Airlink Communication profit jumps 32% in 1HFY26

February 25, 2026 (MLN): Airlink Communication Limited (PSX:AIRLINK) reported a net profit of Rs3.05bn for the half year ended December 31, 2025, a 32% increase from the Rs2.32bn profit recorded in the same period last year.

The company's earnings per share rose to Rs7.72 from Rs5.87 in the corresponding period of the previous year.

The company's revenue from contracts with customers declined 15% year-on-year to Rs48.77bn from Rs57.31bn.

Cost of revenue decreased 20% to Rs41.49bn from Rs51.89bn, resulting in a gross profit of Rs7.28bn, up 34% from Rs5.43bn in the prior period.

The gross profit margin improved significantly to 14.9% from 9.5% in H1 FY2025, indicating substantially enhanced operational efficiency and better product mix management.

The net profit margin stood at 6.3% compared to 4% in the same period last year, reflecting the company's improved overall profitability.

Administrative expenses increased 40% to Rs945.9m from Rs675.1m, while selling and distribution costs rose 21% to Rs229.7m from Rs189.1m, reflecting continued investments in sales infrastructure and operations.

Operating profit grew 34% to Rs6.11bn from Rs4.56bn in H1 FY2025, demonstrating strong operational leverage from the improved gross margins.

Other income increased 25% to Rs428.6m from Rs343.3m, while other expenses rose 38% to Rs201.6m from Rs146.6m.

Finance costs increased 22% to Rs2.09bn from Rs1.72bn, reflecting higher borrowing levels to support working capital requirements.

Profit before income tax reached Rs4.24bn, up 39% from Rs3.05bn in the prior period.

The company recorded an income tax expense of Rs1.19bn, up 64% from Rs726.9m in the corresponding period last year.

The significantly higher tax burden moderated the profit growth to 32% at the net level despite the 39% increase in pre-tax profit.

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