Pakistan Telecommunication Company Limited (PTC) has reported a strong financial turnaround for the first quarter of fiscal year 2026, posting a consolidated net profit of Rs 3.07 billion for the three months ended March 31, 2026. This marks a significant recovery compared to the net loss of Rs 3.97 billion recorded in the same period last year, reflecting improved operational performance and stronger revenue generation across its core telecom services. The earnings per share also moved into positive territory at Rs 0.60, compared to a loss per share of Rs 0.78 in the corresponding quarter of the previous year.
The company’s financial turnaround was primarily driven by a sharp increase in revenue, which rose by 58 percent year on year to Rs 97.85 billion. This growth was supported by increased demand for telecom services and improved business activity, allowing the company to expand its top line at a faster pace than its cost base. While the cost of services also increased by 51 percent to Rs 63.08 billion, the higher revenue growth resulted in a strong improvement in gross profit, which surged by 74 percent to Rs 34.76 billion.
Operational efficiency also played a key role in the improved financial results. Administrative and general expenses increased by 48 percent, while selling and marketing expenses rose by 60 percent, reflecting higher business activity and investment in customer acquisition and service expansion. However, a major contributor to the turnaround was a significant reversal in expected credit losses, compared to a heavy allowance recorded in the same period last year. This improvement helped push operating profit up sharply to Rs 16.11 billion, compared to Rs 2.43 billion in the previous year period.
Despite facing higher finance costs and reduced other income, PTC managed to maintain profitability at the pre tax level, reporting Rs 5.19 billion compared to a loss of Rs 5.54 billion last year. After accounting for taxation charges of Rs 2.12 billion, the company closed the quarter with a net profit of Rs 3.07 billion, reinforcing a broader recovery trend in Pakistan’s telecom sector as operators benefit from revenue expansion and improved credit performance.
Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem.
