Air Link FY25 profit expected to drop 20%

August 4, 2025 (MLN):  Air Link Communication Limited (PSX: AIRLINK) is projected to report a 20% YoY decline in earnings for FY25 with profit after-tax estimated at Rs3.7 billion and earnings per share (EPS) of Rs9.3, according to the latest earning preview by Arif Habib Limited (AHL).

The earning plunge is primarily attributed to a drop in volumetric sales.

Locally manufactured mobile devices fell to 28.3 million units in FY25, down 13.1% YoY, as high tax rates, weak rural demand, and poor farm economics weighed on affordability particularly in the low-end segment.

On a quarterly basis, Air Link’s earnings are forecast to contract by 46% YoY by AHL.

Net sales are expected to reach Rs27.5bn, which is a 25% decline YoY and a 3% dip QoQ.

However, gross margins are to improve by 450 basis points to 10.6%, aided by operational cost efficiencies and better plant utilization.

Finance costs are projected to increase by 36% YoY to Rs1.35bn, which shows greater reliance on short-term borrowings.

The brokerage also anticipated a dividend payout of Rs2 per share for the quarter, taking the full-year FY25 dividend to Rs4.5 per share.

Air Link Communication Limited was originally incorporated on January 2, 2014, as a private limited company under the then Companies Ordinance, 1984, and was converted into a public limited company on April 24, 2019.

The company is engaged in the import, export, distribution, and retail of communication and IT-related products and services, including smartphones, tablets, laptops, accessories, and allied technology products.

Lately, Meezan Bank Limited, acting as the Shariah Technical Services and Support Provider, has confirmed that Air Link remains compliant with the Shariah screening criteria of the KMI All Share Islamic Index, as prescribed by PSX.

As of today’s close, Air Link is trading at Rs140 per share.

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