Dialog Axiata Q1 net profit more than doubles to Rs.9.2bn

Sri Lanka’s Dialog Axiata, a leading telecommunications company, posted a net profit of of Rs.9.2 billion for the quarter ended March 31, 2026, marking a 122.3% increase from Rs.4.1 billion recorded in the same period of 2025.

The group’s revenue grew by 9.2% year-on-year to reach Rs.47.3 billion, up from Rs.43.3 billion in the first quarter of the previous year.

Direct costs for the period were managed at Rs.20.5 billion, down from Rs.21.4 billion.

Higher revenue and lower direct cost in the quarter resulted in a gross profit of Rs.26.9 billion.

The Mobile operation remained the primary driver of top-line performance, contributing Rs.36.4 billion in revenue from external customers and generating a segment operating profit of Rs.10.1 billion.

The Fixed Telephony and Broadband segment contributed Rs.6.9 billion in external revenue with an operating profit of Rs.2.6 billion.

The Television operation saw its external revenue rise to Rs.4 billion, returning a segment operating profit of Rs.103.7 million compared to a loss in the previous year.

Dialog’s operating profit rose to Rs.12.9 billion, up from Rs.8.2 billion in Q1 2025.

Net finance costs for the quarter decreased to Rs.2 billion from Rs2.5 billion. The group also reported a net foreign exchange loss of  Rs.11 million, compared to a much larger loss of Rs.247.3 million in the same quarter last year.

Basic earnings per share (EPS) for the quarter stood at Rs.1.00, up from Rs.0.45 in 2025.

Following the strong performance, the Board of Directors has proposed an interim dividend of Rs.0.70 per share for the financial year 2026.