PTC posts massive turnaround, reports Rs4.7bn profit in 1HCY26

July 28, 2026 (MLN): Pakistan Telecommunication Company Limited (PSX: PTC) reported a massive financial turnaround for the six months ended June 30, 2026 (1HCY26), posting a consolidated net profit of Rs4.67bn.

This marks a complete recovery from the severe net loss of Rs9.90bn recorded in the corresponding period last year.

Reflecting this sharp bottom-line recovery, the company's basic and diluted earnings per share (EPS) turned positive, reaching Rs0.92 compared to a loss per share of Rs1.94 in 1HCY25.

The primary driver behind this impressive return to profitability was a stellar top-line expansion combined with strong gross margin growth.

PTC’s revenue posted a massive 62% year-on-year surge, rising to Rs201.67bn from Rs124.60bn.

Although the cost of services grew at a fast pace of 55% to Rs129.78bn to support the higher activity, the sheer volume of revenue expansion propelled the gross profit up by 76%, reaching Rs71.88bn compared to Rs40.78bn in 1HCY25.

On the operational front, overheads expanded to accommodate the business scale-up. Administrative and general expenses rose by 78% to Rs29.81bn, while selling and marketing expenses grew by 38% to Rs10.09bn.

However, the company received a major boost from expected credit losses, booking a positive reversal of Rs27.32m a dramatic turnaround from the heavy Rs6.89bn allowance hit absorbed last year. Supported by these gains, the operating profit more than tripled, soaring by 226% to Rs32.00bn.

Below the operating line, PTC found additional relief in non-operating items.

Past service pension costs plummeted by 94% to Rs355.14m from a massive Rs5.89bn drag last year.

Finance costs and other expenses remained a heavy burden, increasing by 20% to Rs30.49bn, while other income saw a mild 6% dip to Rs8.27bn.

Nevertheless, the immense operational gains completely outweighed debt-servicing pressures, driving the profit before tax to Rs9.43bn (up from a pre-tax loss of Rs12.71bn).

The company absorbed an income tax expense of Rs4.76bn for the period (compared to a tax credit of Rs2.81bn last year). Despite this tax outlay, Pakistan Telecommunication Company Limited securely closed the half-year period with its final net profit at Rs4.67bn, triumphantly stepping out of the red.

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