Transmission of Half Yearly Financials (July 01, 2025 to December 31, 2025)

For the six months period ended December 31, 2025

‌ 1 PAK DATACOM LIMITED

BOARD OF DIRECTORS

1. Syed Zomma Mohiuddin Chairman / Non-Executive Director

2. Ms. Rubina Safir Independent Director / Female Director

3. Engr. Perwaiz Khan Non-Executive Director

4. Syed Junaid Imam Non-Executive Director

5. Mr. Muhammad Izqar Khan Non-Executive Director

6. Mr. Shamim Ahmed Sherazi Independent Director

7. Mr. Muhammad Waheed Non-Executive Director

8. Mr. Ali Saleem Rana Acting Chief Executive / Company Secretary

AUDIT COMMITTEE

1. Ms. Rubina Safir Chairperson

2. Mr. Muhammad Izqar Khan Member

3. Engr. Perwaiz Khan Member

4. Mr. Muhammad Waheed Member

HUMAN RESOURCE & REMUNERATION COMMITTEE

1. Mr. Shamim Ahmed Sherazi Chairman

2. Mr. Muhammad Waheed Member

3. Syed Junaid Imam Member

4. Mr. Ali Saleem Rana Member

PROCUREMENT COMMITTEE

1. Syed Zomma Mohiuddin Chairman

2. Mr. Shamim Ahmed Sherazi Member

3. Engr. Perwaiz Khan Member

NOMINATION COMMITTEE

1. Syed Zomma Mohiuddin Chairman

2. Mr. Muhammad Izqar Khan Member

3. Mr. Muhammad Waheed Member

STRATEGY & PROJECT APPRAISAL COMMITTEE

1. Syed Zomma Mohiuddin Chairman

2. Syed Junaid Imam Member

3. Mr. Muhammad Izqar Khan Member

4. Ms. Rubina Safir Member

COMPANY SECRETARY

Mr. Ali Saleem Rana

CHIEF FINANCIAL OFFICER

Mr. Umar Iqbal Khan (Acting)

REGISTERED OFFICE

1st Floor, Telecom Foundation, TF Complex, TF Headquarters, 7-Mauve Area, G-9/4, Islamabad.

HEAD OFFICE

3rd Floor, Umar Plaza, Blue Area, Islamabad. Tel: (051) 2344123, 2344125, Fax: (051)2344111.

SHARES DEPARTMENT

CDC Shares Registrar Services Limited (CDCSRSL), CDC House, 99-B, Block B, S.M.C.H.S., Main Shahra-e-Faisal, Karachi - 74400. Tel: (92-21) 111-111-500.

AUDITORS

BDO Ebrahim & Co. Chartered Accountants, 3rd Floor, Saeed Plaza, 22-East Blue Area, Jinnah Avenue, Islamabad. Tel: (92-51) 2604461-4.

LEGAL ADVISOR

Ahmed Bashir & Associates, Advocates and Solicitors, 210-A, Sughra Tower, Street # 73, Sector F11/1, Islamabad.

‌PAK DATACOM LIMITED 2

The Directors of Pak Datacom Limited (PDL) are pleased to present to the shareholders the Directors' Report along with the unaudited condensed interim financial statements of the Company for the six-month period from July 1, 2025 to December 31, 2025.

During the period under review, Pakistan's economy continued to operate under significant macroeconomic pressure, notwithstanding some improvement in foreign exchange reserves and a moderation in inflation. High energy tariffs, persistent currency weakness, and an elevated taxation burden continued to weigh on business confidence and corporate profitability, prompting a number of companies to scale down operations or consider relocation abroad. The data communications and telecommunications sectors, being heavily reliant on imported equipment and technology, faced additional headwinds from elevated import costs. Nevertheless, the ongoing digital transformation across public and private sectors, expansion of cloud infrastructure, structural stabilization measures by the Government, and continued e-governance initiatives are expected to provide a supportive foundation for sustainable growth within the ICT sector.

During the six-month period ended December 31, 2025, the Company recorded net revenue of Rs. 605.887 million, compared to Rs. 654.297 million in the corresponding period of the prior year. Gross profit stood at Rs. 142.347 million, while net profit for the period amounted to Rs. 9.705 million, yielding earnings per share (EPS) of Rs. 0.82. The variation in revenue reflects the combined impact of competitive pricing pressures in the corporate data connectivity market and the phased recognition of certain project-based revenues as underlying projects progress toward completion.

The Company remains focused on strengthening operational sustainability through continued digital transformation initiatives, automation of internal processes, and the integration of renewable energy solutions to mitigate rising energy and administrative costs. The Company is also actively pursuing diversification of its ICT and data-driven service offerings to enhance its competitive position and broaden its revenue base. While prevailing macroeconomic factors, including potential adjustments in interest rates and ongoing fiscal consolidation measures, may hamper near-term business expansion, the Board remains confident that sustained digitalization trends, growth in cloud-based services, and increasing demand for secure and reliable communication networks will underpin the Company's long-term growth prospects.

