Air Link Communication Limited (PSX: AIRLINK) posted a 36 percent decline in its consolidated net profit for the first quarter of fiscal year 2026-27 (FY27), ending 30 September 2026. Net profit came in at Rs1.02 billion, compared with Rs1.58 billion in the same period last year. Basic and diluted earnings per share (EPS) for the three months fell 36 percent to Rs2.58, down from Rs4.01 a year earlier. The fall in earnings was mainly the result of a 7 percent decline in revenue combined with pressure on margins, and Mettis said the operating costs of the company also rose during the quarter because of higher operational activity.
Revenue from contracts with customers fell to Rs22.81 billion from Rs24.40 billion in the first quarter of last year. Cost of revenue declined by 6 percent to Rs19.85 billion from Rs21.01 billion, but it did not fall as fast as sales, so gross profit dropped 13 percent year on year to Rs2.96 billion from Rs3.39 billion. The gross margin narrowed to 12.97 percent from 13.88 percent. Operating expenses grew in the same period, with administrative expenses rising 25 percent to Rs387.47 million and selling and distribution costs jumping 41 percent to Rs97.79 million. Together these overheads rose 28 percent to Rs485.26 million, which pushed down the profit that the business earned from its day-to-day operations.
Other income fell 41 percent to Rs185.04 million from Rs315.76 million, which added to the pressure on the bottom line. Operating profit contracted 18 percent to Rs2.47 billion, compared with Rs3.01 billion in the corresponding period of the previous fiscal year. Below the operating line, other expenses rose 11 percent to Rs139.02 million, and finance costs increased 19 percent to Rs1.16 billion from Rs968.22 million, so borrowing costs took a larger share of operating profit than they did a year ago. As a result, profit before tax decreased 39 percent to Rs1.36 billion from Rs2.23 billion, and the company recorded a lower tax charge of Rs345.03 million, which was 47 percent below the Rs646.63 million paid in the same quarter last year.
The weaker quarter follows a stronger year for the company. Mettis reported earlier that Air Link’s profit for FY26 had jumped 31 percent, which means that the latest figures reverse part of that growth. The company has also announced plans to begin electric bike manufacturing under its AirV brand, according to an earlier Mettis report, although the first quarter results do not say whether that business contributed to revenue or costs during the period. The results announcement does not explain why revenue declined, whether the fall came from lower sales volumes or lower prices, or what the management expects for the rest of the fiscal year, so the reasons behind the fall in sales will need to come from the company’s directors’ report or an analyst briefing.
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