Karachi: Air Link Communication (AIRLINK) reported a notable increase in its financial earnings for the fiscal year 2026, with consolidated earnings hitting Rs6.2 billion, marking a 31% increase year-on-year. The company's earnings per share (EPS) for the fourth quarter of FY26 rose significantly to Rs6.53, up 36% from the previous year and four times higher than the previous quarter.

According to JS Global, AIRLINK's annual revenue decreased by 14% year-on-year to Rs89.77 billion, primarily due to a decline in mobile phone sales. However, the fourth quarter saw a boost in revenue, driven by the launch of Hisense sales. Gross margins improved to 20% in the fourth quarter, compared to 14% in the same period last year and 10% in the previous quarter, mainly due to higher margins from the newly introduced appliance division.

Selling and distribution expenses surged by 5.8 times year-on-year in the fourth quarter, attributed to distribution and installation costs of air conditioners. Finance costs also saw a considerable rise, nearly doubling year-on-year and increasing sixfold quarter-on-quarter to Rs1.97 billion in the fourth quarter. This was mainly due to a rise in short-term borrowing, which contributed to a total finance cost of Rs4.38 billion for FY26, as short-term debt increased by 44% year-on-year to Rs43 billion.

The effective tax rate for FY26 stood at 14%, a decrease from 23% in FY25 and 31% in the first nine months of FY26, owing to tax reversals from the recognition of a Deferred Tax Asset. JS Global maintains a positive outlook on AIRLINK, recommending a buy stance as the company trades at an FY26 adjusted price-to-earnings ratio of 7.9 times.