Air Link Reports 88% Profit Surge to Rs. 1.58 Billion in Q1 FY26

Air Link Communication Limited (AIRLINK) kicked off fiscal year 2026 with a strong performance, reporting a profit after tax (PAT) of Rs. 1.58 billion in the first quarter (1QFY26). The result marks an 88% year-over-year (YoY) increase compared to Rs. 842 million earned in the same period last year.

The company’s earnings per share (EPS) also jumped to Rs. 4.01, up from Rs. 2.13 a year earlier. However, quarterly profit dipped 16% compared to the previous quarter.

Alongside its robust financial results, Air Link announced a cash dividend of Rs. 2 per share for the quarter.

Revenue Jumps 11% Year-over-Year

Air Link’s net revenue climbed 11% YoY to Rs. 24.40 billion, compared to Rs. 22.05 billion in the same period last year. The growth was mainly driven by a low base effect, as local mobile manufacturing units had produced only 5.4 million devices during the same quarter last year.

According to a report by Arif Habib Ltd, revenue surged 30% on a quarter-over-quarter (QoQ) basis.

The company’s gross margin improved to 13.9%, up from 9.8% in 1QFY25. Air Link said that higher product prices helped offset the impact of increasing finance costs. Every quarter, margins remained stable at 13.9%, compared to 14.1% in the previous quarter.

Meanwhile, other income rose 50% YoY to Rs. 316 million, mainly due to better returns on short-term investments. However, it fell 29% QoQ as the company reduced these investments.

Air Link Finance Costs Rise 42%

Air Link’s finance costs jumped 42% YoY to Rs. 968 million, primarily due to higher short-term borrowings and increased inventory levels.

The company’s effective tax rate stood at 29%, lower than 31.4% in the same quarter last year but higher than 17% in the preceding quarter.

Despite higher financing expenses, Air Link Communication delivered a solid start to FY26, supported by strong sales growth, improved margins, and effective cost management. The company’s consistent performance highlights its growing role in Pakistan’s mobile phone manufacturing and distribution sector.