Transmission of Quarterly Accounts for the Perios Ended September 30, 2025

‌Condensed Interim Financial Statements

For the three months ended September 30, 2025

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.

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The Directors of Pak Datacom Limited (PDL) are pleased to present to the shareholders the report along with un-audited condensed interim financial statements of the Company for the three-month period from July 01, 2025 to September 30, 2025.

Pakistan's economy continued to face a challenging macroeconomic environment during the period under review. Despite moderate improvement in foreign exchange reserves and a slight reduction in inflation compared to the previous year, high energy costs, exchange rate volatility, and increased taxation continued to strain business activities. The data communication and telecom sectors, being import-dependent for equipment and technology, remained under pressure due to persistent constraints on Letters of Credit (LCs) and higher import costs. However, gradual digital adoption by public and private sector institutions, cloud infrastructure growth, and e-governance initiatives continue to create opportunities for sustainable growth in the information and communication technology (ICT) domain.

During the quarter ended September 30, 2025, the Company recorded net revenue of Rs. 304.303 million compared to Rs. 287.164 million in the corresponding period last year, reflecting a steady improvement in core operations. Gross profit stood at Rs. 80.306 million, while net profit for the period amounted to Rs. 34.334 million, resulting in earnings per share (EPS) of Rs. 2.90. This performance demonstrates the Company's continued resilience and focus on operational efficiency, cost optimization, and strategic resource allocation despite a volatile business environment.

The Company continues to focus on enhancing operational sustainability through digital transformation, automation of internal processes, and renewable energy integration to manage escalating energy and administrative costs. PDL is actively exploring diversification opportunities within ICT and data-driven services to strengthen its market positioning and revenue base. Moreover, the Company remains committed to maintaining high standards of corporate governance and transparency to uphold stakeholder trust. The Board acknowledges that the current macroeconomic conditions, including potential interest rate adjustments and fiscal tightening, may affect business growth in the near term. Nevertheless, your Company remains confident that ongoing digitalization trends, expansion in cloud services, and demand for secure communication networks will provide long-term growth avenues for Pak Datacom Limited.

The Board takes this opportunity to thank its shareholders, regulatory bodies, customers and strategic partners for the trust and confidence that they have reposed in the Company. It is this trust and confidence that enables the employees, management and the Board as a team to steer our organization towards the path of success. The Board also appreciates its employees for their unrelenting commitment and contribution towards the success of the Company.

Islamabad

October 28, 2025

Ali Saleem Rana

Chief Executive (Acting)

Rubina Safir

Director

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CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION (UN-AUDITED) AS AT SEPTEMBER 30, 2025

September 30,

2025

June 30,

2025

NON-CURRENT ASSETS

Note

Un-audited Audited

Rupees

Property and equipment 4

Intangible assets 5

Deferred taxation

CURRENT ASSETS

Stock-in-trade

Trade debts 6

Contract assets 7

Contract work in progress Advances and other receivables

Trade deposits and short term prepayments Taxation - net

Interest accrued

Short term investments

Cash and bank balances 8

SHARE CAPITAL AND RESERVES

343,577,629 305,205,302

1,734,704,786 1,799,063,514

2,078,282,415 2,104,268,816

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

Issued, subscribed and paid up capital 9 118,592,100 118,592,100 Reserves

General reserve 700,000,000 700,000,000

Unappropriated profits 707,999,176 673,665,567

1,526,591,276 1,492,257,667

NON-CURRENT LIABILITIES

Deferred employees' benefits Lease liabilities

CURRENT LIABILITIES

Customers' deposits Contract liability

Trade and other payables 10

Current portion of lease liabilities Unclaimed dividend

Unpaid dividend

144,522,921 111,700,672

407,168,218 500,310,477

CONTINGENCIES AND COMMITMENTS 11

2,078,282,415 2,104,268,816

The annexed notes 1 - 21 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

‌ 5

Three months period ended

September 30, September 30,

2025 2024

Note

Rupees

The annexed notes 1 - 21 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

‌ 6

FOR THE THREE MONTHS PERIOD ENDED SEPTEMBER 30, 2025

Three months period ended

September 30, September 30,

2025 2024

Rupees

Profit / (Loss) for the period 34,333,609 38,465,092

Other comprehensive income not to be reclassified to profit or loss in subsequent periods:

Re-measurement gain on defined benefit plan - -

Total comprehensive income / (loss) for the period 34,333,609 38,465,092 The annexed notes 1 - 21 form an integral part of these financial statements.

