PTCL Group’s profit collapsed to just Rs. 62 million in the July–September 2026 quarter, even though group revenue jumped 61 percent to Rs. 102.7 billion and the combined Ufone–Telenor mobile base passed 76 million subscribers. The results, approved at a board meeting on 22 October 2026 and reported on 29 and 30 October, show a group growing fast on paper while one-off costs and a new levy ate almost all of its profit.
The Headline Numbers
All figures here are for PTCL Group on a consolidated basis, not standalone PTCL. Group revenue reached Rs. 102.7 billion, up 61 percent year on year from Rs. 63.7 billion, driven largely by bringing Telenor Pakistan into the group. Net profit came in at Rs. 62 million, or one paisa per share, against a loss of around Rs. 1.28 billion in the same quarter last year. For the first nine months of 2026, group profit stands at Rs. 4.73 billion, after Rs. 3.1 billion in the first quarter and about Rs. 4.67 billion for the first half.
Group EBITDA, a measure of operating earnings, rose 77 percent year on year to Rs. 36 billion. Excluding Telenor’s contribution, revenue growth was a more modest 8 percent.
Subscriber Growth Continues
The mobile business kept adding customers. The combined Ufone and Telenor base passed 76 million subscribers, with 1.5 million net additions in the quarter alone, roughly 40 percent of the industry’s net additions. The number of 4G users reached 52.6 million, and average revenue per user stood at around Rs. 315 per month, up about 6 percent from before the merger.
PTCL took control of Telenor Pakistan on 31 December 2025, and the merger won final court approval at the end of June 2026. Former Telenor customers now sit under Pak Telecom Mobile Ltd, the Ufone operating company.
Why Profit Collapsed
Management pointed to several large costs that hit the quarter:
- A new PTA levy of 0.5 US cents per minute on incoming international traffic, in effect from late in the second quarter, cost around Rs. 1.2 billion in the quarter and is described as recurring.
- Network closures in Azad Kashmir and Khyber Pakhtunkhwa cost around Rs. 1 billion in lost revenue.
- Merger consultancy for the PTML–Telenor integration cost around Rs. 900 million.
- UBank took a revenue hit of around Rs. 600 million from suspended markup income, though this was bottom-line neutral because of an offsetting improvement in expected credit losses.
Management estimated that without the levy, energy costs and interest and depreciation linked to the acquisition, profit would have been around Rs. 2.1 billion, or 41 paisa per share.
Integration Outlook
Network integration is complete in more than 20 cities, with a target of over 40 percent network consolidation by the end of 2026 and full consolidation in 2027. Towers are being moved into Orion Towers over the next four to six months, with a possible later transaction. Ufone’s 5G service is live in Karachi, Lahore and Islamabad, but only around 4 percent of handsets on the network are 5G-capable, so mass 5G use remains some way off.
The group also invested around Rs. 100 billion in the first nine months of 2026, including 5G spectrum and integration spending, plus Rs. 25 billion on fibre expansion.
Frequently Asked Questions
How much profit did PTCL Group make in July–September 2026?
Rs. 62 million, or one paisa per share, on a consolidated group basis.
How much did PTCL Group revenue grow?
Revenue rose 61 percent year on year to Rs. 102.7 billion, from Rs. 63.7 billion a year earlier, mainly because Telenor Pakistan is now consolidated into the group.
How many subscribers do Ufone and Telenor have combined?
More than 76 million, including 52.6 million 4G users, with average revenue per user of around Rs. 315 per month.
Why did profit fall so sharply?
A new PTA levy on incoming international calls cost around Rs. 1.2 billion, network closures in Azad Kashmir and Khyber Pakhtunkhwa cost around Rs. 1 billion in revenue, and merger consultancy cost around Rs. 900 million.
Is PTCL profitable for the full nine months of 2026?
Yes. Nine-month group profit stands at Rs. 4.73 billion, despite the weak third quarter.
When will the Ufone–Telenor integration finish?
Management targets over 40 percent network consolidation by the end of 2026 and full consolidation in 2027.
Conclusion
PTCL Group’s third quarter tells two stories at once: a mobile base past 76 million and revenue up 61 percent, set against a profit of just Rs. 62 million after levies, closures and merger costs. The subscriber momentum is real, but the payoff depends on finishing the integration and absorbing the new levy without further damage to earnings.
