Air Link Communication Limited (PSX: AIRLINK) has unveiled a comprehensive expansion strategy aimed at transforming its business landscape and diversifying operations across multiple segments. During its recent corporate briefing, the company announced plans to launch Pakistan’s first mono Apple retail store, initiate production of household goods and laptops, and relocate its primary manufacturing base to the tax-exempt Sundar Green Special Economic Zone (SEZ). The company aims to achieve Rs140 billion in revenue for FY26, a significant increase from Rs104 billion recorded in the previous fiscal year, driven by product diversification and operational efficiency improvements.
The relocation to the Sundar Green SEZ, expected to be completed by December 2025, is set to offer substantial cost and margin advantages through a ten-year tax exemption. The facility will focus on producing LED televisions and a range of household appliances as part of Airlink’s broader strategy to enter new product categories. Management confirmed that discussions are underway with leading global manufacturers, primarily from China’s top five appliance producers, to establish a joint venture for developing air conditioners, washing machines, and microwaves. While negotiations remain in progress, the move signals Airlink’s intention to become a key local player in the consumer electronics market.
In addition to the household segment, Airlink plans to achieve Rs8 billion in revenue from LED televisions and Rs2 to 4 billion from laptops during FY26. The company anticipates 10 to 15 billion rupees from its expanded smartphone production, contributing to its record sales target. Airlink’s laptop business alone is projected to reach 100,000 units in sales within the fiscal year. Complementing its physical retail expansion, Airlink will soon introduce its own e-commerce platform, AIRCART, designed to provide direct-to-consumer deliveries across Pakistan. Furthermore, a Xiaomi flagship store is set to open at Dolmen Mall Lahore, reinforcing the company’s strong retail presence in the consumer technology market.
Looking ahead to new mobility trends, Airlink is also exploring opportunities in electric vehicles. Initial plans include limited imports of 500 to 1,000 units to test market demand, along with the development of electric bikes tailored to local conditions. However, management clarified that e-scooters are not a current focus area. Operationally, the company expects to grow production by 20% in FY26, targeting 2.5 to 2.6 million smartphone units while maintaining gross margins around 14%, supported by improved pricing and retail optimization.
Financially, Airlink reported first-quarter FY26 earnings of Rs1.58 billion (EPS: Rs4.01), marking an 88% year-on-year increase but a 16% sequential decline due to flood-related sales disruptions in September. Revenue for the quarter stood at Rs24.4 billion, reflecting an 11% rise year-on-year and 30% quarter-on-quarter growth. The management anticipates that subsequent quarters will deliver Rs30 to Rs35 billion in sales as new product lines and retail operations scale up. Officials also hinted that if performance remains steady, shareholders could expect a potential dividend announcement in the near future. With multiple initiatives converging—from consumer electronics and e-commerce to electric vehicles—Airlink appears poised for a period of strong growth and strategic transformation in FY26.
Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem.
