Is Axiata Group profitable in 2026?

Yes. Axiata's Q1 2026 net profit surged 71% year-on-year to RM273.8 million on revenue of RM2.8 billion, reported 24 May 2026, driven by cost discipline and XLSMART merger synergies despite a 3.2% headline revenue decline from forex effects.

Who owns Axiata Group?

Malaysia's sovereign wealth fund Khazanah Nasional Berhad is the largest shareholder with roughly 36-37% as of 28 November 2025. Other major holders include the Employees Provident Fund (~19-20%) and Permodalan Nasional Berhad/Amanah Saham Nasional (~16-18%).

Is Axiata selling its edotco tower business?

Yes, an active sale process is underway for the 63%-owned edotco tower unit, valued around US$3bn+. Macquarie Asset Management was reported the lead bidder as of 25 March 2026 after CVC Capital Partners dropped out in January 2026; completion is targeted for 2026.

Who is Axiata's biggest competitor?

It varies by market: Telkomsel leads Indonesia against Axiata's XLSMART, Grameenphone leads Bangladesh against Axiata's Robi, and Maxis Berhad (market cap ~RM28.1bn mid-2026) rivals Axiata's CelcomDigi stake in Malaysia.

Could AI replace Axiata's core telecom business?

No. Axiata's moat rests on scarce spectrum licenses and physical tower/fiber infrastructure that AI cannot replicate. The company instead deploys AI internally, signing an MOU with Aira Technologies in February 2026 for AI-native autonomous network operations.

What is Axiata28 and what does it target?

Axiata28: Advancing Asia is a three-year roadmap announced around 25 May 2026 targeting at least 10% annual dividend growth from FY2026 and net debt/EBITDA below 2x by 2028, funded partly by edotco and Link Net divestment proceeds.

Telecom infrastructure · Malaysia

Axiata Group

axiata.com ↗

Malaysian telecom holding company with mobile, broadband, and tower networks across six Asian countries.

Defensible for now

Assessed 25 July 2026 · Evidence as of 25 July 2026

Real protection, with named pressure against it.

On the recordSince 25 July 2026 · Checkable from 2026 · Every call on the record Checkpoint: Edotco tower unit sale (Macquarie leading bidder) expected to close, alongside Link Net divestment

The call

Axiata's networks and licenses stay hard to replace, but the company itself is mid-reshape, selling towers and fiber while a new CEO starts in June 2026.

Axiata runs phone and internet networks across six Asian countries and owns towers through a company called Edotco. It is hard to replace because phone companies need government licenses and physical infrastructure like cell towers that take years to build, and customers rarely switch providers. However, the company is selling off pieces of itself (like a pay-TV business called Link Net), which is still being figured out, plus it has a new leader taking over and trying to merge a digital business called XLSMART into the main company. Until these sales and mergers finish in 2026 or later, nobody quite knows what Axiata will look like or what it will be worth.

Why

AI pressure: None apparent. AI does not threaten spectrum and physical network ownership; it mainly helps Axiata cut costs in customer service and network operations. Could AI do the core job? Unlikely.

Bigger players: Telkomsel (Telkom Indonesia). In Indonesia's new three-way race, Telkomsel remains the dominant carrier while Axiata's merged XLSMART fights to hold subscribers. Could a giant copy it? No, they are blocked.

What protects it. Licensed spectrum, physical towers, and government-linked ownership through Khazanah give regulators and subscribers few easy substitutes.

What would change this call

Edotco sale closes with confirmed buyer and price by end of 2026. Shows whether tower divestment proceeds and deleveraging plan hold up as planned.
Link Net fiber divestment completes with regulatory approval in 2026. Confirms Axiata's asset-light restructuring is executing on schedule.
Q2 2026 earnings (~28 Aug 2026) report progress on XLSMART synergy target of $300-400M. Indicates whether Indonesian merger integration is delivering promised cost savings.

