Subex Limited announced its audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, approved by the Board of Directors at its meeting held on May 12, 2026. On a consolidated basis, the company reported a net profit of ₹993 lakhs for Q4FY26, compared to a net loss of ₹1,760 lakhs in Q4FY25, marking a significant year-on-year turnaround. Consolidated revenue from operations for Q4FY26 stood at ₹7,296 lakhs, a 3% sequential increase from ₹7,079 lakhs in Q3FY26. For the full year FY26, the company posted a consolidated net profit of ₹2,853 lakhs, against a net loss of ₹3,144 lakhs in FY25. Total income on a consolidated basis rose to ₹31,082 lakhs for FY26 from ₹29,256 lakhs in FY25, a 6% YoY increase.

Consolidated Financial Performance

The following table presents the key consolidated financial metrics for the quarter and full year:

*Excluding exceptional items and impairment allowance for trade receivables

Normalised EBITDA for Q4FY26 improved to ₹1,058 lakhs from ₹909 lakhs in Q3FY26, reflecting a growth of 16.40%. The normalised EBITDA margin stood at 14.50% in Q4FY26, compared to 7.50% in Q4FY25, marking a 705 basis points expansion year-on-year. For the full year, normalised EBITDA grew over 4x from ₹645 lakhs to ₹2,878 lakhs, with margin expanding from 2% to 10%. The company noted that EBITDA has been positive in 9 out of the last 10 quarters, underscoring consistent operational discipline.

Standalone Financial Performance

On a standalone basis, Subex reported a net profit of ₹604 lakhs for Q4FY26, compared to a net loss of ₹2,192 lakhs in Q4FY25. Standalone revenue from operations for Q4FY26 stood at ₹6,456 lakhs, while total income for the quarter was ₹7,609 lakhs. For the full year FY26, standalone revenue from operations was ₹25,607 lakhs against ₹26,881 lakhs in FY25, while standalone net profit for FY26 was ₹586 lakhs compared to a net loss of ₹4,978 lakhs in FY25.

Balance Sheet and Liquidity

On a consolidated basis, total assets stood at ₹55,190 lakhs as at March 31, 2026, compared to ₹48,696 lakhs as at March 31, 2025. Total equity improved to ₹34,281 lakhs from ₹30,448 lakhs, with other equity rising to ₹6,181 lakhs from ₹2,348 lakhs. Consolidated cash and cash equivalents at the end of FY26 stood at ₹8,218 lakhs, up from ₹5,064 lakhs at the start of the year. Net cash flows from consolidated operating activities for FY26 were ₹7,151 lakhs, compared to ₹950 lakhs in FY25. On a standalone basis, total assets were ₹34,443 lakhs as at March 31, 2026, with total equity at ₹17,159 lakhs. Standalone cash and cash equivalents at year-end stood at ₹1,785 lakhs.

Exceptional Items and Corporate Developments

During FY26, the company recognised exceptional items of ₹466 lakhs on a consolidated basis, primarily comprising the statutory impact of new labour codes (₹466 lakhs), following the Government of India's consolidation of 29 existing labour laws into four Labour Codes effective November 21, 2025. On a standalone basis, exceptional items totalled ₹3,295 lakhs, which included an impairment provision of ₹2,847 lakhs related to a subsidiary of Subex Assurance LLP and the statutory impact of new labour codes of ₹448 lakhs. The Board also approved the re-appointment of Mr. Rupinder Goel (DIN: 02693178) as Independent Director for a second term of three years commencing from August 8, 2026, up to August 7, 2029, subject to shareholder approval.

Strategic Highlights and Management Commentary

During Q4FY26, Subex secured several new deals, including a new logo in North Africa for Enterprise Asset Management and a new deal in North America for an AI Handset Fraud solution. The company also regained a tier-1 competitor account for Business Assurance in the Middle East. The company's AI customer base has grown approximately 4x, and models in production have scaled 5x since 2023. Nisha Dutt, MD & CEO of Subex, stated: "Subex exits the year with a stronger balance sheet, improved profitability profile, sharper market positioning, and a more aligned foundation for long-term AI-led growth. We remain focused on telco, where we are trusted and well known. We continue to invest in our core strengths while expanding with AI-led offerings like FraudZap™. AI adoption is scaling strongly, models in production are 5x since 2023, and our AI customer base is ~4x since I took over. Our direction is clear: double down where we have the right to win." The management hosted an earnings conference call on May 13, 2026, at 11:00 A.M. (IST) to discuss the results. The audio recording of the earnings call is available on the company's website.

Subex Limited has disclosed the receipt of an income tax refund amounting to Rs. 2.37 Crores, inclusive of interest of Rs. 1.28 Crores, pertaining to Assessment Year (AY) 2008-09. The refund was credited to the company's bank account on May 04, 2026, and the disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Income Tax Refund Details

The refund was issued pursuant to a rectified order given to give effect to the High Court's order for AY 2008-09. The key details of the refund are summarised below:

Regulatory Disclosure

The company made this disclosure in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The intimation was addressed to both the National Stock Exchange of India Ltd. and BSE Limited. The disclosure was signed by Ramu Akkili, Company Secretary & Compliance Officer of Subex Limited.