Pakistan Telecommunication Company Limited (PTC) reported a net loss of Rs9.75 billion for the fiscal year ended December 31, 2025, narrowing 32 percent compared to a loss of Rs14.39 billion in the previous year, reflecting improvements in operational efficiency and cost management. The company’s loss per share decreased to Rs1.91 from Rs2.82 during the same period, signaling progress toward profitability despite remaining in the red.
The telecommunications giant achieved a 12 percent year-on-year revenue increase, generating Rs251.73 billion in 2025 compared to Rs224.26 billion in 2024. This growth highlights solid top-line performance amid a challenging sector environment. Cost of services rose only marginally by 1 percent to Rs167.76 billion from Rs166.86 billion, enabling gross profit to jump 46 percent to Rs83.98 billion from Rs57.40 billion in the prior year. Consequently, the gross profit margin improved significantly to 33.4 percent from 25.6 percent, underlining enhanced operational efficiency and effective cost control.
Despite stronger gross margins, the company posted a negative net profit margin of -3.9 percent in FY2025, an improvement from -6.4 percent last year. Administrative and general expenses declined slightly by 1 percent to Rs32.61 billion from Rs32.86 billion, demonstrating disciplined expense management. Selling and marketing costs increased 4 percent to Rs13.88 billion, reflecting continued investment in market outreach.
A major factor impacting profitability was the allowance for expected credit losses, which surged to Rs18.14 billion, up 2.5 times from Rs5.12 billion in FY2024. This significant provisioning charge heavily weighed on net results, offsetting operational gains. However, operating profit rose more than twofold to Rs19.35 billion from Rs6.12 billion, showing the company’s resilience and improved underlying business performance.
Other income declined 17 percent to Rs21.15 billion from Rs25.62 billion, while finance costs and other expenses fell 11 percent to Rs46.66 billion from Rs52.63 billion, offering some relief from borrowing costs. Loss before tax narrowed 29 percent to Rs14.81 billion from Rs20.90 billion in FY2024. An income tax credit of Rs5.07 billion, down 22 percent from Rs6.50 billion in the previous year, further contributed to reducing the net loss.
The consolidated financials reflect a complex interplay of rising revenue, operational efficiencies, and higher provisioning requirements. While the company continues to face challenges from credit losses and a negative net margin, the improvement in gross margins, effective expense management, and rising operating profits indicate a path toward stabilization and future profitability.
Analysts suggest that PTC’s focus on managing service costs, improving operational efficiency, and addressing credit risk could help further narrow losses in upcoming periods. The company’s ability to sustain revenue growth while controlling expenses will be critical to achieving positive net results, especially as the telecom sector in Pakistan continues to expand digital infrastructure and service offerings.
PTC’s FY2025 performance highlights the resilience of Pakistan’s telecommunications sector, balancing top-line growth and operational improvements with careful management of provisioning and financing costs, positioning the company for potential recovery in profitability in the coming years.
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