The Board expresses its sincere gratitude to the shareholders, regulatory authorities, valued customers, and strategic partners for their continued trust and confidence in the Company. This steadfast support enables the Board, management, and employees to collectively steer the Company toward sustained growth and success. The Board also places on record its deep appreciation for the dedication, professionalism, and commitment of the Company's employees, whose contributions remain integral to the achievement of its strategic objectives.

For and on behalf of the Board

Islamabad

February 26, 2026

Ali Saleem Rana

Chief Executive (Acting)

Rubina Safir

Director

‌ 3 PAK DATACOM LIMITED

‌PAK DATACOM LIMITED 4

INDEPENDENT AUDITORS' REVIEW REPORT TO THE MEMBERS OF PAK DATACOM LIMITED

Report on Review of Interim Financial Statements

Introduction

We have reviewed the accompanying condensed interim statement of financial position of Pak Datacom Limited ("the Company") as at December 31, 2025 and the related condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed interim statement of changes in equity and condensed interim statement of cash flows and notes to the condensed interim financial statements for the six months period then ended (herein after referred to as the "interim financial statements"). Management is responsible for the preparation and presentation of these interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these interim financial statements based on our review,

Scope of Review

We conducted our review in accordance with the International Standards on Review Engagements 2410, "Review of Interim Financial Information performed by the Independent Auditor of the Entity.' A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial statements are not prepared, in all material respects, in accordance with the accounting and financial reporting standards as applicable in Pakistan for interim financial reporting.

Other Matter

Pursuant to the requirement of Section 237 (1) (b) of the Companies Act, 2017, only cumulative figures for the half year, presented in the second quarter accounts are subject to a limited scope review by the statutory auditors of the company. Accordingly, the figures of the condensed interim statement of profit or loss and condensed interim statement of comprehensive income for the three months' period ended December 31, 2025 and December 31, 2024 have not been reviewed by us.

The engagement partner on the review resulting in this independent auditors' review report is Atif Riaz.

Islamabad

Dated: 27 FEB 2026

UDIN: RR202510060HWokGBY45

BDO EBRAHIM & CO.

Chartered Accountants

‌ 5 PAK DATACOM LIMITED

AS AT DECEMBER 31, 2025

December 31,

2025

June 30,

2025

200,688,235

28,334,425

76,182,642

285,841,975

26,669,823

74,057,997

NON-CURRENT ASSETS

Note

Un-audited Audited

Rupees Rupees

Property and equipment 4

Intangible assets 5

Deferred taxation

CURRENT ASSETS

Stock-in-trade 6

Trade debts 7

Contract assets 8

Contract work in progress

Advances and other receivables 9

Trade deposits and short term prepayments Taxation - net

Interest accrued

Short term investments 10

Cash and bank balances 11

386,569,795 305,205,302

105,942,239

222,231,914

328,852,954

90,278,331

96,179,142

43,951,665

38,870,318

1,362,338

308,495,174

388,300,703

484,857

539,652,853

279,817,422

152,814,392

79,131,532

40,867,213

19,664,084

960,724

174,471,866

511,198,571

1,624,464,778 1,799,063,514

TOTAL ASSETS 2,011,034,573 2,104,268,816

SHARE CAPITAL AND RESERVES

Authorised share capital 1,000,000,000 1,000,000,000

Issued, subscribed and paid up capital 12 118,592,100 118,592,100

700,000,000 700,000,000

Unappropriated profits 612,215,285 673,665,567

1,430,807,385 1,492,257,667

NON-CURRENT LIABILITIES

Deferred employees' benefits Lease liabilities

CURRENT LIABILITIES

Customers' deposits Contract liability

Trade and other payables 13

Current portion of lease liabilities Unclaimed dividend

Unpaid dividend

167,811,000 111,700,672

67,943,648

16,842,166

289,870,759

22,415,581

14,184,161

1,159,873

87,044,258

6,193,760

385,891,620

6,910,773

13,621,017

649,049

61,017,417

50,683,255

64,832,915

102,978,085

412,416,188 500,310,477

TOTAL EQUITY AND LIABILITIES 2,011,034,573 2,104,268,816

CONTINGENCIES AND COMMITMENTS 14

The annexed notes 1 to 29 form an integral part of these condensed interim financial statements.

Umar Iqbal Khan

Chief Financial Officer (A)

Ali Saleem Rana

Chief Executive (A)

Rubina Safir

Director

‌PAK DATACOM LIMITED 6

CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (UN-AUDITED)

FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2025

Six months period ended Three months period ended

December 31,

2025

December 31,

2024

December 31,

2025

December 31,

2024

Note

Rupees Rupees

Rupees Rupees

The annexed notes 1 to 29 form an integral part of these condensed interim financial statements.