Umar Iqbal Khan

Chief Financial Officer (A)

Ali Saleem Rana

Chief Executive (A)

Rubina Safir

Director

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CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED) FOR THE THREE MONTHS PERIOD ENDED SEPTEMBER 30, 2025

Rupees

The annexed notes 1 - 21 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

‌ 8

CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED)

FOR THE THREE MONTHS PERIOD ENDED SEPTEMBER 30, 2025

Three months period ended

September 30, September 30,

2025 2024

CASH FLOWS FROM OPERATING ACTIVITIES

Note

Rupees

Profit / (loss) for the period - before taxation 45,361,940 54,399,747 Adjustments for non-cash items:

Depreciation 8,476,847 7,141,808

Amortization 944,801 838,589

Property and equipment - write off - 8,600

Loss / (gain) on disposal of property, plant and equipment - 121,688 Impairment reversal on financial assets (4,722,880) (10,489,127)

Finance cost 3,200,836 2,432,766

Unrealized exchange (gain) / loss 1,772,596 3,021,868

Interest income (7,188,331) (16,913,465)

Provision for gratuity 4,376,691 784,622

Provision for earned leave encashment 2,314,116 2,360,411 Provision for provident fund 2,227,972 (3,482,907)

56,764,588 40,224,599

Changes in working capital Decrease / (increase) in inventories Decrease / (increase) in trade debts

Decrease / (increase) in contract assets Decrease / (increase) in contract work in progress

Decrease / (increase) in advances and other receivables

Decrease / (increase) in trade deposits and short term prepayments Increase / (decrease) in customers' deposits

Increase / (decrease) in contract liability

Increase / (decrease) in trade and other payables

43,893,259 (36,196,299) 100,657,847 4,028,300

Taxes paid (18,680,829) (26,756,275)

Leave encashment paid (1,551,560) (9,818,661)

Net cash generated from / (used in) operating activities 80,425,458 (32,546,636)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property and equipment Proceeds from sale of property and equipment (Purchase) / sale of short term investments Purchase of intangibles

Interest and profit received

Net cash used in investing activities 8,326,648 13,583,792

CASH FLOWS FROM FINANCING ACTIVITIES

Payment of finance lease obligation Dividend paid

Finance cost paid

Net cash used in financing activities (4,268,142) (10,553,901)

Net increase / (decrease) in cash and cash equivalents 84,483,963 (29,516,745)

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 (2,909,454) (3,005,028)

Cash and cash equivalents at the end of the period 8 592,938,597 754,857,137

The annexed notes 1 - 21 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

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FOR THE THREE MONTHS PERIOD ENDED SEPTEMBER 30, 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 Companies Ordinance, 1984 (which is 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 1, 1994 and is principally engaged in setting up, operating and maintaining a network of data communication and serving the needs of the customers.

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

2. STATEMENT OF COMPLIANCE

   1. 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 Financial Reporting Standards (IFRS Standards) issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017; and

      • Islamic Financial Accounting standards (IFAS) issued by institute of Chartered Accountants of Pakistan as are notified under the Companies Act, 2017; and

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

        Where provisions of and directives issued under the Companies Act, 2017 differ from the IFRS Standards, the provisions of and directives issued under the Companies Act, 2017 have been followed.

   2. These condensed interim financial statements do not include all the information required for full financial statements and should be read in conjunction with the annual audited financial statements for the year ended June 30, 2025.

   3. These condensed interim financial statements are un-audited and being submitted to the members as required under Section 237 of the Companies Act, 2017 and the listing regulations of the Pakistan Stock Exchange.

3. ACCOUNTING POLICIES

   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.

   2. 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.

   3. 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.

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September 30,

June 30,

Write off:

Cost

Accumulated depreciation Transfer from leased to owned:

(906,030) (3,447,964)

-

-

(776,700)

187,963

- (588,737)

‌September 30,

2025

Un-audited

Rupees

11

June 30,

2025

Audited

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

Employees' retirement and other service benefits :

Provident fund 65,630,781 63,402,809

294,755,512 385,891,620

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1. CONTINGENCIES AND COMMITMENTS

   1. Contingencies

      1. There has been no significant change in the the status of contingencies as disclosed in Note 25 to the audited financial statements of the Company for the year ended June 30, 2025.

      2. 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 September 30, 2025 is Rs. 106.222 million (June 30, 2025: 201.503 million).

