Air Link Communication Limited (AIRLINK) announced its financial results for the first half of FY26, posting a profit after tax (PAT) of Rs. 3,052 million (EPS: Rs. 7.72), up strongly year-on-year (YoY) from Rs. 2,319 million (EPS: Rs. 5.87) in 1HFY25. On a quarterly basis, the company reported PAT of Rs. 1,469 million (EPS: Rs. 3.72) in 2QFY26, down 1 percent YoY, mainly due to lower sales volumes and higher finance costs.

Net sales for 1HFY26 declined 15 percent YoY to Rs. 48,771 million, with quarterly revenue in 2QFY26 falling 31 percent YoY to Rs. 24,369 million. The reduction was driven by weaker demand for locally manufactured devices, which totaled 7.43 million units in 2QFY26, down 14 percent YoY, amid higher taxes.

Gross profit margin improved to 14.9 percent in 1HFY26 (9.5 percent in the same period last year) and 16 percent in 2QFY26 (9.2 percent prior year), supported by the sale of existing lower-cost inventory and higher-margin TV sales. Other income stood at Rs. 113 million in 2QFY26, compared to Rs. 133 million last year, reflecting a decline in interest rates.

Finance costs increased 9 percent YoY to Rs. 1,122 million in 2QFY26, driven by higher short-term borrowings, which reached Rs. 29,324 million in December 2025. The effective tax rate rose to 27.1 percent in 2QFY26 from 18.8 percent in the same quarter last year.

The company maintains a “BUY” rating, with shares trading at FY26 and FY27 price-to-earnings multiples of 8.9x and 6.8x, respectively.