Umar Iqbal Khan

Chief Financial Officer (A)

Ali Saleem Rana

Chief Executive (A)

Rubina Safir

Director

‌ 7 PAK DATACOM LIMITED

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)

FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2025

Six months period ended Three months period ended

December 31,

2025

December 31,

2024

December 31,

2025

December 31,

2024

Rupees Rupees Rupees Rupees

Profit for the period 9,704,978 48,092,597 (22,670,124) 9,627,502

Other comprehensive income - - - -

Total comprehensive income

for the period 9,704,978 48,092,597 (22,670,124) 9,627,502

The annexed notes 1 to 29 form an integral part of these condensed interim financial statements.

Umar Iqbal Khan

Chief Financial Officer (A)

Ali Saleem Rana

Chief Executive (A)

Rubina Safir

Director

‌PAK DATACOM LIMITED 8

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)

FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2025

Rupees

Transactions with owners of the Company:

Final dividend for the year ended

Umar Iqbal Khan

Chief Financial Officer (A)

Ali Saleem Rana

Chief Executive (A)

Rubina Safir

Director

‌ 9 PAK DATACOM LIMITED

CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED)

FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2025

Six months period ended

CASH FLOWS FROM OPERATING ACTIVITIES

Note

December 31,

2025

Rupees

December 31,

2024

Rupees

Profit before taxation 26,420,138 76,827,333

Adjustment of non-cash income and expense 25 22,869,084 1,504,680

Operating profit before working capital changes 49,289,222 78,332,013

Working capital changes:

(Increase) / decrease in current assets

Inventories Trade debts Contract assets

Contract work in progress Advances and other receivables

Trade deposits and short term prepayments Increase / (decrease) in current liabilities Customers' deposits

Contract liability

Trade and other payables

87,708,746 (298,713,128)

Cash generated from / (used in) operations 136,997,968 (220,381,115) Taxes paid (33,796,749) (55,082,038)

Gratuity paid - (681,730)

Provident fund paid (937,058) (2,065,379)

Leave encashment paid (1,593,561) (13,991,354)

Net cash generated from / (used in) operating activities 100,670,600 (292,201,616)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property and equipment Proceeds from sale of property and equipment Purchase of intangibles

Purchase of short term investments Interest and profit received

Net cash (used in) / generated from investing activities (134,309,596) 11,853,646

CASH FLOWS FROM FINANCING ACTIVITIES

Dividend paid

Payment of finance lease obligation Finance cost paid

Net cash used in financing activities (84,643,314) (51,445,424)

Net decrease in cash and cash equivalents (118,282,310) (331,793,394) Cash and cash equivalents at the beginning of the year 511,364,088 787,378,910 Effect of movements in exchange rates on cash and cash equivalents (4,701,327) (8,011,674)

Cash and cash equivalents at the end of the period 22 388,380,451 447,573,842 The annexed notes 1 to 29 form an integral part of these condensed interim financial statements.

Umar Iqbal Khan

Chief Financial Officer (A)

Ali Saleem Rana

Chief Executive (A)

Rubina Safir

Director

‌PAK DATACOM LIMITED 10

NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)

FOR THE SIX MONTH PERIOD ENDED DECEMBER 31, 2025

1. LEGAL STATUS AND ITS OPERATIONS

   Pak Datacom Limited (the Company) was incorporated in Pakistan on July 13, 1992 as a private limited company under the repealed Companies Ordinance, 1984 (repealed with the enactment of the Companies Act, 2017 on May 30, 2017) and was converted into a public limited company on June 26, 1994. The Company has its shares quoted on the Pakistan Stock Exchange Limited.

   The Company commenced its commercial activities from July 01, 1994 and is principally engaged in setting up, operating and maintaining a network of data communication and serving the needs of the customers.

   As per the revised Memorandum of Association, effective from October 29, 2025, the Company is authorised to engage in all lawful businesses, including but not limited to telecommunications, data infrastructure, internet services, information technology, and the provision of alternative/green energy. Furthermore, the Company may be registered or recognised in any foreign country or jurisdiction and is authorised to take all necessary steps and actions in connection therewith and ancillary thereto.

   The Company is a subsidiary of Telecom Foundation, Pakistan which holds 55.08% share holding in the Company. The registered office of the Company is situated at 1st Floor, TF Complex, 7 -Mauve Area, G - 9/4, Islamabad.

2. BASIS OF PREPARATION

   1. Statement of compliance

      These condensed interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of:

      • International Accounting Standard (IAS) 34: 'Interim Financial Reporting' issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017; and

      • Provisions of and directives issued under the Companies Act, 2017.

      Where the provisions of and directives issued under the Companies Act, 2017 differ with the requirements of IAS 34, the provisions of and directives issued under the Companies Act, 2017 have been followed.

