Pakistan Telecommunication Company Limited (PTCL) delivered a significant improvement in its consolidated financial performance during the first quarter of 2026, moving back into profit as revenues and operating results strengthened substantially.
According to the company’s unaudited financial results for the three months ended March 31, 2026, consolidated revenue rose to Rs97.85 billion, compared with Rs61.85 billion in the same period last year. This represents an increase of around 58% year on year.
The strong revenue growth also translated into a sharp improvement in gross profit. Consolidated gross profit increased to Rs34.76 billion, up from Rs19.97 billion a year earlier. The company reported an operating profit of Rs16.11 billion, compared with just Rs2.43 billion in the first quarter of 2025.
PTCL Group Swings Back Into Profit
One of the most notable developments was the group’s return to profitability. PTCL Group posted a profit before tax of Rs5.19 billion for the quarter, compared with a loss before tax of Rs5.54 billion in the corresponding period of 2025.
After taxation of Rs2.12 billion, the group recorded a net profit of Rs3.07 billion, reversing the Rs3.97 billion loss reported in the same quarter last year. Earnings per share also improved to Rs0.60, compared with a loss per share of Rs0.78 previously.
The improvement was supported by a substantial rise in other income, which reached Rs16.11 billion, compared with Rs2.43 billion in the previous year’s quarter. At the same time, finance costs and other expenses stood at Rs14.87 billion.
Standalone PTCL Performance Remains Under Pressure
While the consolidated group posted a strong turnaround, PTCL’s standalone results showed a different picture.
Standalone revenue increased to Rs31.52 billion from Rs29.60 billion in the first quarter of 2025, while gross profit improved to Rs9.27 billion from Rs8.55 billion. However, higher operating and finance costs meant that profit after tax declined to Rs902.85 million, compared with Rs1.18 billion a year earlier.
Standalone earnings per share consequently fell to Rs0.18 from Rs0.23.
Stronger Operating Cash Generation
The group’s cash-flow position also showed a notable improvement. Net cash generated from operating activities reached Rs47.16 billion during the quarter, compared with only Rs1.27 billion in the same period of 2025.
The company continued to invest heavily, with Rs12.29 billion spent on property and equipment and another Rs4.01 billion on intangible assets. Net cash used in investing activities amounted to Rs20.92 billion.
Despite positive operating cash generation, financing activities consumed Rs24.31 billion, while cash and cash equivalents at the end of the quarter stood at negative Rs30.80 billion.
No Dividend or Other Corporate Action
For the quarter ended March 31, 2026, PTCL’s Board of Directors recommended no cash dividend, bonus shares, right shares or other entitlement/corporate action. The board meeting was held on April 21, 2026, according to the company’s filing to the Pakistan Stock Exchange.
A Strong Start for the PTCL Group
Overall, PTCL Group’s first-quarter results point to a major improvement in its consolidated business performance. The sharp increase in revenue, stronger gross profit, substantially higher operating profit and return to net profitability mark a significant change from the losses recorded in the first quarter of 2025.
However, the results also highlight differences between the group and the parent company, with standalone PTCL reporting lower earnings despite modest revenue growth. The group’s strong operating cash generation and continued investment in property, equipment and intangible assets will remain important factors as the company moves through the rest of 2026.
