Route Mobile Reports Mixed Q2 FY25-26 Results with Revenue Growth and EBITDA Jump
Route Mobile Limited announced its Q2 FY25-26 financial results, showing a 0.5% year-on-year and 6.5% quarter-on-quarter revenue growth to ₹11,340.00 million. Adjusted EBITDA increased by 15.5% quarter-on-quarter and 0.7% year-on-year. Gross profit margin expanded to 22.1%. The company processed 4.4 billion billable transactions in H1 FY25-26. Cash and cash equivalents stood at ₹10,470.00 million. An interim dividend of ₹3.00 per share was recommended. Route Mobile operates in 20 locations globally, with 280 direct mobile network operator connections and 2,500 active billable clients.
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Route Mobile Limited , a leading Communication Platform as a Service (CPaaS) provider, has announced its financial results for the second quarter of fiscal year 2025-26, revealing a mixed performance with modest revenue growth and a significant jump in EBITDA.
Revenue Performance
Route Mobile reported a revenue of ₹11,340.00 million for Q2 FY25-26, representing a marginal year-on-year increase of 0.5% and a more substantial quarter-on-quarter growth of 6.5%. The company's revenue for the last twelve months ended September 30, 2025, reached ₹45,290.00 million, indicating steady business momentum.
Profitability Metrics
The company's adjusted EBITDA showed impressive growth, increasing by 15.5% quarter-on-quarter and 0.7% year-on-year. For the last twelve months ended September 30, 2025, the EBITDA stood at ₹5,024.00 million. Notably, the gross profit margin expanded to 22.1% in Q2 FY25-26 from 21.4% in the previous quarter, suggesting improved operational efficiency.
Operational Highlights
Route Mobile processed 4.4 billion billable transactions in H1 FY25-26, showcasing the scale of its operations. The company's new generation product revenues grew by 13% quarter-on-quarter, indicating successful market penetration of its latest offerings.
Financial Position
As of September 30, 2025, Route Mobile reported cash and cash equivalents of ₹10,470.00 million, with a robust cash flow to EBITDA conversion ratio of 82% in H1 FY25-26. This strong liquidity position provides the company with financial flexibility for future growth initiatives.
Dividend Announcement
The Board of Directors has recommended an interim dividend of ₹3.00 per share, demonstrating confidence in the company's financial health and commitment to shareholder returns.
Global Presence and Client Base
Route Mobile continues to expand its global footprint, operating across 20 locations worldwide. The company boasts 280 direct mobile network operator connections and serves 2,500 active billable clients, highlighting its strong market position in the CPaaS industry.
Management Commentary
Rajdipkumar Gupta, Managing Director and CEO of Route Mobile, stated, "Our Q2 results demonstrate Route Mobile's resilience and ability to grow in a dynamic market environment. The significant improvement in our EBITDA and gross profit margin reflects our focus on operational efficiency and the increasing adoption of our high-margin new generation products."
Future Outlook
While the company faces challenges in terms of modest year-on-year revenue growth, the strong quarter-on-quarter performance in both revenue and EBITDA suggests potential for improved results in the coming quarters. Route Mobile's continued investment in new generation products and its strong global presence position it well for future growth in the evolving CPaaS market.
Historical Stock Returns for Route Mobile
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.63% | -1.06% | -8.90% | -25.81% | -51.86% | -30.54% |
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