April 29, 2026 (MLN): Air Link Communication Limited (PSX: AIRLINK) reported a strong 28% increase in its consolidated net profit for the nine months ended March 31, 2026, reaching Rs3.65bn compared to Rs2.85bn in the corresponding period last year.

Reflecting this robust bottom-line expansion, the company's basic and diluted earnings per share (EPS) jumped to Rs9.23 from Rs7.22 in 9MFY25.

The profit expansion occurred despite a noticeable contraction in the top line. AIRLINK’s net revenue from contracts with customers posted a 20% year-on-year decrease, falling to Rs68.37bn from Rs85.55bn.

However, the company managed its direct costs exceptionally well, with the cost of revenue dropping at a faster pace of 23% to settle at Rs59.05bn.

Because the reduction in direct costs outpaced the revenue decline, the company successfully expanded its core margins, driving gross profit up by 11% to Rs9.32bn compared to Rs8.36bn in the prior year.

On the operational front, overheads escalated. Administrative expenses rose by 30% to Rs1.47bn, while selling and distribution costs increased by 20% to Rs344.05m.

Despite total operating expenses growing by 28%, the absolute strength of the gross margin expansion pushed the operating profit up by 8% to Rs7.51bn.

Below the operating line, AIRLINK found substantial momentum. The company successfully slashed its finance costs by 23%, dropping them to Rs2.41bn from a heavier Rs3.14bn burden in the same period last year.

Additionally, "other income" grew by an impressive 45% to Rs635.41m, which easily absorbed a 35% increase in other expenses (Rs425.95m).

Bolstered by lower debt-servicing costs and expanding core margins, the profit before income tax surged by 35% to Rs5.31bn.

Even after absorbing a significantly higher income tax expense of Rs1.66bn (up 55% year-on-year), Air Link Communication successfully secured its 28% leap in final net profit, comfortably closing the nine-month period at Rs3.65bn.

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