Air Link Communication’s Profit Rises 88% to Rs. 1.58 Billion in 1QFY26

Air Link Communication Limited (AIRLINK) reported a profit after tax (PAT) of Rs. 1.58 billion for the first quarter of fiscal year 2026, translating into earnings per share (EPS) of Rs. 4.01, up 88% year-over-year from Rs. 842 million (EPS: Rs. 2.13) recorded in the same period last year. However, quarterly profit declined 16% compared to the previous quarter. Alongside the results, the company announced a cash dividend of Rs. 2.0 per share for the quarter. Net revenue rose 11% year-over-year to Rs. 24.40 billion, compared to Rs. 22.05 billion in the same period last year. The increase was attributed to a low base effect, as local manufacturing units in the mobile phone industry had produced only 5.4 million units during the corresponding period last year. On a quarterly basis, revenue grew 30%, according to a report by Arif Habib Ltd. Gross margins improved to 13.9% in 1QFY26, up from 9.8% a year earlier, as higher prices helped offset the impact of rising finance costs. On a quarterly basis, margins remained steady at 13.9% compared to 14.1% in the previous quarter. Other income climbed 50% year-over-year to Rs. 316 million, supported by higher returns on short-term investments. However, it fell 29% quarter-over-quarter due to a reduction in these investments. Finance costs increased 42% year-over-year to Rs. 968 million, driven by higher short-term borrowings and increased inventory levels. The company recorded an effective tax rate of 29% for the quarter, compared to 31.4% in the same period last year and 17% in the preceding quarter.