April 21, 2026 (MLN): Pakistan Telecommunication Company Limited (PSX: PTC) staged a massive financial turnaround for the first quarter (three months) ended March 31, 2026, posting a consolidated net profit of Rs3.07bn.

This marks a dramatic recovery from the net loss of Rs3.97bn recorded in the corresponding period last year.

Reflecting this return to profitability, the company's earnings per share (EPS) swung to a positive Rs0.60, compared to a loss per share of Rs0.78 in Q1 2025.

The primary catalyst for this turnaround was robust top-line growth coupled with a significant drop in credit loss allowances.

 PTC's revenue surged by an impressive 58% year-on-year, reaching Rs97.85bn compared to Rs61.85bn.

The cost of services also rose by 51% to Rs63.08bn. Because top-line revenue expanded at a faster clip than direct service costs, the gross profit saw a massive 74% jump, settling at Rs34.76bn up from Rs19.97bn in the prior year.

On the operational front, routine overheads expanded significantly. Administrative and general expenses rose by 48% to Rs12.38bn, and selling and marketing expenses spiked 60% to Rs6.32bn.

However, the company benefited massively from a reversal in expected credit losses amounting to Rs52.69m.

This is a stark contrast to the heavy Rs5.22bn allowance for credit losses booked in the same period last year.

Fueled by the expanding gross margins and the absence of a heavy credit loss charge, the operating profit skyrocketed, reaching Rs16.11bn from just Rs2.43bn.

Below the operating line, PTC navigated mixed headwinds. Other income dropped 29% to Rs3.95bn, and finance costs and other expenses grew by 10% to Rs14.87bn.

Despite the rising debt-servicing costs, the sheer power of the operational turnaround completely wiped out the deficit, pushing the profit before tax into positive territory at Rs5.19bn (reversing a pre-tax loss of Rs5.54bn).

Ultimately, the company booked a taxation charge of Rs2.12bn (compared to a tax credit of Rs1.58bn last year), but the pre-tax gains comfortably absorbed the hit, cementing the Rs3.07bn net profit for the quarter.

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