AIRLINK 1QFY27 profit drops 36%

October 28, 2026 (MLN): Air Link Communication Limited (PSX: AIRLINK) posted a 36% decline in its consolidated net profit for the first quarter ended September 30, 2026 (1QFY27 / 3MFY27), clocking in at Rs1.02bn compared to Rs1.58bn recorded in the corresponding period of the previous fiscal year.

Reflecting the compressed bottom line, basic and diluted earnings per share (EPS) for the three-month period contracted 36% to Rs2.58, down from Rs4.01 in 3MFY26.

The contraction in earnings was primarily led by a 7% decline in top-line revenue alongside margin pressure.

Revenue from contracts with customers fell to Rs22.81bn during the quarter, compared to Rs24.40bn in the same period last year.

Cost of revenue declined by 6% to Rs19.85bn from Rs21.01bn. Gross profit fell 13% year-on-year to Rs2.96bn from Rs3.39bn, resulting in a gross margin reduction from 13.88% to 12.97%.

Operational overheads expanded during the period, driven by higher operational activities.

Administrative expenses grew 25% to Rs387.47m (up from Rs309.68m), while selling and distribution costs surged 41% to Rs97.79m (compared to Rs69.46m in 3MFY26).

Operating overheads aggregated to Rs485.26m, up 28% year-on-year. Coupled with a 41% drop in other income to Rs185.04m (down from Rs315.76m), operating profit contracted 18% to Rs2.47bn against Rs3.01bn recorded in the previous corresponding period.

Below the operating line, profitability was further weighed down by borrowing costs and other overheads.

Other expenses rose 11% to Rs139.02m, while finance costs jumped 19% to Rs1.16bn compared to Rs968.22m in 3MFY26.

Consequently, profit before tax decreased 39% to Rs1.36bn from Rs2.23bn. The company incurred a lower tax charge of Rs345.03m (down 47% from Rs646.63m), concluding the three-month period with a final net profit of Rs1.02bn.

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