Avanceon Limited, listed on the Pakistan Stock Exchange under the ticker symbol AVN, has posted a 44.5 percent year-on-year increase in profit after tax for the first quarter ended March 31, 2026, with earnings reaching Rs64.55 million compared to Rs44.68 million in the same period last year. The result reflects a strong top-line performance driven by accelerating revenue growth, though the quarter also saw a notable rise in operating costs that partially offset the gains from higher sales volumes.
On the revenue front, Avanceon recorded a 62.3 percent year-on-year growth in net sales, rising to Rs686.67 million from Rs423.10 million in the corresponding period of the prior year. Cost of revenue, however, also increased significantly by 69.3 percent year-on-year to Rs481.77 million, resulting in a 47.9 percent year-on-year increase in gross profit to Rs204.90 million. Operating expenses showed a notable uptick during the period, with administrative and selling expenses rising 27.8 percent to Rs115.46 million, while other charges surged sharply by 742 percent to Rs18.25 million. Other income increased marginally by 1 percent to Rs45.03 million, while total operating expenses on a net basis increased 84.9 percent year-on-year to Rs88.68 million.
Profit from operations grew 28.3 percent year-on-year to Rs116.22 million, while below the operating line, finance costs increased 12.9 percent to Rs39.35 million. Profit before tax stood at Rs76.87 million, up 37.97 percent year-on-year, with taxation rising 11.7 percent to Rs12.32 million, bringing profit after tax to Rs64.55 million for the period. Earnings per share rose to Rs0.15 versus Rs0.11 in the same quarter last year, while diluted earnings per share also improved to Rs0.15 compared to Rs0.10. Overall, Avanceon delivered a strong bottom-line performance driven by higher revenues and improved operating profitability, though the sharp increase in other charges and the faster growth in cost of revenue relative to sales remain areas that investors and analysts are likely to monitor closely as the company moves through the remainder of fiscal year 2026.
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