Route Mobile Limited , a leading cloud communication platform provider, has reported a net loss of ₹21.00 crore for the second quarter, a significant shift from its profit position in the same period last year. This downturn was primarily attributed to exceptional write-offs totaling ₹135.87 crore related to advances made to two vendors.

Financial Performance

The company's financial results for Q2 revealed:

Despite the net loss, Route Mobile's revenue from operations saw a marginal increase of 0.5% year-over-year, reaching ₹1,119.42 crore. The company's gross profit margin improved to 22.1% from 21.1% in the previous year, indicating better operational efficiency.

Exceptional Items Impact

The company's bottom line was significantly impacted by two exceptional items:

1. A write-off of ₹107.96 crore related to an advance given to a mobile network operator (MNO) vendor.
2. A write-off of ₹27.91 crore for an advance to an SMS aggregator vendor.

These write-offs were necessitated due to uncertainties in recovering the advances and cessation of services from these vendors.

Underlying Performance

Excluding the exceptional items, Route Mobile's adjusted profit would have shown a 70% sequential increase but a marginal 0.4% year-over-year decline. This suggests that the company's core operations remain relatively stable despite the challenges faced with vendor advances.

Management Commentary

Rajdipkumar Gupta, Managing Director & Chief Executive Officer of Route Mobile, commented on the results: "Our teams have delivered a solid performance this quarter, with strong execution across key operational metrics and customer engagement. We are successfully addressing evolving market dynamics, responding with agility and focus, and our differentiated strategy. We remain committed to seizing new opportunities and delivering sustained value across our global footprint."

Future Outlook

While the exceptional write-offs have impacted the current quarter's results, Route Mobile's management remains optimistic about the company's future prospects. The focus on operational efficiency and strategic initiatives is expected to drive growth in the coming quarters.

Dividend Declaration

In a show of confidence, the Board of Directors has recommended an interim dividend of ₹3.00 per share (30% of face value).

Route Mobile's ability to navigate through these exceptional challenges while maintaining revenue growth and improving gross margins demonstrates the company's resilience in a dynamic market environment. Investors and stakeholders will be keenly watching how the company leverages its strong operational performance to overcome the impact of these one-time write-offs in the coming quarters.

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.