Dialog Axiata PLC posted a group net profit of Rs. 9.24 billion for the quarter ended 30 September, up 62.4 percent from Rs. 5.69 billion a year earlier, interim accounts show.

Earnings per share rose to Rs. 1.00 from Rs. 0.62. The board proposed an interim dividend of Rs. 0.70 per share.

The profit grew ten times faster than the revenue

Quarterly revenue rose 6.2 percent to Rs. 48.54 billion from Rs. 45.69 billion, which EconomyNext attributes to continued expansion in data and home broadband demand. Net profit rose 62.4 percent. Almost all of that gap is explained below the revenue line.

Direct costs fell 4.7 percent to Rs. 20.21 billion, lifting gross profit 15.7 percent to Rs. 28.33 billion. Net impairment losses on financial assets dropped 61.8 percent to Rs. 270.8 million on improved credit collections. Those gains more than offset a 13.5 percent rise in administrative expenses to Rs. 9.63 billion and a 1.3 percent rise in distribution costs to Rs. 4.98 billion. Operating profit ended 27.9 percent higher at Rs. 13.47 billion.

The second lever was debt. Finance costs plunged 42.0 percent to Rs. 1.91 billion from Rs. 3.29 billion, which the filing attributes to balance-sheet deleveraging and lower domestic interest rates. Total group borrowings fell to Rs. 64.11 billion at 30 September from Rs. 76.49 billion at end-2025 — a reduction of about Rs. 12.4 billion in nine months.

Net foreign exchange losses ran the other way, widening 132.8 percent to Rs. 917.7 million, but net finance costs still fell 25.5 percent to Rs. 2.64 billion. Pre-tax profit rose 54.9 percent to Rs. 10.84 billion, with income tax up 22.2 percent to Rs. 1.59 billion.

Restructuring and a stake sale

On 30 September the group amalgamated five subsidiaries — including Digital Commerce Lanka and Dialog Device Trading — into Digital Holdings Lanka, and merged My Health Solutions into Digital Health, under what the accounts describe as a legal entity simplification drive.

In October, after the quarter closed, Dialog sold a 20 percent stake in Digital Health to Sunshine Healthcare Lanka and Nawaloka Hospitals for Rs. 374.9 million, cutting its holding to 44.05 percent and reclassifying the unit as an associate.

Total assets stood at Rs. 287.17 billion, with net asset value per share at Rs. 9.99. Contracted capital expenditure commitments jumped to Rs. 15.71 billion from Rs. 6.30 billion at end-2025, pointing to a heavier investment programme ahead.

Dialog shares closed at Rs. 45.80 at the end of September and were trading around Rs. 49.70 on Wednesday.

Sourcing note

This article rests on a single filing. EconomyNext published it at 4.13 p.m. Colombo time on Wednesday; the Daily Mirror’s business desk had not carried the results by late evening, and no other verified newsroom had filed on them when this article was written. Quarterly results released after the market close are routinely picked up the following morning, so the single-source position reflects timing rather than a disputed account. The figures are drawn from the company’s own interim accounts as reported.

EconomyNext’s headline rounds the net profit to Rs. 9.25 billion; its own body text gives Rs. 9.24 billion, which is the figure used here.

Not reported

The filing gives no subscriber numbers, no ARPU, and no segment split between mobile, fixed broadband and television, so the composition of the 6.2 percent revenue growth cannot be checked against the data and broadband explanation. It does not say what the Rs. 15.71 billion in contracted capital commitments is for, nor what drove the 13.5 percent rise in administrative expenses. No management comment accompanies the results.