NetSol Technologies (KAR:NETSOL) Operating Income: ₨2,661 Mil (TTM As of Mar. 2026)


KAR:NETSOL NetSol Technologies Ltd KAR:NETSOL
77 GF Score
Price ₨134.47
GF Value ₨177.40
Valuation Modestly Undervalued
! 1 Warning Sign
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What is NetSol Technologies Operating Income?

NetSol Technologies KAR:NETSOL 77 Operating Income is ₨2,661 Mil as of Mar. 2026. GuruFocus rates KAR:NETSOL with a GF Score™ of 77/100 and a GF Value™ of ₨177.40 (Modestly Undervalued). The stock has 1 warning sign investors should review.

NetSol Technologies's Operating Income for the three months ended in Mar. 2026 was ₨1,047 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ₨2,661 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. NetSol Technologies's Operating Income for the three months ended in Mar. 2026 was ₨1,047 Mil. NetSol Technologies's Revenue for the three months ended in Mar. 2026 was ₨3,572 Mil. Therefore, NetSol Technologies's Operating Margin % for the quarter that ended in Mar. 2026 was 29.32%.

NetSol Technologies's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. NetSol Technologies's annualized ROC % for the quarter that ended in Mar. 2026 was 30.62%. NetSol Technologies's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 64.89%.

NetSol Technologies  (KAR:NETSOL) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

NetSol Technologies's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=4188.884 * ( 1 - 11.53% )/( (10208.079 + 13994.582)/ 2 )
=3705.9056748/12101.3305
=30.62 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=15253.19 - 1162.071 - ( 3883.04 - max(0, 3535.57 - 13757.938+3883.04))
=10208.079

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=18337.446 - 1085.369 - ( 3257.495 - max(0, 5667.382 - 15924.388+3257.495))
=13994.582

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

NetSol Technologies's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=4458.948/( ( (1331.753 + max(5490.771, 0)) + (1368.596 + max(5551.848, 0)) )/ 2 )
=4458.948/( ( 6822.524 + 6920.444 )/ 2 )
=4458.948/6871.484
=64.89 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(6528.907 + 0 + 261.989) - (1162.071 + 0 + 138.054)
=5490.771

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(8781.325 + 0 + 198.999) - (1085.369 + 0 + 2343.107)
=5551.848

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

NetSol Technologies's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=1047.221/3571.823
=29.32 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

NetSol Technologies Operating Income Related Terms

NetSol Technologies Operating Income Historical Data

* Premium members only.

The historical data trend for NetSol Technologies's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

NetSol Technologies Operating Income Chart

NetSol Technologies Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 341.81 208.68 -536.79 1,472.69 1,072.79

NetSol Technologies Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 129.30 854.52 79.58 680.04 1,047.22
KAR:NETSOL
77GF Score
NetSol Technologies Ltd KAR:NETSOL
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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NetSol Technologies Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was ₨2,661 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of ₨2,661 Mil mean?
NetSol Technologies (KAR:NETSOL) has a Operating Income of ₨2,661 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on NetSol Technologies and its competitors.
Is NetSol Technologies' Operating Income too high?
NetSol Technologies' current Operating Income is ₨2,661 Mil. Overall, NetSol Technologies has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does NetSol Technologies' Operating Income compare to IBM and ACN?
NetSol Technologies' Operating Income of ₨2,661 Mil can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Software company?
A good Operating Income depends on the Software industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on NetSol Technologies and its competitors. NetSol Technologies's current Operating Income is ₨2,661 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NetSol Technologies stock overvalued right now?
Based on GuruFocus' analysis, NetSol Technologies (KAR:NETSOL) is currently considered Modestly Undervalued. The stock's GF Value™ is ₨177.40, compared to a current price of ₨134.47 — trading 24.2% below its estimated fair value. The current Operating Income is ₨2,661 Mil. NetSol Technologies' overall GF Score™ is 77/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For NetSol Technologies (KAR:NETSOL), the current Operating Income is ₨2,661 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is NetSol Technologies (KAR:NETSOL) Overvalued in 2026?

Based on GuruFocus' analysis, NetSol Technologies stock appears to be undervalued. The current stock price of ₨134.47 is trading 24.2% below its estimated GF Value™ of ₨177.40. GuruFocus considers NetSol Technologies to be Modestly Undervalued.

Key valuation signals for KAR:NETSOL:

  • Operating Income: ₨2,661 Mil
  • GF Value™: ₨177.40 vs. price of ₨134.47 (24.2% below fair value)
  • GF Score™: 77/100 with 1 warning sign

No single metric tells the full story. See the KAR:NETSOL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

NetSol Technologies Business Description

Address Lahore Ring Road, Ghazi Road Interchange, NETSOL IT Village (Software Technology Park), Lahore Cantonment, Lahore, PB, PAK, 54792
NetSol Technologies Ltd provides Information Technology services & enterprise solutions. It provides solutions for leasing and finance, healthcare technology, insurance, and e-Procurement. Its products include Enterprise Solutions, Business Intelligence, IT Consulting & Business Process Reengineering, Technology & Business Process Outsourcing, Application Development & Maintenance, Cloud Services. Its operating segments are product-based solutions and ancillary services, professional services, and business process outsourcing. Geographically, it operates in Pakistan, Asia Pacific, Australia & the USA, the UK, and other countries.
77GF Score

Get the complete analysis for KAR:NETSOL

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₨134.47
Price
₨177.40
GF Value