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Aftab Maken
ISLAMABAD: Pakistan Telecommunication Company Limited reported a sharp rise in revenue and profit during the first half of 2026, but escalating operating costs, finance charges and heavy cash outflows remain major concerns.
Pakistan Telecommunication Company Limited posted a consolidated profit of Rs 4.67 billion for the six months ended June 2026, reversing a Rs 9.9 billion loss recorded in the same period last year. However, the company’s financial statements show several pressure points, including higher administrative costs, finance expenses and significant financing outflows.
PTCL Group’s consolidated revenue increased to Rs 201.67 billion during the first half of 2026 from Rs 124.6 billion a year earlier. Despite the stronger top line, administrative and general expenses jumped to Rs 29.81 billion from Rs 16.74 billion, while selling and marketing expenses rose to Rs 10.09 billion from Rs 7.33 billion.
The company also reported Rs30.49 billion in finance costs and other expenses during the period. That figure was significantly higher than the Rs25.48 billion recorded during the corresponding period of 2025, adding pressure on profitability despite improved operating performance.
PTCL’s operating profit rose substantially to Rs 32 billion in the first half from Rs 9.83 billion a year earlier. However, the improvement at the operating level was partly absorbed by financing costs, with profit before tax reaching Rs 9.43 billion compared with a Rs 12.71 billion loss previously.
The company also recorded an allowance for expected credit losses of Rs 6.89 billion during the six-month period. This compares with a small reversal reported during the corresponding period last year, indicating continued pressure from credit-related exposures.
Cash flows also highlight the financial challenges facing the group. Net cash generated from operating activities increased to Rs 50.13 billion from Rs 28.15 billion, but financing activities consumed Rs 48.06 billion during the period.
The group reported a net decrease of Rs 9.43 billion in cash and cash equivalents during the first half. Cash and cash equivalents stood at negative Rs 42.16 billion at the end of June, although the position was an improvement from negative Rs 47.25 billion a year earlier.
Finance costs paid during the period reached Rs 21.43 billion, compared with Rs 19.16 billion a year earlier. PTCL also paid Rs 11.03 billion toward lease principal and another Rs 4.87 billion in lease interest, adding to its financing burden.
The company’s unconsolidated results also showed improvement, with profit after tax reaching Rs 3.63 billion compared with a Rs 3.26 billion loss in the first half of 2025. Unconsolidated revenue increased to Rs 63.75 billion from Rs 58.91 billion.
PTCL’s board recommended no cash dividend, bonus shares or right shares for the quarter ended June 2026. The absence of shareholder distributions reflects the company’s continuing focus on financial requirements despite the return to profitability.
The results point to stronger revenues and operating performance, but rising expenses and financing obligations remain key risks. PTCL’s ability to control costs, strengthen cash generation and manage its debt burden will remain critical to sustaining the recent recovery.
