Air Link Communication Limited (AIRLINK) announced its financial results for 1HFY26, posting a profit after tax (PAT) of Rs. 3,052 million (EPS: Rs. 7.72) compared to Rs. 2,319 million (EPS: Rs. 5.87) in 1HFY25, reflecting strong year-on-year (YoY) growth.
On a quarterly basis, PAT for 2QFY26 stood at Rs. 1,469 million (EPS: Rs. 3.72), down 1 percent YoY.
According to Arif Habib Limited (AHL), the slight decline in quarterly profitability was primarily due to lower volumetric sales, which reduced net revenue, coupled with higher finance costs.
Net sales for 1HFY26 fell 15 percent YoY to Rs. 48,771 million, while quarterly topline for 2QFY26 contracted 31 percent YoY to Rs. 24,369 million. The decline in revenue was largely driven by reduced volumetric sales. Locally manufactured device volumes reached 7.43 million units in 2QFY26, down 14 percent YoY, as higher tax rates weighed on demand for local devices.
Gross profit margin improved to 14.9 percent in 1HFY26 (9.5 percent in the same period last year) and 16 percent in 2QFY26 (9.2 percent prior year), supported by the sale of existing inventory purchased at lower costs and higher-margin TV sales, according to channel checks. Other income amounted to Rs. 113 million in 2QFY26, compared with Rs. 133 million in the same quarter last year, reflecting lower interest rates.
Finance costs increased 9 percent YoY to Rs. 1,122 million in 2QFY26, driven by higher short-term borrowings, which rose to Rs. 29,324 million in December 2025. The company reported an effective tax rate of 27.1 percent in 2QFY26, up from 18.8 percent in the same period last year.
AHL maintains a “BUY” stance on AIRLINK, with the stock currently trading at FY26 and FY27 price-to-earnings multiples of 8.9x and 6.8x, respectively.