FINANCIAL CHRONICLE — Dialog Axiata, one of Sri Lanka’s prominent telecommunications providers, reported a net profit of Rs. 9.2 billion for the quarter ending March 31, 2026, which represents a remarkable increase of 122.3% compared to Rs. 4.1 billion during the same quarter in 2025.
The company experienced a year-on-year revenue increase of 9.2%, totaling Rs. 47.3 billion, as opposed to Rs. 43.3 billion in the first quarter of the previous year.
Direct costs for the quarter were effectively reduced to Rs. 20.5 billion from Rs. 21.4 billion, leading to a gross profit of Rs. 26.9 billion due to the combination of increased revenue and decreased direct costs.
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The mobile segment continued to be the main contributor to revenue, generating Rs. 36.4 billion from external customers and achieving an operational profit of Rs. 10.1 billion.
In the Fixed Telephony and Broadband sector, external revenue reached Rs. 6.9 billion, with an operating profit of Rs. 2.6 billion. Meanwhile, the Television division saw its external revenue grow to Rs. 4 billion, which translated into an operating profit of Rs. 103.7 million, a significant turnaround from a loss reported in the previous year.
Dialog’s operating profit for the quarter climbed to Rs. 12.9 billion, an increase from Rs. 8.2 billion in Q1 2025.
Net finance costs for this quarter fell to Rs. 2 billion, down from Rs. 2.5 billion. The group also recorded a net foreign exchange loss of Rs. 11 million, a substantial improvement from the Rs. 247.3 million loss incurred in the same quarter of the previous year.
Basic earnings per share (EPS) for the quarter rose to Rs. 1.00, compared to Rs. 0.45 in 2025. In light of this strong performance, the Board of Directors has recommended an interim dividend of Rs. 0.70 per share for the financial year 2026.
On Friday, shares of Dialog Axiata closed up by 6.5%, reaching Rs. 37.50.
(Colombo/May 15/2026)
