Nets International Communication Limited (PSX: GEMNETS) has reported significant growth in revenue and operational expansion, reflecting the company’s strategic initiatives and market positioning in Pakistan’s telecommunications and IT solutions sector. Incorporated in 2022 as a private limited company, GEMNETS transitioned to a public limited company and was listed on the GEMS board of the Pakistan Stock Exchange in 2025. The company provides telecommunication, IT solutions, and allied services domestically and in international markets.
As of June 30, 2025, GEMNETS had 36.758 million shares held by 193 shareholders, with directors, the CEO, their spouses, and minor children holding a majority stake of 90 percent, while the remaining 10 percent were held by the general public.
The company’s 2025 performance showed a remarkable rebound in net revenue, which surged 887.80 percent to Rs.1,662.64 million, largely fueled by strong local sales and the recognition of export revenue for the first time. This growth was supported by GEMNETS’s merger in the previous year and its PSX listing, which enhanced market visibility and liquidity. Cost of revenue increased by 1,856.19 percent due to expanded operations, while gross profit strengthened by 294.24 percent with a margin of 24.74 percent compared to 62 percent in 2024. Administrative expenses rose by 141.73 percent due to workforce expansion from 201 to 267 employees, alongside newly incurred selling and distribution costs totaling Rs.69.02 million. Other expenses rose 2,425.14 percent due to expected credit loss provisions, while other income declined by 78.13 percent. GEMNETS recorded a net profit of Rs.63.268 million in 2025, up 112.56 percent year-on-year, translating into an EPS of Rs.1.88 versus Rs.3.44 in 2024. Net profit margin fell to 3.81 percent from 17.68 percent the prior year.
During the first half of FY26, GEMNETS continued its growth trajectory, posting a 34.82 percent increase in net revenue to Rs.1,020.89 million, with local sales remaining the primary contributor. Cost of revenue grew by 40.59 percent, resulting in a gross margin of 20.97 percent. Administrative expenses climbed 30.82 percent, while selling expenses rose marginally by 1.26 percent. Other expenses jumped to Rs.150.97 million due to higher provisioning and losses linked to a fire incident at the Gerry’s Dnata warehouse in Lahore, partially offset by a 4,535.29 percent increase in other income from bank profits and insurance recoveries. Operating profit rose 34.24 percent with a margin of 7.78 percent, and net profit increased 82.81 percent to Rs.41.263 million, yielding an EPS of Rs.1.12 and a net margin of 4.04 percent.
Looking ahead, GEMNETS plans to strengthen its market presence through expanded geographical outreach, diversified offerings, and technological advancements. Key focus areas include cybersecurity solutions, fiber-to-home projects, deeper engagement in banking, education, retail, and enterprise sectors, as well as growth in resource outsourcing targeting leading telecommunication and technology companies. These initiatives position GEMNETS for continued expansion and enhanced competitiveness within Pakistan’s digital infrastructure and IT services ecosystem.
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