SLT-Mobitel delivers strong revenue and profit growth in 1Q 2026, reporting double-digit revenue expansion and significantly improved profitability compared to the same period last year. The strong quarterly performance was driven by rising broadband demand, improved operational efficiency, and growing digital service adoption.
SLT-Mobitel delivers strong revenue and profit growth in 1Q 2026 amid broadband surge
The SLT Group recorded consolidated revenue of Rs. 30.8 billion for the first quarter of 2026, reflecting a 10.6 percent increase from Rs. 27.9 billion reported in the corresponding period of 2025. Gross profit also climbed strongly to Rs. 14.6 billion, up 14.1 percent year-on-year, supported largely by sustained growth in broadband demand and digital connectivity services across the country.
The Group’s operating profit surged to Rs. 5.1 billion from Rs. 3.7 billion recorded a year earlier, marking a substantial 39.1 percent improvement. Profit before tax increased sharply by 55.4 percent to Rs. 4.2 billion, while profit after tax rose to Rs. 3.1 billion, compared with Rs. 2 billion in the same quarter last year.
Despite continued pressure from rising electricity tariffs, fuel prices, and currency-related costs, SLT-Mobitel managed to maintain strong cost discipline. Direct costs rose 7.6 percent during the quarter, although revenue growth significantly outpaced these increases. The Group also benefited from reduced finance costs and favourable foreign exchange movements, which contributed positively to earnings after losses were recorded from currency fluctuations in 1Q 2025.
Income tax expenses increased by 61.3 percent in line with the company’s sharp rise in profitability during the quarter.
Chairman Dr. Mothilal de Silva said the Group’s strong performance demonstrates the resilience of its business strategy and operational model. He noted that the company has signalled a decisive turnaround while building momentum for the remainder of the year.
“As Sri Lanka’s National ICT Solutions Provider, the Group remains committed to driving innovation, strengthening connectivity, and creating sustainable value for customers, shareholders, and the country,” he stated.
At company level, SLT PLC also posted robust financial growth during the first quarter. Revenue increased to Rs. 19.7 billion from Rs. 17.8 billion recorded in 1Q 2025, reflecting a 10.6 percent rise. Gross profit climbed 13.4 percent year-on-year to Rs. 9.9 billion.
Operating profit improved significantly to Rs. 3.5 billion from Rs. 2.5 billion, while profit before tax rose 51 percent to Rs. 2.9 billion. Profit after tax increased to Rs. 2.1 billion compared to Rs. 1.3 billion reported during the same period last year.
The company noted that direct costs rose by 7.9 percent due to fuel and tariff pressures. However, stronger revenue momentum, operational efficiencies, and disciplined cost management helped offset these challenges, allowing profitability to improve substantially.
SLT-Mobitel CEO Riyaaz Rasheed said the Group is well-positioned to sustain future growth through expanding digital services and next-generation technology investments. He highlighted the company’s continued focus on AI-driven innovation, 5G expansion, and customer-centric services as key growth drivers.
According to Rasheed, Mobitel’s subscriber growth and rising broadband demand demonstrate the effectiveness of its acquisition and retention strategies, alongside its broader digital transformation agenda.
Mobitel recorded a 9.9 percent increase in revenue during the quarter, adding Rs. 1.2 billion compared to the previous year. The growth was mainly driven by a 28 percent increase in broadband revenue, supported by gains in value-added services, solution-based revenues, and roaming income.
However, the company noted that traditional voice revenues and international termination revenues continued to decline, reflecting shifting consumer preferences toward data-driven communication services.
Subscriber momentum also remained positive throughout the quarter, continuing the growth trend seen in 2025. The company said this performance reinforces the success of its long-term strategy focused on customer engagement, network expansion, and digital transformation initiatives.
Industry analysts view the strong quarterly results as an indication that SLT-Mobitel is successfully capitalising on Sri Lanka’s increasing reliance on digital connectivity and broadband services. With continued investments in AI, 5G infrastructure, and enterprise digital solutions, the Group is expected to maintain growth momentum while strengthening its position in the country’s telecommunications and ICT sector.