   2. Commitments

      The Company has following commitments in respect of:

      September 30,

      2025

      Un-audited

      Rupees

      June 30,

      2025

      Audited

      Capital expenditure commitments 58,720,072 61,169,787

      Outstanding letter of credits 47,657,775 51,325,506

      Three months period ended

      September 30, September 30,

      2025 2024

2. REVENUE

   Class Value Added Services

   Note

   Rupees

   (CVAS) / data communication services 305,462,463 326,479,676

   Specialised projects 45,245,989 14,002,850

   Solar equipment sales 11,394,932 5,919,480 Telecom infrastructure services 261,705 261,705

   Gross revenue 362,365,089 346,663,711

   Less:

   Sales tax / Federal Excise Duty (42,860,721) (45,448,763)

   Advance tax (15,200,995) (14,050,862)

   304,303,373 287,164,086

3. COST OF REVENUE

   Channel and local lead rentals 93,045,355 80,849,971

   Space segment rentals 28,543,165 25,689,318

   Cost of goods sold 10,527,299 5,490,167

   Salaries and other benefits 13.1 41,020,928 50,017,540

   Repair and maintenance expenses 1,593,322 2,138,305

   License fee 923,898 1,068,962

   Depreciation - operating fixed assets 4,257,489 3,524,819 Depreciation - right of use assets - 28,377 Amortisation 944,802 838,589

   Travelling and local conveyance 1,460,446 1,155,529

   Communication expenses 463,785 411,186

   Vehicle running expenses 6,526,421 5,462,536

   Insurance 74,474 125,703

   Entertainment 821,487 366,674

   Rent, rates and taxes 1,699,089 982,429

   Utilities 1,104,090 2,336,365

   Specialised projects' costs 30,991,026 21,435,187

   223,997,076 201,921,657

   1. Salaries and other benefits include employees' retirement and other service benefits of Rs. 11.22 Million (September 30, 2024: Rs. 23.98 million).

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Three months period ended

September 30, September 30,

2025 2024

Note

Rupees

Auditors' remuneration 429,942 411,625

53,440,678 50,076,845

Three months period ended

September 30, September 30,

2025 2024

1. MARKETING EXPENSES

   Rupees

   Advertisement and marketing 2,876,716 171,742

   Salaries and other benefits	15.1	8,482,878	5,833,152
   Travelling and local conveyance		1,826,309	579,896
   Communication expenses		38,302	23,759
   Vehicle running expenses		888,862	698,259
   Insurance		3,176	3,584
   Depreciation - operating fixed assets		35,165	46,478
   Repair and maintenance expenses		23,500	61,789

   Entertainment 132,217 4,060

   14,307,125 7,422,719

   1. Salaries and other benefits include employees' retirement and other service benefits of Rs. 2.67 million (September 30, 2024: Rs. 1.1 million).

      ‌14

      Three months period ended

      September 30, September 30,

      2025 2024

2. FINANCE INCOME / (COST)

   Rupees

   Exchange gain / (loss) - net (2,208,096) (3,062,971)

   Finance lease charges (2,787,848) (1,834,320)

   Bank charges (412,988) (598,446)

   (5,408,932) (5,495,737)

3. OTHER INCOME

   Income from financial assets

   Return on short term investments 3,433,543 7,668,070

   Return on bank deposits 3,554,526 9,021,070

   Return on bank deposits with Islamic Banks 200,262 224,325

   Income from non-financial assets

   Gain / (Loss) on property & equipment - (130,288) Others 26,301,167 4,880,315

   33,489,498 21,663,492

4. TRANSACTIONS AND BALANCES WITH RELATED PARTIES

   Related Parties include holding company, associated company, directors, key management personnel, 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:

   Three months period ended

   Aggregate % of September 30, September 30,

   shareholding 2025 2024

   Rupees

   Telecom Foundation - Holding Company 55.08%

   Donations payable 1,500,000 1,500,000

   Key management personnel

   Directors

   Directorship fee 7,070,000 2,940,000

   Sale of solar systems - 8,921,810

   Others 2,247,822 1,275,521

   Receiveable against solar system sales 3,217,593 9,136,761 Unbilled against solar panels - 3,488,010

   Advances received against solar panels - 640,000 Remuneration of other key management personnel 14,702,211 12,766,730

   Other related parties

   Staff retirement benefit plan - Gratuity fund

   (Receiveable from) / Payable to Gratuity fund (4,872,632) (10,089,190) Staff retirement contribution plan - Provident fund

   Payable to Provident fund 65,630,781 49,383,087

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5. 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 carring amount of all financial assets and liabilities are estimated to approximate their fair values.

6. GENERAL

   Figures have been rounded off to the nearest rupee.

7. DATE OF AUTHORIZATION FOR ISSUE

These financial statements have been authorized for issue by the Board of Directors of the Company on October 28, 2025.

Umar Iqbal Khan

Chief Financial Officer (A)

Ali Saleem Rana

Chief Executive (A)

Rubina Safir

Director