   2. These condensed interim financial statements are un-audited and are being submitted to the members in accordance with the requirements of Section 237 of the Companies Act 2017 (the Act) and the listing regulations of Pakistan Stock Exchange. These condensed interim financial statements do not include all of the information required for annual financial statements, and should be read in conjunction with the annual financial statements of the Company for the year ended June 30, 2025. Comparative condensed interim statement of financial position is extracted from annual financial statements as of June 30, 2025, whereas comparative condensed interim statement of profit or loss, condensed interim comprehensive income, condensed interim statement of cash flows and condensed interim statement of changes in equity are extracted from un-audited condensed interim financial statements for the half year ended December 31, 2024.

   3. Functional and presentation currency

      These condensed interim financial statements has been presented in Pak Rupees, which is the functional and presentation currency of the Company.

3. MATERIALACCOUNTING POLICY INFORMATION

   1. The accounting policies adopted and methods of computation followed in the preparation of these interim financial statements are same as those applied in the preparation of financial statements for the year ended June 30, 2025. Otherwise stated.

   2. Changes in accounting standards, interpretations and pronouncements

      1. Amendments to published accounting and reporting standards which became effective during the period:

         ‌11 PAK DATACOM LIMITED

         There were certain amendments to accounting and reporting standards which became mandatory for the Company during the period. However, the amendments did not have any significant impact on the financial reporting of the Company and, therefore, have not been disclosed in these condensed interim financial statements.

      2. Amendments to published accounting and reporting standards that are not yet effective and have not been early adopted by the Company:

      There are certain amendments to the accounting and reporting standards that will be mandatory for the Company's accounting period beginning on or after January 01, 2025, but are considered not to be relevant or to have any significant effect on the Company's operations and are, therefore, not detailed in these condensed interim financial statements.

   3. The preparation of these interim financial statements in conformity with approved accounting standards require management to make estimates, assumptions and use judgements that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. Estimates, assumptions and judgments are continually evaluated and are based on historical experience and other factors, including reasonable expectations of future events. Revisions to accounting estimates are recognised prospectively commencing from the period of revision.

   4. The significant estimates, judgments and assumptions made by the management in applying the accounting policies and the key sources of estimation uncertainty are the same as those applied to the annual audited financial statements as at and for the year ended June 30, 2025.

4. PROPERTY AND EQUIPMENT

   Note

   December 31,

   2025

   Un-audited Rupees

   June 30,

   2025

   Audited Rupees

   Operating fixed assets 4.1 171,668,674 154,437,370

   Right of use assets 4.2 114,173,301 46,250,865

   285,841,975 200,688,235

   1. Operating fixed assets

      Net book value basis

      Opening net book value 154,437,370 135,994,087

      Additions 29,378,817 37,989,416

      (57,401,944)

      53,953,980

Disposal:

Cost

Accumulated depreciation

Write off:

Cost

Accumulated depreciation

Transferred from leased to owned: Cost

Accumulated depreciation

(1,493,133) (3,447,964)

- (588,737)

- 3,528,550

Depreciation charge (10,654,380) (19,037,982)

Closing net book value 171,668,674 154,437,370

Gross carrying value basis

Cost 654,406,151 635,298,984

Accumulated depreciation (482,737,477) (480,861,614)

Net book value 171,668,674 154,437,370 Rates of depreciation (%) 1.2 - 25 1.2 - 25

‌PAK DATACOM LIMITED 12

1. 1. Right of use (ROU) assets Net book value basis

      Note

      December 31,

      2025

      Un-audited

      Rupees

      June 30,

      2025

      Audited

      Rupees

      Opening net book value 46,250,865 63,276,125

      Additions 37,213,066 -

      Depreciation charge (7,776,159) (11,295,578)

      Lease modification 38,485,529 (2,201,132) Transferred from leased to owned: - (3,528,550)

      Closing net book value 114,173,301 46,250,865

      Gross carrying value basis

      Cost 167,998,207 92,299,612

      Accumulated depreciation (53,824,906) (46,048,747)

      Net book value 114,173,301 46,250,865

      Rates of depreciation:

      Leased vehicles (%) 20 25 - 33.33

      Leasehold office building (years) 5 - 10 5 - 10

2. INTANGIBLE ASSETS

   Net book value basis

   Opening net book value 28,334,425 8,046,851

   Additions 225,000 23,833,799

   Amortisation charge (1,889,602) (3,546,225)

   Closing net book value 26,669,823 28,334,425

   Gross carrying value basis

   Cost 40,718,661 40,493,661

   Accumulated depreciation (14,048,838) (12,159,236)

   Net book value 26,669,823 28,334,425

   Rates of amortisation:

   Software (years) 2 - 9.25 2 - 9.25

   Licenses (%) 5 - 33.33 5 - 33.33

3. STOCK-IN-TRADE

   This represent stock of solar panels at period end.

