AIRLINK profit jumps 28% in 9MFY26
MG News | April 29, 2026 at 03:32 PM GMT+05:00
April 29, 2026 (MLN): Air Link Communication Limited (PSX:
AIRLINK) reported a strong 28% increase in its consolidated net profit for the
nine months ended March 31, 2026, reaching Rs3.65bn compared to Rs2.85bn in the
corresponding period last year.
Reflecting this robust bottom-line expansion, the company's
basic and diluted earnings per share (EPS) jumped to Rs9.23 from Rs7.22 in
9MFY25.
The profit expansion occurred despite a noticeable
contraction in the top line. AIRLINK’s net revenue from contracts with
customers posted a 20% year-on-year decrease, falling to Rs68.37bn from
Rs85.55bn.
However, the company managed its direct costs exceptionally
well, with the cost of revenue dropping at a faster pace of 23% to settle at
Rs59.05bn.
Because the reduction in direct costs outpaced the revenue
decline, the company successfully expanded its core margins, driving gross
profit up by 11% to Rs9.32bn compared to Rs8.36bn in the prior year.
On the operational front, overheads escalated.
Administrative expenses rose by 30% to Rs1.47bn, while selling and distribution
costs increased by 20% to Rs344.05m.
Despite total operating expenses growing by 28%, the
absolute strength of the gross margin expansion pushed the operating profit up
by 8% to Rs7.51bn.
Below the operating line, AIRLINK found substantial
momentum. The company successfully slashed its finance costs by 23%, dropping
them to Rs2.41bn from a heavier Rs3.14bn burden in the same period last year.
Additionally, "other income" grew by an impressive
45% to Rs635.41m, which easily absorbed a 35% increase in other expenses
(Rs425.95m).
Bolstered by lower debt-servicing costs and expanding core
margins, the profit before income tax surged by 35% to Rs5.31bn.
Even after absorbing a significantly higher income tax
expense of Rs1.66bn (up 55% year-on-year), Air Link Communication successfully
secured its 28% leap in final net profit, comfortably closing the nine-month
period at Rs3.65bn.
|
STATEMENT OF PROFIT OR
LOSS FOR THE NINE MONTH ENDED MARCH 31, 2026 (Rs.) |
|||
|
Description |
2026 |
2025 |
change % |
|
Revenue
from contracts with customers - net |
68,370,157,507 |
85,552,054,859 |
-20% |
|
Cost
of revenue |
(59,047,973,146) |
(77,188,712,505) |
-24% |
|
Gross
profit |
9,322,184,361 |
8,363,342,354 |
11% |
|
Administrative
expense |
(1,467,767,822) |
(1,132,754,790) |
30% |
|
Selling
and distribution costs |
(344,049,007) |
(286,049,910) |
20% |
|
(Operating
expenses subtotal) |
(1,811,816,829) |
(1,418,804,700) |
28% |
|
Operating
profit |
7,510,367,532 |
6,944,537,654 |
8% |
|
Other
income |
635,411,251 |
437,077,731 |
45% |
|
Other
expense |
(425,947,057) |
(315,533,424) |
35% |
|
Finance
cost |
(2,411,901,836) |
(3,141,716,956) |
-23% |
|
Profit
before income tax |
5,307,929,890 |
3,924,365,005 |
35% |
|
Income
tax |
(1,661,206,545) |
(1,070,401,533) |
55% |
|
Profit
for the period |
3,646,723,345 |
2,853,963,472 |
28% |
|
Attributable
to Equity holders of the parent |
3,646,723,345 |
2,853,963,472 |
28% |
|
Earnings
per share - Basic and diluted |
9.23 |
7.22 |
28% |
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