PTCL’s group revenue reached PKR 103.8 billion in 2QCY26, a 65% year-on-year (YoY) increase. In 2QCY26, PTCL’s standalone revenue grew by 10% YoY, with a positive bottom-line profitability (aided by a PKR 2 billion dividend from PTML and lower pension obligations). As a result, consolidated earnings per share (EPS) in 2QCY26 was reported to be PKR 0.31. Cumulatively for 1HCY26 EPS stood at PKR 0.92.
A notable increase in admin costs was attributed to higher fuel prices due to global conflict impacts and the consolidation of Telenor Pakistan’s operation. Mobile ARPU is approximately PKR 305, while fixed-line ARPU is PKR 2,800 (with FTTH specifically at PKR 3,000 vs. DSL at PKR 2,100).
Management expects ARPU to improve as customers migrate from 4G to 5G, similar to the 3G-to-4G transition. PTCL, as a Significant Market Power (SMP), continues to engage with the regulator for justifiable price increases and believes there is further room for growth in dollar terms currently crossing $1.30. Management confirmed they are considering moving toward an asset-light model, but the process is in the early stages and requires board/stakeholder approval.
There is a regulatory four month notice period required before towers can be dismantled. This process will begin once the integrated network design is finalized and vendors are selected. Average operating cost per tower is estimated between PKR 250k to 300k per month. Approximately 50% of the tower estate is company-owned, with the remainder leased. In June 2026, the Islamabad High Court approved the scheme of arrangement for the amalgamation of Telenor Pakistan into PTML. Both Ufone and Telenor brands are now operating under a single legal corporate entity (PTML) through a combined network. Combined customer base of PTML has reached 74.8 with 51.3 on 4G.
The segment operates approximately 25,000 towers. Management is currently selecting vendors to harmonize the network, as the two original companies used different vendors across various cities. The group secured a significant portion of the spectrum offered by the PTA in March 2026, establishing the largest spectrum holding in the country. Over 97 network sites have been upgraded to support 5G, focusing initially on hotspots in key markets.
The acquired spectrum is being utilized to strengthen 4G offerings in areas where 5G is not yet launched, ensuring a superior data experience across the entire footprint. The Flash Fiber subscriber base reached 900,000, with a goal of hitting the 1 million milestone shortly. 300,000 lines were deployed over the year. PTCL holds a 37% market share among tier-one FTTH operators. B2B segment is the fastest-growing pillar for PTCL, with business revenue growing 16% year-on-year. PTCL currently manages 60% of the country’s data capacity.
Going forward, management noted that despite the price increases, they have seen growth, which suggests that market elasticity is favorable and customer affordability is there. Management expressed strong confidence that ARPU will continue to improve every quarter and every year for at least the next few years. While acknowledging rumors regarding the acquisition of Easypaisa, management stated that any such activity would be disclosed through official market announcements. Fintech remains a critical radar item for growth.
Important Disclosures
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