4. TRADE DEBTS

   Un-secured:

   Considered good 222,231,914 539,652,853

   Considered doubtful 64,642,542 60,893,861

   286,874,456 600,546,714

   Impairment loss allowance (64,642,542) (60,893,861)

   222,231,914 539,652,853

5. CONTRACT ASSETS

   Unbilled revenue 330,576,659 288,175,781

   Impairment loss allowance (1,723,705) (8,358,359)

   328,852,954 279,817,422

   ‌13 PAK DATACOM LIMITED

6. ADVANCES AND OTHER RECEIVABLES

   Advances to employees

   Note

   December 31,

   2025

   Un-audited

   Rupees

   June 30,

   2025

   Audited

   Rupees

   Personal 7,915,335 10,494,983

   Other receivables	13,003,150	9,521,723
   Advances to suppliers	8,633,268	6,853,529
   Receivable from gratuity fund	495,941	9,249,323
   Sales tax receivable	60,860,864	38,393,894

   Official 5,270,584 4,618,080

7. SHORT TERM INVESTMENTS

   At amortised cost:

   96,179,142 79,131,532

   Term deposit receipts (TDRs)	10.1	158,000,000	158,000,000
   Interest accrued		7,512,448	14,984,218
   At fair value through profit and loss: Mutual fund	10.2	165,512,448 142,982,726	172,984,218 1,487,648
   		308,495,174	174,471,866

   1. These represent local currency TDRs with Soneri Bank carrying mark-up ranging from 10.00% to 11.00% per annum (June 30, 2025: 8% to 18.25% per annum) maturing latest by May 14,

      2026. TDRs amounting to Rs. 108 million (June 30, 2025: Rs. 108 million) are pledged with Soneri Bank against unfunded bank facility.

   2. This represents investment in the 148,278.4782 units @ Rs. 10.5410 of mutual fund (Money market fund) with National Bank of Pakistan and 13,987,411.3298 units @ 10.1105 of mutual fund (Fixed term munafa plan) with National Bank of Pakistan.

8. CASH AND BANK BALANCES

   December 31,

   2025

   Un-audited

   Rupees

   June 30,

   2025

   Audited

   Rupees

   Cash in hand 1,332,517 1,418,158

   Cash at bank:

   Local currency- conventional	14,267,638	34,315,461
   Foreign currency- conventional	129,159,297	209,773,928
   osit accounts: Local currency - conventional 205,922,592 246,565,293
   Local currency - under shariah arrangements	37,698,407	19,291,248

   Current accounts:

   Dep

   388,380,451 511,364,088

   Less: Impairment loss allowance (79,748) (165,517)

   388,300,703 511,198,571

   1. Saving account carries mark up at the rates ranging from 6.5% to 9.5% (June 30, 2025: 6.5% to

      21%) per annum.

      ‌PAK DATACOM LIMITED 14

9. SHARE CAPITAL

   1. Authorised share capital

      100,000,000 ordinary shares of Rs 10 each (June 30, 2025: 100,000,000 ordinary shares

      December 31,

      2025

      Un-audited Rupees

      June 30,

      2025

      Audited Rupees

      of Rs 10/- each) 1,000,000,000 1,000,000,000

   2. Issued, subscribed and paid up capital:

      Shares issued for cash

      5,400,000 ordinary shares of Rs 10 each (June 30, 2025: 5,400,000 ordinary shares

      of Rs 10/- each) 54,000,000 54,000,000

      Shares issued as fully paid bonus shares:

      6,459,210 ordinary shares of Rs 10 each (June 30, 2025: 6,459,210 ordinary shares

      of Rs 10/- each) 64,592,100 64,592,100

      11,859,210 ordinary shares of Rs 10 each

      (June 30, 2025: 11,859,210 ordinary shares

      of Rs 10/- each) 118,592,100 118,592,100

10. TRADE AND OTHER PAYABLES

    Trade creditors 175,430,288 266,797,352

    Payable to employees 18,562,505 30,264,040

    Withholding tax payable 11,925,063 8,485,312

    Accrued liabilities 9,817,955 13,003,362

    License fee payable 1,801,642 3,938,745 Employees' retirement and other service benefits:

    Provident fund 72,333,306 63,402,809

    289,870,759 385,891,620

11. CONTINGENCIES AND COMMITMENTS

    1. Contingencies

       At this reporting date, there are no significant change in the status of contingencies as disclosed in note 26 to the audited financial statements of the Company for the year ended June 30, 2025 except for the followings:

       1. The Company has letter of guarantee facilities aggregating Rs. 250 million (June 30, 2025: Rs. 250 million) available from Soneri Bank. The amount availed on these facilities as at December 31, 2025 is Rs. 107.297 million (June 30, 2025: 201.503 million).

       2. The Deputy Commissioner Inland Revenue issued a notice under Rule 44(4) of the Income Tax Rules, 2002 for Tax Year 2021 on September 17, 2025 to provide reconciliation of withholding tax deducted during the tax year. A partial response was submitted on October 30, 2025, vide reference No. PDL/Tax/11248. An extension for submission of the remaining information has been obtained up to February 20, 2026. The proceedings are currently in progress. The management believes that the case is likely to be decided in the favour of the Company.

