Subex Limited shareholders have approved four special resolutions concerning the company's new Employee Stock Option Scheme 2026 through a postal ballot process that concluded on September 12, 2026.

The approvals pave the way for the formulation of the 'Subex Employees Stock Option Scheme 2026' and grant stock options to employees of the company's subsidiaries. Additionally, shareholders authorized the Subex Employee Welfare and ESOP Benefit Trust to acquire company shares in the secondary market and approved a loan grant to the trust.

Voting Results Overview

All four resolutions were passed with the requisite majority under Section 110 read with Section 108 of the Companies Act, 2013. The remote e-voting process was scrutinized by BMP & Co. LLP, with Pramod S M serving as the designated partner and scrutinizer.

Shareholder Participation

The record date for determining eligible voters was August 7, 2026. As on this date, there were 338,793 shareholders registered with the company. The total number of shares held by public institutions stood at 30,004,719, while public non-institutions held 531,998,216 shares.

Promoter and promoter group holdings did not participate in the voting for any of the resolutions, with zero votes polled from this category across all agenda items. The voting process commenced on August 14, 2026, at 9:00 am and concluded on September 12, 2026, at 5:00 pm.

What the Numbers Show

The approval rates for all four resolutions remained consistently high, ranging between 83.84% and 85.89%. This indicates strong alignment among participating shareholders regarding the employee retention strategy and the financial mechanisms supporting it. Notably, the resolution authorizing the trust to acquire shares in the secondary market received the highest support at 85.89%, suggesting shareholder comfort with potential dilution or market impact from such purchases compared to the internal scheme formulation.

The voting data reveals a distinct divergence between institutional and non-institutional participation levels. Public institutions voted on approximately 8.22% of their outstanding shares, whereas public non-institutions participated at a lower rate of roughly 3.44%. Despite the lower participation rate among non-institutional investors, they constituted the bulk of the votes cast in favour, reflecting their larger shareholding base.

Subex has secured a confirmed work order worth Rs 0.6 lakh from a leading African mobile operator. The contract is for a period of three years and involves deploying HyperSense Fraud Management solutions to strengthen the operator's ability to detect and combat emerging fraud across its mobile operations.

ORDER IN FINANCIAL CONTEXT

The Rs 0.6 lakh order represents a modest addition to the company's order book, following a Rs 0.6 crore win from a major European open-access fibre operator announced earlier in August 2026. Given the small value relative to the company's average quarterly revenue of Rs 77.50 crore, this order contributes minimally to immediate revenue visibility. The total disclosed order book remains at Rs 0.60 crore across two orders in the last three fiscal quarters.

COMPANY ORDER TRACK RECORD

Subex has disclosed two orders in exchange filings over the last three fiscal quarters. The latest disclosure adds an international client from Africa to its portfolio of awarding entities.

EXECUTION AND REVENUE QUALITY

Subex has shown a clear improvement in profitability over the last three quarters. Operating Profit Margin (OPM) expanded significantly from 6.41% in Q3FY26 to 18.88% in Q1FY27, driven by higher operating profits relative to revenue growth. Net profit also more than quadrupled from Rs 2.90 crore in Q3FY26 to Rs 14.20 crore in Q1FY27. This trend suggests efficient cost management and potentially higher-margin project mix.

REVENUE GROWTH - ORDER WINS TRANSLATING TO REVENUE

As Subex has sustained its operations despite volatile past years, its annual revenue has grown from Rs 292.60 crore in FY25 to Rs 310.80 crore in FY26, representing a YoY growth of +6.2% based on the latest annual data. This recovery follows a period of significant losses in FY24 and FY25, where net profit was negative. The return to profitability in FY26, with a net profit of Rs 28.50 crore, indicates that the company's core business model is stabilizing.

WORKING CAPITAL AND EXECUTION CAPACITY

The company maintains a strong liquidity position with a current ratio of 2.64x, indicating sufficient current assets to cover short-term liabilities. Total Liabilities/Equity stands at a conservative 0.61x, reflecting a balance sheet with low leverage and limited interest-bearing debt pressure. Operating cashflow improved substantially to Rs 71.50 crore in FY26 compared to Rs 9.50 crore in FY25, demonstrating that the company is efficiently converting its earnings into cash.

WHAT TO WATCH

• Execution rate: Monitor quarterly revenue run-rate vs total backlog. With a near-zero disclosed backlog, consistent new order inflows are critical to sustain the current revenue trajectory.
• OPM trajectory: Watch if the improved OPM of 18.88% in Q1FY27 is sustainable across larger contracts or specific to certain project types.
• Client concentration: Assess what percentage of future revenues will come from international clients like this African mobile operator and the European fibre operator versus domestic mandates.
• Order visibility: Look for subsequent disclosures in upcoming quarters to gauge if these orders are part of a broader pipeline or isolated wins.

KEY OBSERVATIONS

• Margin expansion: OPM expanded from 6.41% in Q3FY26 to 18.88% in Q1FY27, signaling significant improvement in cost efficiency or project mix quality.
• Cash conversion: Operating cashflow surged to Rs 71.50 crore in FY26, providing strong internal funding for operations and reducing reliance on external capital.