ISLAMABAD: Pak Datacom Limited reported a sharp decline in profitability for the nine months ended March 31, 2026, as lower revenue and higher operating expenses weighed heavily on the company’s financial performance.

According to the company’s condensed interim financial results, Pak Datacom posted a net profit of Rs12.83 million, representing an 88.4% decline from Rs110.16 million recorded in the corresponding period last year. Earnings per share (EPS) also fell significantly to Rs1.08, compared with Rs9.29 in the same period of the previous year.

The company’s net revenue for the nine-month period declined 16.5% to Rs1.07 billion, down from Rs1.28 billion a year earlier. Meanwhile, the cost of services stood at Rs870.68 million, resulting in a gross profit of Rs195.61 million, substantially lower than the Rs311.30 million reported in the corresponding period last year.

Administrative expenses increased to Rs184.44 million from Rs158.02 million, while marketing expenses rose to Rs46.46 million compared with Rs32.81 million a year ago. Higher operating costs, along with finance costs of Rs16.08 million, significantly reduced the company’s profitability despite recording Rs76.99 million in other income.

Profit before taxation dropped sharply to Rs36.37 million, compared with Rs176.81 million in the same period last year. After accounting for tax expenses of Rs23.54 million, the company reported a net profit of Rs12.83 million.

For the third quarter alone, Pak Datacom earned Rs3.13 million, a steep decline from Rs62.07 million recorded during the same quarter last year, reflecting continued pressure on earnings.

On the financial position front, total assets stood at Rs1.97 billion as of March 31, 2026, compared with Rs2.10 billion at the end of June 2025. Shareholders’ equity decreased to Rs1.43 billion from Rs1.49 billion, primarily due to the payment of the final dividend for FY2025 and lower retained earnings. Cash and bank balances remained strong at approximately Rs500.75 million.

The Board of Directors did not recommend any interim cash dividend, bonus shares, or right shares for the period under review.