12. ‌PAK DATACOM LIMITED

December 31,

2025

Un-audited Rupees

June 30,

2025

Audited Rupees

14.1.3 PDL received a notice under section 147, bearing barcode No. 100000267041427, issued on December 31, 2025, against submitted estimate for advance tax of second quarter of Tax Year 2026. The compliance date and due date stated in the notice were the same. Subsequently, an order was issued creating a tax demand of PKR 13.55 million. Being aggrieved, the Company filed an appeal before the Commissioner Inland Revenue (Appeals) on February 3, 2026. The proceedings are currently in progress. The management believes that the case is likely to be decided in the favour of the Company.

14.2 Commitments

The Company has following commitments in respect of:

Six months period ended Three months period ended

1. REVENUE

   Class Value Added Services

   Note

   December 31,

   2025

   Rupees

   December 31,

   2024

   Rupees

   December 31,

   2025

   Rupees

   December 31,

   2024

   Rupees

   (CVAS) / data communication services	569,244,835	616,332,510	278,979,677		303,182,917
   Specialised projects	108,254,320	74,712,895	63,008,331		59,481,633
   Solar equipment sales	13,960,692	54,795,770	1,459,200		48,876,290
   Telecom infrastructure services	523,410	523,410	261,705		261,705
   Gross revenue	691,983,256	746,364,585	343,708,913		411,802,545
   Less:
   Sales tax / Federal Excise Duty (FED)	(86,096,180)	(92,067,192)		(42,125,209)	(44,669,239)
   Revenue - net	605,887,076	654,297,393		301,583,704	367,133,306

2. COST OF REVENUE

   Channel and local lead rentals 155,912,938 183,674,328 62,867,583 102,824,357

   Salaries and other benefits	16.1	112,299,067	103,316,780	71,278,139	53,299,240
   Specialised projects' costs		91,031,642	66,785,477	58,087,116	45,350,290
   Space segment rentals		51,001,305	42,846,326	22,458,141	17,157,009
   Vehicle running expenses Cost of goods sold		12,809,901 11,749,629	10,538,322 49,569,672	6,283,480 1,222,330	5,075,786 44,079,505
   Depreciation - operating fixed assets	9,347,546		7,162,727	5,090,057	3,637,908
   Repair and maintenance expenses	4,061,722		4,514,168	2,468,400	2,373,362
   Rent, rates and taxes	3,433,953		1,836,751	1,734,864	854,322
   Travelling and local conveyance	3,096,306		1,837,021	1,635,860	681,492
   Utilities	2,238,669		4,240,090	1,134,579	1,903,725
   License fee	1,918,083		2,046,577	994,185	977,615
   Amortisation	1,889,604		1,746,740	944,802	908,151
   Entertainment	1,308,373		1,367,663	486,886	1,003,489
   Communication expenses	1,035,088		864,913	571,303	453,727
   Depreciation - right of use assets	232,585		28,377	232,585	-
   Insurance	174,035		252,072	99,561	126,369
   Impairment loss on inventories		-	222,882	-	222,882

   463,540,446 482,850,886 237,589,871 280,929,229

   1. Salaries and other benefits include employees' retirement and other service benefits of Rs. 47.697 million (December 31, 2024: Rs. 46.427 million).

      ‌PAK DATACOM LIMITED 16

      Six months period ended Three months period ended

      Note

      December 31,

      2025

      Rupees

      December 31,

      2024

      Rupees

      December 31,

      2025

      Rupees

      December 31,

      2024

      Rupees

      17 ADMINISTRATIVE EXPENSES
      Salaries and other benefits Vehicle running expenses	17.1	87,322,425 8,577,830		72,933,897 5,811,815		53,587,050 4,352,595		40,180,010 2,734,995
      Depreciation - right of use assets		7,405,684		5,580,537		3,768,944		2,843,332
      Travelling and local conveyance		7,169,975		3,968,002		4,760,987		2,505,029
      Legal and professional charges		5,442,325		5,895,090		3,227,197		3,462,477
      Donation		3,855,000		4,460,800		1,750,000		2,580,800
      Entertainment		3,255,592		2,250,045		1,889,466		1,146,915
      Repair and maintenance expenses		2,694,760		2,890,053		2,008,623		2,033,807
      Utilities		1,339,765		1,714,254		714,305		625,518
      Printing and stationery		1,229,110		1,841,056		921,317		1,466,925
      Communication expenses		1,200,417		1,526,003		599,593		1,058,772
      Depreciation - operating fixed assets		1,198,117		1,388,649		650,664		583,721
      Rent, rates and taxes		523,835		665,286		219,883		263,000
      Insurance		527,861		442,656		276,336		217,623
      Auditors' remuneration		477,024		789,800		47,082		378,175
      		132,219,719		112,157,943		78,774,042		62,081,099

      17.1 Salaries and other benefits include employees' retirement and other service benefits of Rs. 21.939 million (December 31, 2024: Rs. 26.443 million).

