Subex Limited has announced a strategic engagement with a leading telecom operator in North Africa to modernize its Revenue Assurance and Fraud Management (RAFM) operations. The contract, disclosed under Regulation 30 on May 21, 2026, is valued at USD 1.93 Million and covers a period of five years. This partnership marks an upgrade from the operator's existing ROC setup to Subex's advanced HyperSense platform.

Deployment of HyperSense Platform

The core of the engagement involves the deployment of the HyperSense platform, an AI-first business assurance and fraud management solution. The platform is designed to help the client enhance operational agility, strengthen fraud detection, and improve revenue protection. By leveraging modular data management, analytics, process automation, and AI-driven intelligence, the solution aims to enable seamless implementation and ongoing operational efficiency for the telecom operator.

Contract Details

The agreement outlines specific terms regarding the nature and duration of the services provided. The following table summarizes the key particulars of the order:

Strategic Impact

Nisha Dutt, Managing Director and CEO of Subex, emphasized the necessity of intelligent systems in the current telecom landscape. She stated that telecom operators require scalable and adaptive systems capable of responding to evolving business and fraud risks in real time. The deployment of Subex HyperSense RAFM is intended to deliver greater agility, automation, and AI-led operational intelligence to the client. This engagement reinforces Subex's focus on enabling telecom operators globally with intelligent, secured, and seamless digital ecosystems.

Subex Limited announced its audited standalone and consolidated financial results for the quarter and year ended March 31, 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. MD & CEO Nisha Dutt 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."

Q4FY26 Earnings Call: Key Highlights

Subex held its Q4FY26 investor earnings call on May 13, 2026, with participation from MD & CEO Nisha Dutt, CFO Sumit Kumar, Head of Corporate Strategy and AI Harsha Angeri, and Company Secretary Ramu Akkili. The call covered operational performance, AI strategy, geopolitical risks, and the company's growth roadmap. The following table summarises the key business and strategic metrics discussed during the call:

On the earnings call, Dutt highlighted that order intake in FY26 was 35% higher than any prior year, providing a strong backlog entering FY27. She noted that as implementation cycles for recently won contracts near completion, subscription revenues are expected to pick up, with sequential revenue conversion expected to improve through FY27. Dutt also acknowledged that while the company is growing, the pace has not yet met internal targets, and top-line acceleration remains her singular focus for FY27.

Geopolitical Risks and Mitigation

With approximately 31% of revenue originating from the Gulf region, Subex acknowledged meaningful exposure to Middle East geopolitical uncertainty. Management stated that delivery for existing projects has been largely offshored to Bangalore to mitigate on-ground risks, and contract renewals are expected to hold. However, new deal closures in the region may face delays due to customer caution on new spending commitments. Dutt noted that APAC and Europe remain steady contributors, while the company plans to invest more aggressively in the Americas during FY27. Africa is also seeing growing momentum, with a tier-1 operator expanding its managed services engagement into AI use cases.

AI Strategy and Growth Engines

Subex outlined four key growth engines for FY27: traditional telco expansion, horizontal scaling into adjacencies such as data centers and mobile money, agentic AI to replace managed services teams at telcos, and new-age fraud solutions addressing vectors such as social engineering, SMS fraud, and account takeover. The company's FraudZap product has onboarded three paying telco customers, and its team-of-LLMs solution has completed proof-of-concept stages with two to three customers, with commercialisation targeted for the near term. A key technical challenge cited was GPU hardware procurement reluctance among customers, particularly in the Middle East, with the team actively exploring CPU-based deployment to accelerate rollout. Dutt also confirmed that the company has approximately ₹50 crores available for potential tuck-in acquisitions after accounting for working capital requirements, and that investor outreach to PMS and HNI investors is planned for the current quarter.