Karachi: Air Link Communication Ltd. (AIRLINK) has reported a decline in revenue for the fiscal year 2025, attributing the downturn to the imposition of an 18% GST from July 2024, which has impacted mobile phone sales. Despite the reduction in topline earnings, the company has achieved improved gross margins, reaching 10.6% in FY25 compared to 7.5% in the same period last year.
During an analyst briefing, AIRLINK revealed that its earnings for FY25 stood at PkR4.7 billion, slightly up from PkR4.6 billion in the previous year. The company noted that the rise in margins was driven by better pricing from principals, product mix, and operational efficiencies. For the first quarter of FY26, margins increased to 13.9% from 9.8% in the corresponding period last year, with expectations for similar performance in the future.
In a strategic move, AIRLINK has partnered with Acer to introduce the e10 laptops, with the first batch of 10,000 units expected to arrive by November 2025. The company plans to import completely built units for local distribution, taking advantage of the current duty benefits over CKD imports.
The company is also constructing a new manufacturing facility in the Sundar Green Special Economic Zone, slated for completion by December 2025. This facility will benefit from tax exemptions due to its strategic location within the special economic zone.
AIRLINK is set to diversify into the home appliance market through a partnership with a well-reputed Chinese brand, initially focusing on washing machines, air conditioners, and refrigerators.
The company's management highlighted that Xiaomi's electric vehicle (EV) has seen significant demand in China, leading to a focus on the domestic market. However, AIRLINK is exploring the introduction of a Chinese EV brand to Pakistan through a joint venture model and is considering opportunities in the EV bike segment.
In collaboration with the government, AIRLINK is working on export-related policies for mobile phones, aiming to enhance utilization and reduce costs if these initiatives are successfully implemented.
Additionally, the company plans to launch three new stores in Dolmen Mall, Lahore, expanding its retail footprint.
The analyst briefing concluded with a note from AKD Securities Limited, indicating that this scrip is not part of their formal coverage.