      Six months period ended Three months period ended

      December 31,

      2025

      Rupees

      December 31,

      2024

      Rupees

      December 31,

      2025

      Rupees

      December 31,

      2024

      Rupees

      18 MARKETING EXPENSES
      Salaries and other benefits	18.1	19,811,335		15,170,184		11,328,457		9,337,032
      Travelling and local conveyance Advertisement and marketing		5,369,576 4,740,260		2,438,733 1,836,240		3,543,267 1,863,544		1,858,837 1,664,498
      Vehicle running expenses		1,744,748		1,413,368		855,886		715,109
      Repair and maintenance expenses		180,770		99,712		157,270		37,923
      Entertainment		148,573		158,552		16,356		154,492
      Depreciation - right of use assets		137,890		-		137,890		-
      Depreciation - operating fixed assets		108,717		92,956		73,552		46,478
      Communication expenses		66,583		64,400		28,281		40,641
      Insurance		12,391		7,218		9,215		3,634
      		32,320,843		21,281,363		18,013,718		13,858,644

      18.1 Salaries and other benefits include employees' retirement and other service benefits of Rs. 7.558 million (December 31, 2024: Rs. 4.264 million).

      Six months period ended Three months period ended

      19 FINANCE COST

      December 31,

      2025

      Rupees

      December 31,

      2024

      Rupees

      December 31,

      2025

      Rupees

      December 31,

      2024

      Rupees

      Exchange loss - net	4,176,773	7,522,926	1,968,677	4,459,955
      Bank charges	733,786	797,942	320,797	199,496
      Finance lease charges	6,007,429	3,524,688	3,219,581	1,690,368
      	10,917,988	11,845,556	5,509,055	6,349,819

3. ‌PAK DATACOM LIMITED

Six months period ended Three months period ended

Note

December 31,

2025

Rupees

December 31,

2024

Rupees

December 31,

2025

Rupees

December 31,

2024

Rupees

Six months period ended

1. EARNING PER SHARE (BASIC AND DILUTED)

   Note

   December 31,

   2025

   Rupees

   December 31,

   2024

   Rupees

   Profit for the period (Rupees) 9,704,978 48,092,597 Weighted average number of shares in issue (Number) 11,859,210 11,859,210 Basic and diluted earnings per share (Rupees) 0.82 4.06 There is no dilutive effect on the basic earnings per share of the Company.

2. CASH AND CASH EQUIVALENTS

   Cash and bank balances 11 388,300,703 447,496,965

   Allowance for impairment 79,748 76,877

   388,380,451 447,573,842

3. OPERATING SEGMENTS

   1. Basis for segmentation

      A business segment is a group of assets and operations engaged in providing services that are subject to risks and returns that are different from those of other business segments. The management has determined the operating segments based on the information that is presented to the Board of Directors for allocation of resources and assessment of performance. Based on internal management reporting structure, the company is organised into the following operating segments:

      Reportable segments

      Data communication services Specialised projects

      Solar equipment sales

      Operations

      Data communication, broadband, satellite, and enterprise connectivity services.

      Procurement and supply of specialised communication equipment, including the installation and provision of training on its operation and usage.

      Import and sale of solar panels.

      Management monitors the operating results of the abovementioned segments separately for the purpose of making decisions about resources to be allocated and for assessing performance. Segment performance is evaluated based on profit before tax.

   2. Information about reportable segments

      Information related to each reportable segment is set out below. Segment profit (loss) before tax is used to measure performance because management believes that this information is the most relevant in evaluating the results of the respective segments relative to other entities that operate in the same industries.

      PAK DATACOM LIMITED

      ‌ Six months Three months

      Note

      Data Communication

      Specialised Projects

      Rupees

      Solar Equipment

      Total

      Data Communication

      Specialised Projects

      Rupees

      Solar Equipment

      Total

      December 31, 2025:
      Revenue	486,772,162 106,393,438 12,721,477 605,887,077					238,992,062 61,265,097 1,326,545 301,583,704
      Cost of revenue	(356,410,634) (93,544,767) (12,001,115) (461,956,516)					(175,745,297) (59,682,240) (1,318,262) (236,745,799)
      Gross profit	130,361,528 12,848,671 720,362 143,930,561					63,246,765 1,582,857 8,283 64,837,905
      Administrative expenses		(64,235,173)	(6,185,576)	-	(70,420,749)		(38,119,504)	(4,386,667)	-	(42,506,172)
      Marketing expenses		(20,818,163)	(6,538,085)	(4,964,596)	(32,320,843)		(11,436,291)	(3,738,588)	(2,838,840)	(18,013,718)
      Segment profit before tax	23.3	45,308,192	125,010	(4,244,234)	41,188,969		13,690,970	(6,542,398)	(2,830,557)	4,318,015
      December 31, 2024:
      Revenue	526,017,139 73,484,483 54,795,770 654,297,392					258,775,383 59,481,633 48,876,290 367,133,306
      Cost of revenue	(365,382,180) (66,785,477) (50,676,761) (482,844,418)					(190,784,491) (45,350,290) (44,791,125) (280,925,906)
      Gross profit		160,634,959	6,699,006	4,119,009	171,452,974		67,990,892	14,131,343	4,085,165	86,207,400
      Administrative expenses		(58,260,242)	(3,731,252)	-	(61,991,494)		(30,253,971)	(2,863,714)	-	(33,117,686)
      Marketing expenses		(12,473,386)	(5,006,424)	(3,801,552)	(21,281,363)		(8,437,460)	(3,081,383)	(2,339,801)	(13,858,644)
      Segment profit before tax	23.3	89,901,331	(2,038,670)	317,457	88,180,117		29,299,461	8,186,246	1,745,364	39,231,070

