This article first appeared on GuruFocus .
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Revenue from Operations:INR11,515 million, up 9.6% year-on-year and 1.8% sequentially.
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Gross Profit:INR2,404 million, up 6.8% year-on-year, down 8.9% sequentially.
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Gross Profit Margin:20.9%, compared to 21.4% in the same quarter last year and 23.3% in the previous quarter.
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Adjusted EBITDA:INR1,089 million, down 5.6% year-on-year and 18.9% sequentially.
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Adjusted EBITDA Margin:9.5% for the quarter.
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Adjusted Profit After Tax:INR686 million, up 16.6% year-on-year, down 40.1% sequentially.
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New Product Revenue Growth:14% year-on-year and 11% quarter-on-quarter.
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OpEx Growth:2.9% year-on-year, influenced by salary inflation and higher consulting fees.
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Release Date: July 24, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Route Mobile Ltd ( BOM:543228 ) reported a year-on-year revenue growth of approximately 10% and a quarter-on-quarter growth of 2%, driven by the strength in their new products portfolio.
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The new product revenue, including RCS, WhatsApp, and other IP-based messaging solutions, grew 14% year-on-year and 11% quarter-on-quarter, indicating a successful business mix transformation.
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The acquisition of Heltar Technologies is expected to accelerate Route Mobile's move into full-stack, AI-native customer engagement, enhancing their non-SMS revenue stream.
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Route Mobile Ltd ( BOM:543228 ) maintained a high customer retention rate of 98%, indicating strong customer loyalty and satisfaction.
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The company has a robust cash position with INR1,300-plus crores, which is being strategically allocated for potential acquisitions and organic growth initiatives.
Negative Points
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Gross profit margin for the quarter was 20.9%, lower than the previous quarter's 23.3%, primarily due to temporary disruptions in traffic from select high-margin customers.
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The adjusted EBITDA margin was 9.5%, below the company's guidance, impacted by specific and largely transient items.
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A security incident at the Colombian subsidiary affected gross profit margins, although the company is actively addressing the issue.
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The ILD business continues to face growth challenges, impacting the overall revenue growth potential.
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There was a decline in sales and marketing headcount, raising concerns about the company's growth strategy and market expansion efforts.
Q & A Highlights
Q: Could you elaborate more on the customer retention rate and how the annual revenue retention has improved over the last few years, particularly among main enterprise clients? A: The net revenue retention stands at 98% for the year. We had a slight impact with one key customer, which we are working on recovering. Overall, we are not seeing significant risk on the existing customer portfolio. The revenue from the high-margin customer should come back as we roll out new features.
Q: With the significant cash on the balance sheet, how does the company plan to allocate it over the next few years? Are there any particular investments or shareholder returns planned? A: We hold around INR1,300-plus crores of cash and have a strategy for potential acquisitions to fill capability gaps. We are also considering organic initiatives and headcount increases based on business needs. Additionally, we have a dividend program in place to return a portion of cash to shareholders.
Q: On the top line, volumes have been flattish for the past few quarters. How do you see this going forward? Is this seasonal, and do you expect to maintain similar volume growth? A: We expect an upswing in volumes with the season setting in over the next couple of quarters, projecting a 10% to 15% growth. We had some losses but compensated with good wins, maintaining volume levels.
Q: How do you see operating leverage playing out with the recent wage hikes, and what will employee costs look like going forward? A: The wage hikes are behind us, and we don't expect material increases in salary costs. We will maintain around 800 employees, backfilling as needed to support product and sales growth.
Q: Can you provide an update on the FY27 guidance, particularly regarding revenue, margin, and dividend? A: We are one quarter into our fiscal year and will hold the guidance for now. Revenue was strong, and we are on track for the dividend. We are working to address in-quarter specific items affecting EBITDA margins.
Q: What is the update on the security incident at Masivian, and how do you expect its growth trajectory in the coming quarters? A: The investigation is ongoing with enhanced controls and monitoring. We are hopeful of an attestation soon, which will help regain business from affected enterprises. We expect to be back on track soon.
Q: How do you expect the non-SMS business to impact margins compared to the traditional SMS business? A: With the Heltar acquisition, we aim to bring the platform to geographies with less competition, expecting decent revenues and high margins. The initial feedback is encouraging, and we anticipate margin improvement from non-SMS products.
Q: Regarding the Truecaller partnership, how much potential do you see from this deal, and how are you pursuing it? A: We are testing the Truecaller platform with certain customers. It's too early to assess margins, but it opens up more markets. Once testing is successful, we will have a clearer view of monetization potential.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
