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SLT-MOBITEL delivers strong revenue and profit growth in Q1 2026

  • 1. Group revenue increased 10.6% year-on-year, driven by internet services
  • 2. Group operating profit climbed 39.1%, profit before tax increased 55.4%, and net profit rose by 53.3%
  • 3. SLT PLC revenue increased 10.6% to LKR 19.7 billion, with operating profit up 36% and net profit up 53.3%
  • 4. Mobitel revenue grew 9.9%, operating profit increased 54.7%, and net profit rose 63.7%

 

The SLT Group reported a strong start to the year, posting double-digit revenue growth and significantly higher profitability in the first quarter of 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 Group’s results reflect a decisive turnaround and strong momentum heading into the rest of the year.

Group Performance

The Group recorded a strong start to 2026, with consolidated revenue rising to LKR 30.8 billion, reflecting a 10.6% increase from LKR 27.9 billion in Q1 2025. Gross profit grew to LKR 14.6 billion, marking a 14.1% year-on-year increase, supported by higher broadband demand.

Operating profit increased to LKR 5.1 billion from LKR 3.7 billion, a 39.1% improvement. Profit before tax rose to LKR 4.2 billion, up 55.4% from LKR 2.7 billion in Q1 2025. Profit after tax reached LKR 3.1 billion compared to LKR 2 billion in the previous year, reflecting 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 significantly outpaced these increases. Finance costs declined, and foreign exchange movements contributed a net gain compared to losses in Q1 2025, further boosting profitability. Income tax expenses increased by 61.3% in line with the rise in 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. By 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, we remain committed to driving innovation, strengthening connectivity, and creating sustainable value for customers, shareholders, and the country.”

SLT PLC Performance

At the company level, SLT PLC delivered robust growth. Revenue increased to LKR 19.7 billion, up 10.6% from LKR 17.8 billion in Q1 2025. Gross profit rose to LKR 9.9 billion, representing a 13.4% year-on-year increase.

Operating profit improved to LKR 3.5 billion from LKR 2.5 billion, reflecting a 36% increase. Profit before tax reached LKR 2.9 billion, a 51% rise from LKR 1.9 billion. Profit after tax was LKR 2.1 billion, compared with LKR 1.3 billion in Q1 2025, marking a 53.3% increase.

Direct costs increased by 7.9% due to similar tariff and fuel pressures, though revenue growth and efficiency gains offset these impacts. This performance highlights SLT PLC’s ability to sustain revenue growth while maintaining cost discipline, resulting in stronger profitability and improved returns.

Riyaaz Rasheed, CEO of SLT-MOBITEL, commented, “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 further highlight the strength of our customer-centric approach and digital transformation agenda. We continue to capture opportunities in a data-driven future while maintaining efficiency and cost discipline.”

Mobitel Performance

Mobitel recorded a 9.9% increase in revenue during Q1 2026, adding LKR 1.2 billion compared to the previous year. Growth was driven by a 28% increase in broadband revenue, supported by improvements in value-added services, solution revenues, and roaming. However, voice and international termination revenues declined.

Subscriber growth remained positive during the quarter, continuing the upward trend observed in the previous year. This reflects the effectiveness of Mobitel’s customer acquisition and retention strategies.