      18

      ‌19 PAK DATACOM LIMITED

      As at December 31, 2025 Assets:

      Data Communication

      Specialised Projects

      Rupees

      Solar Equipment

      Total

      Segment assets 463,901,558 512,425,771 127,441,571 1,103,768,899

      Unallocated assets - - - 907,265,674 Total assets 463,901,558 512,425,771 127,441,571 2,011,034,573

      Liabilities:

      Segment liabilities 479,882,435 20,167,804 - 500,050,239

      Unallocated liabilities - - - 80,176,949 Total liabilities 479,882,435 20,167,804 - 580,227,188

      As at June 30, 2025 Assets:

      Segment assets 444,468,917 713,070,145 85,120,334 1,242,659,397

      Unallocated assets - - - 861,609,419 Total assets 444,468,917 713,070,145 85,120,334 2,104,268,816

      Liabilities:

      Segment liabilities 380,633,624 36,995,774 - 417,629,398

      Unallocated liabilities	-	-	-	194,381,751
      Total liabilities	380,633,624	36,995,774	-	612,011,149

      Six months period ended Three months period ended

      December 31,

      2024

      Rupees

      December 31,

      2023

      Rupees

      December 31,

      2024

      Rupees

      December 31,

      2023

      Rupees

   3. Reconciliation of reportable segment profit before tax

Total profit before tax 26,420,138 76,827,333 (16,983,295) 22,427,583

‌PAK DATACOM LIMITED 20

24 TRANSACTIONS AND BALANCES WITH RELATED PARTIES

Related Parties include holding company, associated company, directors, key management personal, employee benefit trust and post employment benefit / contribution plans. The Company in the normal course of bussiness carries out transactions with various related parties. The details of transactions are as follows;

Aggregate Six months period ended Three months period ended

% age of shareholding

December 31,

2025

Rupees

December 31,

2024

Rupees

December 31,

2025

Rupees

December 31,

2024

Rupees

Aggregate

Six months period ended

Three months period ended

% age of shareholding

December 31,

2025

Rupees

December 31,

2024

Rupees

December 31,

2025

Rupees

December 31,

2024

Rupees

Remuneration of other key management

Staff retirement benefit plan - Gratuity fund: (Receivable from) / Payable to

Provident fund:

‌21 PAK DATACOM LIMITED

Six months period ended

December 31,

2025

Rupees

December 31,

2024

Rupees

25 ADJUSTMENT OF NON-CASH EXPENSE AND INCOME

Depreciation 18,430,539 14,253,246

Provision for provident fund 9,867,555 4,997,348

Provision for gratuity 8,753,382 3,043,944

Finance cost 6,741,215 4,322,630

Provision for earned leave encashment 5,409,059 5,740,638

Unrealised exchange loss 2,975,485 8,091,674

Amortisation 1,889,602 1,746,740

Impairment reversal on financial assets (2,971,744) (2,642,057)

Gain on disposal of property and equipment (13,173,063) (2,571,500)

Interest income (15,052,946) (29,265,520)

Property and equipment - write off - 554,903 Lease modification - (6,767,366)

22,869,084 1,504,680

26 FINANCIAL RISK MANAGEMENT

The Company's financial risk management objectives and policies are consistent with those disclosed in the annual financial statements for the year ended June 30, 2025. There is no change in the nature and corresponding hierarchies of fair value levels of financial instruments from those as disclosed in the audited financial statements of the company for the year ended June 30, 2025.

The carrying amount of all financial assets and liabilities are estimated to approximate their fair values.

27 CORRESPONDING FIGURES

The corresponding figures have been rearranged and reclassified, wherever considered necessary for the purposes of comparison and better presentation. However, there is no significant reclassification during the year.

28 DATE OF AUTHORISATION FOR ISSUE

These financial statements have been authorised for issue by the Board of Directors of the Company on February 26, 2026.

29 GENERAL

Figures have been rounded off to the nearest rupee.

Umar Iqbal Khan

Chief Financial Officer (A)

Ali Saleem Rana

Chief Executive (A)

Rubina Safir

Director