Route Mobile

Routesms Solutions FZE, a wholly owned subsidiary of Route Mobile Limited, received a partial arbitration award from Singapore International Arbitration Centre regarding disputes with Atom Myanmar Limited under an A2P SMS services agreement. The award addressed preliminary issues including contractual provisions on committed traffic volumes and refund obligations, with no incremental financial impact as the company had already written off related net advances in its September 2025 quarterly results.

Route Mobile Limited reported revenue from operations of INR 1,119.4 crores for the quarter ended September 30, 2025, representing a 0.5% year-on-year increase and 6.5% sequential growth. The company achieved gross profit margin expansion to 22.1%, up 70 basis points sequentially and 100 basis points year-on-year. EBITDA grew 16% sequentially from INR 115 crores to INR 133 crores, with EBITDA margin improving to 11.9%. New product revenue showed strong 13.1% sequential growth, driven by omnichannel and integrated solutions platform adoption. The company secured new customers in mobility and transportation sectors, including train/metro segments and bus booking in Bangladesh. Route Mobile expanded partnerships with TechMahindra and integrated firewall platforms with Claro networks. The quarter included exceptional items related to vendor advance write-offs that impacted reported profit after tax. Management emphasized strategic focus on profitable growth over volume, with separate dedicated teams for telco and enterprise business segments. The company maintains around 85% transactional SMS traffic versus 15% promotional traffic mix.

Route Mobile Limited submitted its monitoring agency report for the quarter ended September 30, 2025, showing INR 1,580.91 million utilized from its INR 2,400 million IPO proceeds. The company has fully utilized funds for debt repayment (INR 365 million) and acquisitions/strategic initiatives (INR 830 million). Debt repayment included clearing loans from HDFC Bank (INR 65 million) and Kotak Bank (INR 300 million). Strategic acquisitions encompassed TeleDNA Communications, 365squared Ltd, Sarv Webs Private Limited, and Mr. Messaging FZE. The remaining INR 650 million allocated for Mumbai office premises purchase remains unutilized and is deployed in fixed deposits with various banks earning returns between 3.25% to 6.70%. Axis Bank Limited serves as the monitoring agency and reported no deviation from stated objectives.