Key numbers

FY2025 group revenue RM11.8bn, down 6.3% YoY (2026-03-02)
Q1 2026 net profit up 71% YoY to RM273.8m (2026-05-24)
edotco 9M-FY2025 after-tax profit RM314.8m (2026-01-28)

Named risks

Edotco and Link Net divestment outcomes unresolved, could alter balance sheet and dividend math. Severity: high
New CEO transition (June 2026) creates strategic and margin uncertainty per analysts. Severity: medium
XLSMART integration expected to take up to two years, $300-400M synergies not yet fully realized. Severity: medium
Heavy FX exposure to IDR, BDT, LKR distorts reported revenue versus underlying performance. Severity: medium

Rivals, as read in July 2026

Rival	Direction	Evidence
Telkomsel	contesting	Market leader in Indonesia versus Axiata-linked XLSMART, now Indonesia's third-largest telco (Apr 2025)
Grameenphone	contesting	Bangladesh market leader against Axiata's Robi unit
Maxis Berhad	contesting	Malaysian rival with market cap ~RM28.1bn as of mid-2026, competes with Axiata's CelcomDigi stake
Macquarie Asset Management	gaining on	Reported lead bidder for Axiata's edotco tower unit as of 25 March 2026

Questions people ask

Is Axiata Group profitable in 2026?: Yes. Axiata's Q1 2026 net profit surged 71% year-on-year to RM273.8 million on revenue of RM2.8 billion, reported 24 May 2026, driven by cost discipline and XLSMART merger synergies despite a 3.2% headline revenue decline from forex effects.
Who owns Axiata Group?: Malaysia's sovereign wealth fund Khazanah Nasional Berhad is the largest shareholder with roughly 36-37% as of 28 November 2025. Other major holders include the Employees Provident Fund (~19-20%) and Permodalan Nasional Berhad/Amanah Saham Nasional (~16-18%).
Is Axiata selling its edotco tower business?: Yes, an active sale process is underway for the 63%-owned edotco tower unit, valued around US$3bn+. Macquarie Asset Management was reported the lead bidder as of 25 March 2026 after CVC Capital Partners dropped out in January 2026; completion is targeted for 2026.
Who is Axiata's biggest competitor?: It varies by market: Telkomsel leads Indonesia against Axiata's XLSMART, Grameenphone leads Bangladesh against Axiata's Robi, and Maxis Berhad (market cap ~RM28.1bn mid-2026) rivals Axiata's CelcomDigi stake in Malaysia.
Could AI replace Axiata's core telecom business?: No. Axiata's moat rests on scarce spectrum licenses and physical tower/fiber infrastructure that AI cannot replicate. The company instead deploys AI internally, signing an MOU with Aira Technologies in February 2026 for AI-native autonomous network operations.
What is Axiata28 and what does it target?: Axiata28: Advancing Asia is a three-year roadmap announced around 25 May 2026 targeting at least 10% annual dividend growth from FY2026 and net debt/EBITDA below 2x by 2028, funded partly by edotco and Link Net divestment proceeds.

Timeline

2026-06-26XLSMART completes AI-driven cloud migration with Tencent Cloud, 60+ apps and 1,200 microservices
2026-06-01Nik Rizal Kamil becomes Group CEO, succeeding Vivek Sood
2026-05-25Axiata28 roadmap announced, targets 10% dividend growth and sub-2x net debt/EBITDA by 2028
2026-05-24Q1 2026 results: net profit up 71% YoY to RM273.8m
2026-03-25Macquarie Asset Management reported lead bidder for edotco tower unit
2026-03-02FY2025 results: revenue RM11.8bn, PATAMI RM365m, EBITDA RM5.46bn
2026-02-11Axiata signs MOU with Aira Technologies for AI-native autonomous network operations
2026-01-28CVC Capital Partners drops out of edotco bidding
2025-04-16XLSMART merger (XL Axiata, Smartfren, Smart Telecom) completes, ~US$6.5bn deal

Revision history

25 July 2026

First assessed. Defensible for now. The text above is fixed as of this date and is not edited afterwards.

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