⚡ Flash Summary

Airlink Communication Ltd. reported a decrease in net sales for FY 2025 compared to FY 2024, but experienced significant growth in the first quarter of September 2025. Full year net sales decreased by 19.5% to PKR 104,379 million, while Q1 sales increased by 10.7% to PKR 24,402 million. Profitability metrics such as gross profit and operating profit also showed improvement in Q1 2025. The company is expanding operations with a new production facility and partnerships.

📌 Key Takeaways

• 📉 Full year net sales decreased by 19.5% from PKR 129,742 million (FY 2024) to PKR 104,379 million (FY 2025).
• 📈 Gross profit increased by 13.9%, from PKR 9,667 million to PKR 11,014 million.
• ⬆️ GP Margin increased significantly from 7.5% to 10.6% year over year.
• ⬆️ Operating profit rose by 12.4% to PKR 9,544 million.
• ⬆️ Operating margin expanded from 6.5% to 9.1%.
• ⬆️ Profit after tax showed a slight increase of 2.6%, reaching PKR 4,747 million.
• ⬆️ Net margin improved from 3.6% to 4.5%.
• ⬆️ Earnings per share increased by 2.6% to PKR 12.01.
• ⬆️ Dividend per share grew by 7.7% to PKR 6.5.
• 📈 First quarter (Sept 2025) net sales increased by 10.7% to PKR 24,402 million compared to PKR 22,052 million in Sept 2024.
• ⬆️ Q1 gross profit surged by 56.1% to PKR 3,387 million.
• ⬆️ Q1 operating profit increased dramatically by 68.5% to PKR 3,008 million.
• ⬆️ Q1 profit after tax jumped by 88.0% to PKR 1,583 million.
• ⬆️ Q1 earnings per share increased by 88.3% to PKR 4.01.
• 🏭 Expansion plans include a new production facility at Sundar Green Special Economic Zone in Lahore.

🎯 Investment Thesis

Given the mixed performance, a HOLD recommendation is appropriate. While the FY 2025 revenue decline is concerning, the Q1 2025 results and expansion plans indicate potential for future growth. A price target of PKR 165, with a time horizon of 12 months, is based on the expectation that the company will successfully execute its expansion plans and improve sales.