Nets International Communication 1HFY26 Profit Up 83% on Revenue Growth
Nets International Communication grew first-half FY26 net profit about 83 percent to roughly Rs41 million as revenue rose around 35 percent, though higher finance costs offset some of the gain.
Nets International Communication kept its growth going into the first half of its 2026 financial year. The telecom and IT solutions company reported net profit of about Rs41.3 million for 1HFY26, up roughly 83 percent year on year, on the back of strong revenue growth. The company listed on the exchange's growth board in 2025, so this is one of its early results as a public company.
What the GEMNETS 1HFY26 results showed
Net profit came in at about Rs41.263 million for the half, up around 82.81 percent from a year earlier, with earnings per share of about Rs1.12 against Rs0.68 in 1HFY25. Net revenue grew about 34.82 percent to roughly Rs1,020.9 million. The net profit margin widened to about 4.04 percent from 2.98 percent. Not everything moved in the company's favour. The cost of revenue rose about 40.59 percent, so the gross margin slipped to around 20.97 percent from 24.21 percent, and finance costs jumped about 40.77 percent because the company took on more short-term borrowing to fund its working capital. The table shows the main figures.
| Measure | 1HFY26 | 1HFY25 |
|---|---|---|
| Net revenue | ~Rs1,020.9m | ~Rs757m |
| Net profit | ~Rs41.3m | ~Rs22.6m |
| EPS | ~Rs1.12 | ~Rs0.68 |
Why it matters for technology and communication stocks
Companies in telecom and IT infrastructure grow by winning more work and scaling revenue, so a roughly 35 percent jump in the top line is a healthy sign of demand for their services. The catch for a smaller, growing firm is funding. Revenue growth often needs more working capital, and Nets International leaned on short-term borrowing to support it, which pushed up finance costs. The gross margin also thinned as costs rose faster than the firm could fully pass through. For the technology and communication group, this is the typical shape of an early-stage growth story: strong revenue and profit gains, paired with rising funding costs that bear watching.
Which stocks, and why
The result is a direct, company-specific positive for Nets International Communication. Profit up about 83 percent on roughly 35 percent revenue growth, with a wider net margin, is a clearly good half for a recently listed firm, so the influence is medium for the company. The longevity is short because the result rests on revenue momentum and working-capital funding that can shift quarter to quarter, and the squeeze on gross margin plus the higher finance costs are the standing concerns to keep in view.
What to watch
The signals to track are whether revenue growth holds up, whether the gross margin recovers or keeps thinning as costs rise, and how heavy the finance costs become as the company funds its expansion. Watch the next results for the balance between top-line growth and the borrowing needed to support it.
Frequently asked questions
How did Nets International Communication perform in 1HFY26?
Net profit rose about 83 percent year on year to roughly Rs41.3 million, with earnings per share of about Rs1.12 against Rs0.68 a year earlier.
What drove the improvement?
Net revenue grew about 35 percent to roughly Rs1,020.9 million, and the net profit margin widened, even as finance costs rose on higher short-term borrowing.
Is this positive for GEMNETS stock?
Strong profit and revenue growth is a positive result for the business. This describes the company's performance, not a forecast for its share price.
Informational only — not investment advice. Sentiment reflects news exposure, not a buy/sell recommendation or price forecast. Do your own research and consult a licensed professional.
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