Airlink Communication Limited (PSX: AIRLINK) reported a net profit of Rs3.05 billion for the half year ended December 31, 2025, marking a 32% increase compared to Rs2.32bn recorded in the corresponding period last year. The performance reflects stronger margins and operational leverage, even as topline revenue declined during the period under review.
Earnings per share rose to Rs7.72 from Rs5.87 in the same period of the previous fiscal year, translating into a 32% increase in shareholder returns on a per-share basis. The improvement in profitability came despite a 15% year-on-year drop in revenue from contracts with customers, which stood at Rs48.77bn compared to Rs57.31bn in H1 FY2025.
The decline in revenue was offset by a sharper 20% reduction in cost of revenue, which fell to Rs41.49bn from Rs51.89bn. As a result, gross profit climbed 34% to Rs7.28bn, up from Rs5.43bn in the prior period. The gross profit margin improved significantly to 14.9%, compared to 9.5% a year earlier, signaling enhanced operational efficiency and improved product mix management.
The expansion in margins indicates a shift toward higher-yield segments and tighter cost controls across the company’s distribution and operations network. In a technology-driven distribution environment where margins are often under pressure, the improvement suggests more disciplined inventory management and pricing strategies.
Administrative expenses rose 40% year-on-year to Rs945.9 million from Rs675.1m, reflecting scaling costs and organizational expansion. Selling and distribution expenses also increased by 21% to Rs229.7m from Rs189.1m, pointing toward continued investment in sales infrastructure and operational capacity. Despite higher overheads, operating profit surged 34% to Rs6.11bn compared to Rs4.56bn in the same period last year, underlining strong operating leverage from improved gross margins.
Other income increased 25% to Rs428.6m from Rs343.3m, providing additional support to bottom-line performance. However, other expenses rose 38% to Rs201.6m from Rs146.6m, partially offsetting gains from non-core income streams.
Finance costs climbed 22% to Rs2.09bn, compared to Rs1.72bn in H1 FY2025, reflecting higher borrowing levels aimed at supporting working capital requirements. The elevated finance expense highlights the capital-intensive nature of distribution operations, particularly in a dynamic consumer electronics and mobile device market.
Profit before income tax reached Rs4.24bn, up 39% from Rs3.05bn in the corresponding period last year. However, the income tax expense increased sharply by 64% to Rs1.19bn from Rs726.9m. The higher tax burden moderated net profit growth, resulting in a 32% increase at the bottom line despite the stronger 39% rise in pre-tax earnings.
Overall, Airlink Communication Limited delivered a resilient half-year performance characterized by margin expansion, disciplined cost management, and sustained profitability growth. While revenue contracted year-on-year, the company’s ability to improve gross and net margins underscores operational adaptability within Pakistan’s evolving consumer technology and distribution landscape.
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