19 percent in 2025 on account of improved operations. Gross profit strengthened by 294.24 percent in 2025 with GP margin clocking in at 24.74 percent versus GP margin of 62 percent recorded in the previous year.
Administrative expense climbed up by 141.73 percent in 2025 on the back of workforce expansion from 201 employees in 2024 to 267 employees in 2025 which resulted in higher payroll expense. As against last year, the company also incurred selling & distribution expense worth Rs.69.02 million in 2025 which mainly comprised of marketing & promotion expense and salaries of sales force.
Other expense mounted by 2425.14 percent in 2025 predominantly due to ECL. Other income deteriorated by 78.13 percent in 2025 due to a drastic decline in miscellaneous income. GEMNETS recorded 166 percent stronger operating profit in 2025. Conversely, OP margin clocked in at 8.19 percent in 2025 versus 30.40 percent in 2024. Finance cost jumped up by 80.77 percent in 2025 due to external loans obtained during the year.
The company recorded net profit of Rs.63.268 million in 2025, up 112.56 percent year-on-year. This translated into EPS of Rs.1.88 in 2025 versus EPS of Rs.3.44 recorded in the previous year. NP margin fell from 17.68 percent in 2024 to 3.81 percent in 2025.
Recent Performance (1HFY26)
During the first half of the ongoing fiscal year, GEMNETS recorded 34.82 percent enhancement in its net revenue which clocked in at Rs.1020.89 million. Local sales continued to dominate the sales mix of the company in 1HFY26. Cost of revenue mounted by 40.59 percent in 1HFY26 with GP margin clocking in at 20.97 percent versus GP margin of 24.21 percent recorded in 1HFY25.
The expansion of the company’s operations and outreach resulted in 30.82 percent higher administrative expense and 1.26 percent higher selling expense in 1HFY26. Other expense posted a drastic rise from Rs.1.27 million in 1HFY25 to Rs.150.97 million in 1HFY26 apparently due to higher profit related provisioning done during the period. It might also encompass the loss emanating from the fire incident occurred at the Gerry’s Dnata warehouse located at the Lahore Airport which resulted in the destruction of the company’s imported goods.
Other expense was conveniently offset by 4535.29 percent stronger other income recorded during the period which appears to be the result of increased profit on bank deposits and recovery of insurance claim.
Operating profit improved by 34.24 percent in 1HFY26 with OP margin clocking in at 7.78 percent versus OP margin of 7.82 percent recorded in 1HFY25. Despite monetary easing, finance cost mounted by 40.77 percent in 1HFY26 due to increased short-term borrowing obtained during the period to meet working capital requirements.
GEMNETS recorded net profit of Rs.41.263 million in 1HFY26, up 82.81 percent year-on-year. This translated into EPS of Rs.1.12 in 1HFY26 versus EPS of Rs.0.68 posted in 1HFY25. NP margin picked up from 2.98 percent in 1HFY25 to 4.04 percent in 1HFY26.
Future Outlook
Going forward, the company plans to expand its market share by increasing its geographical outreach, diversifying its offerings and undertaking technological advancements. The key focus areas will be cyber security, fiber to home projects, deeper penetration in banking, education, retail and enterprise segments as well as expansion of its resource outsourcing by targeting leading telecommunication and technology companies.
Copyright Business Recorder, 2026
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