Air Link Communication Limited (PSX: AIRLINK), a leading player in Pakistan’s technology sector, reported a stellar financial performance for the first quarter ended September 30, 2025, with net profit surging 88% driven by strong topline growth and significantly improved margins.
The company announced a consolidated profit after tax of Rs1.583 billion, a substantial increase from the Rs842 million recorded in the same period last year. Earnings per share (EPS) jumped to Rs4.01, up from Rs2.13 in the first quarter of FY25. Reflecting this strong performance, the Board of Directors has proposed an interim cash dividend of Rs2.00 per share.
The company’s impressive growth was fueled by a dual engine of higher sales and enhanced profitability. Consolidated revenue from contracts with customers saw a healthy 10.7% year-on-year increase, reaching Rs24.40 billion compared to Rs22.05 billion last year. This indicates sustained demand across its distribution, retail, and assembly segments.
A key highlight of the results was the remarkable improvement in profitability. The gross profit margin expanded to 13.88%, up from 9.84% in the same period last year. This 410-basis-point improvement suggests better product mix, pricing power, or more efficient cost management, leading to a gross profit of Rs3.387 billion, a 56% increase.
The company managed to grow its operating profit even faster than its gross profit, which surged 69% to Rs3.008 billion. This was achieved despite a slight increase in administrative expenses, as selling and distribution costs were well-controlled. A notable challenge was the 42% increase in finance costs, which rose to Rs968 million. This reflects a high-interest-rate environment and the company’s increased borrowing to fund its working capital and expansion, including the new manufacturing facility in Sundar.
The company’s financial position remains strong but shows signs of a strategic build-up and investment phase. Stock-in-trade increased significantly, and cash and bank balances decreased to Rs1.50 billion from Rs4.15 billion at the end of the last fiscal year. This, coupled with an increase in short-term borrowings, points towards significant investments in inventory to support future sales and the ongoing capital expenditure for expansion.
The company is actively investing in backward integration, highlighted by its new smartphone and smart TV manufacturing facilities and the under-construction plant in Sundar Industrial Estate. The integration of AI-driven systems into its manufacturing process, as mentioned in its report, positions it for future efficiency gains.
The management expressed confidence in its strategy, focusing on operational efficiency, product innovation, and expanding its market presence. The strong Q1 results, coupled with the declared dividend, signal robust health and a positive outlook for the company as it continues to capitalize on Pakistan’s growing demand for consumer technology.
