Air Link Posts Just Rs. 3.6 Billion Profit for 9 Months As Sales Plummet

Air Link Communication Limited (PSX: AIRLINK) reported consolidated earnings of Rs. 3.65 billion (EPS: Rs. 9.23) for the first nine months of FY26, reflecting a 28 percent year-on-year (YoY) increase.

However, the company’s third-quarter results showed a significant slowdown. Air Link posted 3QFY26 profit of Rs. 595 million (EPS: Rs. 1.50), representing an 11 percent YoY increase but a steep 60 percent decline quarter-on-quarter (QoQ), as sales volumes weakened and margins came under pressure.

Topline Securities said the quarterly performance came in below market expectations, mainly due to lower-than-anticipated revenues and reduced gross profitability.

Net sales during the quarter stood at Rs. 19.6 billion, falling 31 percent YoY and 20 percent compared to the previous quarter.

Reduced manufacturing activity amid inventory accumulation contributed to the decline. In addition, geopolitical tensions disrupted sea shipments, causing logistical delays that weighed on sales.

Gross margins contracted to 10 percent in 3QFY26, compared with 16 percent in the previous quarter, largely due to a shift in product sales mix.

Despite operational challenges, finance costs dropped sharply, declining 77 percent YoY and 71 percent QoQ to Rs. 322 million, even as short-term borrowings increased.

Other income improved significantly, reaching Rs. 207 million during the quarter, nearly doubling compared to last year and rising 83 percent from the previous quarter.

The company’s effective tax rate increased to 44 percent in 3QFY26, compared to 39 percent in 3QFY25 and 27 percent in the previous quarter, bringing the cumulative tax rate for 9MFY26 to 31 percent.