Air Link Communication Limited reported a 31 percent surge in its consolidated net profit for the fiscal year ended June 30, 2026, reaching Rs6.23 billion compared to Rs4.75 billion in the preceding year. Reflecting this bottom line growth, basic and diluted earnings per share for the year expanded to Rs15.75, up from Rs12.01 in FY25. The primary catalysts behind the performance were significant gross margin expansion and reduced corporate income tax liabilities, which effectively offset top line sales compression during the year.
Consolidated net revenue from contracts with customers fell 14 percent year on year to Rs89.77 billion, down from Rs104.36 billion in FY25. However, direct input costs dropped 18 percent to Rs76.18 billion, enabling gross profit to jump 23 percent to Rs13.58 billion compared to Rs11 billion in the prior year. This combination of falling revenue alongside a sharper decline in costs allowed the company to expand its margins even as its top line contracted, a pattern that points to improved cost efficiency across its supply chain during the year.
On the operational front, overheads expanded to support distribution network scaling and administrative operations. Administrative expenses rose 31 percent to Rs1.44 billion, while selling and distribution costs surged 123 percent to Rs822.85 million, reflecting the company’s investment in expanding its reach even as overall revenue declined. Coupled with a 15 percent decline in other income to Rs760.29 million and a 64 percent increase in other operating expenses to Rs453.34 million, operating profit still grew by 19 percent to Rs11.32 billion, showing that the gains from margin expansion were large enough to absorb these rising costs elsewhere in the business.
Below the operating line, Air Link Communication absorbed higher borrowing charges, with finance costs expanding 11 percent to Rs4.38 billion, up from Rs3.94 billion in FY25. Despite higher debt servicing outlays, profit before taxation grew 17 percent to Rs7.25 billion. The company also benefited from a 30 percent reduction in corporate income tax outlays, which fell to Rs1.02 billion for the year, down from Rs1.46 billion in FY25. Supported by the expansion in gross profits and reduced tax charges, Air Link Communication closed the fiscal year with a net profit of Rs6.23 billion, marking a strong overall improvement in profitability despite a decline in overall sales during FY26.
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