SLT-MOBITEL Delivers Strong Revenue And Profit Growth In Q1 2026

(MENAFN- Colombo Gazette) SLT-MOBITEL reported a strong financial performance in the first quarter of 2026, with group revenue increasing 10.6% year-on-year, driven primarily by internet services. Group operating profit rose 39.1%, profit before tax increased by 55.4%, and net profit climbed 53.3%.

SLT PLC revenue grew 10.6% to LKR 19.7 billion, with operating profit up 36% and net profit increasing by 53.3%. Meanwhile, Mobitel revenue rose 9.9%, with operating profit up 54.7% and net profit increasing by 63.7%.

The SLT Group posted a strong start to the year, recording double-digit revenue growth and significantly higher profitability in Q1 2026 compared to Q1 2025. This performance was driven by notable gains in operating profit and net earnings, alongside sustained demand for broadband (internet) services. The results signal a decisive turnaround and strong momentum heading into the rest of the year.

Group performance

The Group's consolidated revenue rose to LKR 30.8 billion, up 10.6% from LKR 27.9 billion in Q1 2025. Gross profit increased to LKR 14.6 billion, reflecting a 14.1% year-on-year growth supported by higher broadband demand.

Operating profit surged to LKR 5.1 billion from LKR 3.7 billion in the previous year, marking a 39.1% improvement. Profit before tax climbed to LKR 4.2 billion, up 55.4% from LKR 2.7 billion, while profit after tax rose to LKR 3.1 billion compared to LKR 2 billion in Q1 2025, a 53.3% increase.

Direct costs increased by 7.6% year-on-year due to higher electricity tariffs, fuel prices, and continued currency pressures. However, revenue growth outpaced these increases. Finance costs declined during the period, and foreign exchange movements resulted in a net gain compared to losses recorded in Q1 2025, further boosting profitability. Income tax expenses rose by 61.3% in line with increased profitability.

Dr. Mothilal de Silva, Chairman of SLT Group, stated,“Our strong first-quarter performance demonstrates the resilience of the SLT Group and the success of our strategy. Delivering double-digit revenue growth and significantly higher profitability, we have signalled a decisive turnaround and built momentum for the rest 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.”

SLT PLC delivers robust growth

At the company level, SLT PLC recorded strong growth. Revenue increased to LKR 19.7 billion, up 10.6% from LKR 17.8 billion in Q1 2025, while gross profit rose to LKR 9.9 billion, marking a 13.4% year-on-year increase.

Operating profit improved to LKR 3.5 billion from LKR 2.5 billion, reflecting a 36% rise. Profit before tax reached LKR 2.9 billion, up 51% from LKR 1.9 billion, and profit after tax increased to LKR 2.1 billion from LKR 1.3 billion, a 53.3% gain.

Direct costs rose by 7.9%, driven by similar tariff and fuel pressures. However, strong revenue momentum and efficiency improvements helped offset these challenges. The performance underscores SLT PLC's ability to sustain growth while maintaining cost discipline and improving profitability.

Riyaaz Rasheed, CEO of SLT-MOBITEL, noted,“The quarter's results demonstrate that SLT-MOBITEL is well-positioned to deliver continued growth, expand digital services, and drive the next wave of AI and 5G innovation. This reinforces our role as a trusted technology partner powering national progress. Mobitel's sustained subscriber growth and rising broadband demand highlight the effectiveness of our customer-centric approach and digital transformation agenda. With increasing revenue and broadband growth, we are capturing opportunities in a data-driven future while maintaining cost discipline and efficiency.”

Mobitel posts strong performance

Mobitel recorded a 9.9% increase in revenue in Q1 2026, adding LKR 1.2 billion compared to the previous year. Growth was driven by a 28% rise in broadband revenue, along with gains in value-added services, solutions, and roaming, although voice and international termination revenues declined.

Subscriber momentum remained positive during the quarter, continuing the growth trend seen last year and reinforcing the success of Mobitel's acquisition and retention strategies.

MENAFN15052026000190011042ID1111122420