Nepal Telecom’s net profit rose 37.35 percent to Rs 1.82 billion in the first quarter of fiscal year 2083/84, mid-July to mid-October 2026, even though revenue from its core business was almost unchanged, according to the company’s unaudited quarterly results.
Net profit was Rs 1.3251 billion in the same quarter last year, an increase of about Rs 494.9 million. Operating revenue was Rs 8.6782 billion, against Rs 8.6795 billion a year earlier, a fall of about Rs 1.3 million. Total revenue was Rs 9.4776 billion, up 0.07 percent from Rs 9.4710 billion.
Profit up, operating earnings down
Earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 6.13 percent to Rs 4.459 billion from Rs 4.7504 billion, a drop of about Rs 291.4 million. Profit before tax rose to Rs 2.9874 billion from Rs 2.8821 billion, an increase of about Rs 105.2 million. Net profit therefore grew much faster than pre-tax profit.
The company said total expenses fell about Rs 481.2 million, or 5.90 percent. It identified lower depreciation and an impairment reversal among the reasons. Depreciation is the accounting cost of ageing network assets such as towers, fibre cables and equipment, and a lower charge raises reported profit without bringing in more cash. An impairment reversal restores part of an asset’s value previously written down, which can also lift reported profit.
Implied tax charge fell
Subtracting net profit from pre-tax profit gives an implied tax expense of about Rs 1.167 billion this quarter, against about Rs 1.557 billion a year earlier. That is a fall of about Rs 389.8 million, or 25 percent.
Costs
Employee expenses rose to Rs 2.11 billion from Rs 1.86 billion, partly because of salary-scale adjustments. Operations and maintenance rose to Rs 1.61 billion from Rs 1.52 billion, and sales and marketing to Rs 147.12 million from Rs 85.54 million. General office expenses fell to Rs 297.44 million from Rs 354.49 million.
Revenue drivers
Demand for mobile data and fibre broadband is growing, but the company says it has not translated into much more revenue. Customers are buying larger data packages at competitive prices. Fibre-to-the-home (FTTH) revenue rose about Rs 44 million. GSM operating revenue rose only about Rs 1.016 million.
Natural disasters also affected the quarter. The Bhotekoshi floods and landslides on Bhadra 10 in Rasuwa disrupted services and commercial activity, and the company gave affected customers 17 days of free voice and data. Flooding in Budhigandaki on Ashoj 25 also affected services.
The company has previously cited competition and price pressure, messaging and calling apps that cut voice and SMS income, the cost of rural network expansion and the need for continued infrastructure investment as business challenges.
