July 28, 2026 (MLN): Pakistan Telecommunication Company Limited (PSX: PTC) reported a massive financial turnaround for the six months ended June 30, 2026 (1HCY26), posting a consolidated net profit of Rs4.67bn.
This marks a complete recovery from the severe net loss of Rs9.90bn recorded in the corresponding period last year.
Reflecting this sharp bottom-line recovery, the company's basic and diluted earnings per share (EPS) turned positive, reaching Rs0.92 compared to a loss per share of Rs1.94 in 1HCY25.
The primary driver behind this impressive return to profitability was a stellar top-line expansion combined with strong gross margin growth.
PTC’s revenue posted a massive 62% year-on-year surge, rising to Rs201.67bn from Rs124.60bn.
Although the cost of services grew at a fast pace of 55% to Rs129.78bn to support the higher activity, the sheer volume of revenue expansion propelled the gross profit up by 76%, reaching Rs71.88bn compared to Rs40.78bn in 1HCY25.
On the operational front, overheads expanded to accommodate the business scale-up. Administrative and general expenses rose by 78% to Rs29.81bn, while selling and marketing expenses grew by 38% to Rs10.09bn.
However, the company received a major boost from expected credit losses, booking a positive reversal of Rs27.32m a dramatic turnaround from the heavy Rs6.89bn allowance hit absorbed last year. Supported by these gains, the operating profit more than tripled, soaring by 226% to Rs32.00bn.
Below the operating line, PTC found additional relief in non-operating items.
Past service pension costs plummeted by 94% to Rs355.14m from a massive Rs5.89bn drag last year.
Finance costs and other expenses remained a heavy burden, increasing by 20% to Rs30.49bn, while other income saw a mild 6% dip to Rs8.27bn.
Nevertheless, the immense operational gains completely outweighed debt-servicing pressures, driving the profit before tax to Rs9.43bn (up from a pre-tax loss of Rs12.71bn).
The company absorbed an income tax expense of Rs4.76bn for the period (compared to a tax credit of Rs2.81bn last year). Despite this tax outlay, Pakistan Telecommunication Company Limited securely closed the half-year period with its final net profit at Rs4.67bn, triumphantly stepping out of the red.
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CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE SIX MONTHS ENDED JUNE 30, 2026 (Rs.000) |
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Description |
2026 |
2025 |
change % |
|
Revenue |
201,665,206 |
124,599,106 |
61.9% |
|
Cost of services |
(129,784,832) |
(83,822,789) |
54.8% |
|
Gross profit |
71,880,374 |
40,776,317 |
76.3% |
|
Administrative and general expenses |
(29,809,151) |
(16,736,288) |
78.1% |
|
Selling and marketing expenses |
(10,093,540) |
(7,328,108) |
37.7% |
|
(Allowance) / reversal for expected credit losses |
27,315 |
(6,886,280) |
|
|
(Operating expenses subtotal) |
(39,875,376) |
(30,950,676) |
28.8% |
|
Operating profit |
32,004,998 |
9,825,641 |
225.7% |
|
Past service cost - pension |
(355,144) |
(5,890,142) |
-94.0% |
|
Other income |
8,270,836 |
8,836,302 |
-6.4% |
|
Finance costs and other expenses |
(30,488,382) |
(25,479,977) |
19.7% |
|
Profit / (loss) before tax |
9,432,308 |
(12,708,176) |
|
|
Income tax |
(4,764,182) |
2,810,357 |
|
|
Profit / (loss) for the period |
4,668,126 |
(9,897,819) |
|
|
Earnings / (loss) per share - basic and diluted (Rupees) |
0.92 |
(1.94) |
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