📊 Airlink Reports Impressive Growth! Profit Jumps to Rs. 1.58 Billion, Revenue Up 11%

Air Link Communication Limited (AIRLINK) has posted a profit after tax of Rs. 1.58 billion for the first quarter of fiscal year 2026, marking a strong 88% year-on-year increase from Rs. 842 million earned during the same quarter last year. The company’s earnings per share (EPS) stood at Rs. 4.01, compared to Rs. 2.13 in 1QFY25.

However, the company’s quarterly profit showed a 16% decline compared to the preceding quarter, reflecting the impact of rising financial costs and reduced non-operating income.

Alongside its financial results, Airlink’s board approved a cash dividend of Rs. 2 per share for the quarter, rewarding shareholders amid continued business expansion.

Revenue and Margins Show Strong Recovery

Airlink’s net revenue grew by 11% year-over-year to Rs. 24.40 billion, up from Rs. 22.05 billion in the same period last year. According to analysts at Arif Habib Limited, the rise was supported by a low base effect, as Pakistan’s mobile phone manufacturing sector had produced just 5.4 million units in the corresponding quarter of FY25.

On a quarter-on-quarter basis, the company’s revenue surged 30%, showing a rebound in production and sales momentum.

Gross margins improved notably to 13.9%, compared to 9.8% a year earlier, driven by better product pricing and operational efficiency. Margins remained largely stable when compared to the previous quarter’s 14.1%, indicating consistent profitability despite elevated borrowing costs.

Other Income and Finance Costs

Airlink’s other income jumped 50% year-on-year to Rs. 316 million, mainly due to higher returns on short-term investments. However, it dropped 29% from the previous quarter, reflecting a decline in investment volume during the period.

Finance costs increased by 42% year-on-year to Rs. 968 million, which the company attributed to higher short-term borrowings and elevated inventory levels needed to support growing demand.

Tax Rate and Outlook

The company’s effective tax rate for the quarter stood at 29%, compared to 31.4% during the same period last year and 17% in the previous quarter.

Analysts expect Airlink’s profitability to remain strong through FY26, supported by improved margins, growing local demand for smartphones, and an expanding retail network.