6 Reasons AirLink Deserves a Spot in Your Portfolio

AirLink Communication Ltd. (AIRLINK) is rapidly emerging as a powerhouse in Pakistan’s digital ecosystem. With a Dec’25 target price of PKR 273.3/share—a 67.8% upside from current levels, Foundation Securities has initiated coverage on the stock with an Outperform rating. But what makes Airlink a compelling investment story?

Here are six key catalysts driving investor interest in Airlink:

1. Smartphone and broadband penetration is just getting started

With smartphone penetration in Pakistan still at just 31%, compared to 47% in India and 54% in similar economies, Airlink is well-positioned to ride the wave of growth. As digital habits evolve and broadband penetration increases—now at 147 million users—demand for smartphones will only accelerate.

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2. A 10-year tax holiday powers expansion

Airlink’s acquisition of an industrial plot in the Sundar Green Special Economic Zone brings major tax advantages, including a 10-year tax holiday. This expansion will support assembly of TVs and laptops, increasing capacity while improving bottom-line metrics. Foundation estimates an incremental EPS impact of PKR 3.0 and 4.9 in FY27 and FY28, respectively.

3. Budget smartphones are gaining ground

As premium phone prices skyrocket due to high import duties, consumers are gravitating toward budget-friendly brands. Xiaomi’s market share in Pakistan has already jumped from 7.6% in Jun’24 to 9.3% in Apr’25. This shift favors Airlink, which assembles and distributes value brands like Xiaomi, Tecno, and Itel.

4. Diversification into laptops and smart TVs

Airlink is moving beyond smartphones into laptops and smart TVs, targeting Pakistan’s underserved markets. With TV market size at USD 386 million and laptop demand surging post-COVID, Airlink’s entry is well-timed. Initial laptop sales are projected at 50,000 units in FY26, with plans to begin local assembly for better margins.

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5. Xiaomi smartphone exports could be a game-changer

Airlink plans to restart Xiaomi smartphone exports, potentially shipping 300,000 units in FY26. With Xiaomi holding 11.2% global market share, Airlink is poised to capitalize on this momentum and diversify its revenue streams with international exposure.

6. Entering the EV space to ride the future

Airlink’s ambitions extend into the Electric Vehicle (EV) space by aligning with Xiaomi’s EV strategy. With the Pakistani government planning 3,000 charging stations by 2030 and offering incentives, Airlink’s entry into EVs could position it as a front-runner in the local green mobility market.

Final Word

Airlink’s story is no longer just about smartphones, it’s about seizing multiple growth frontiers. From tax incentives and export opportunities to diversification into new tech products, this company is positioning itself as a vertically integrated tech and mobility player in Pakistan.

With a 67.8% upside potential and a bold strategy to match, now might be the time investors seriously consider adding Airlink to their portfolios.

Source: Foundation Securities

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →