Route Mobile Reports Strong Q2 FY26 Results with Margin Expansion and New Product Growth

Route Mobile Limited , a leading global cloud communications platform provider, has announced its financial results for the second quarter of fiscal year 2026, demonstrating robust growth and improved profitability.

Financial Highlights

Revenue from operations reached INR 1,119.40 crores, marking a 0.5% year-on-year increase and a notable 6.5% sequential growth.
Gross profit margin expanded to 22.1%, up 70 basis points sequentially and 100 basis points year-on-year.
EBITDA grew by 16% sequentially to INR 133.00 crores, with EBITDA margin improving to 11.9%.

Key Performance Metrics

Metric	Q2 FY26	QoQ Change	YoY Change
Revenue	INR 1,119.40 crores	+6.5%	+0.5%
Gross Profit Margin	22.1%	+70 bps	+100 bps
EBITDA	INR 133.00 crores	+16%	-
EBITDA Margin	11.9%	-	-

Business Highlights

New product revenue showed strong 13.1% sequential growth, driven by increased adoption of omnichannel and integrated solutions platforms.
The company secured new customers in the mobility and transportation sectors, including train/metro segments and bus booking services in Bangladesh.
Route Mobile expanded its partnership with Tech Mahindra and integrated firewall platforms with Claro networks.
The company maintains a mix of approximately 85% transactional SMS traffic versus 15% promotional traffic.

Strategic Focus

Route Mobile has implemented a two-pronged strategy, focusing separately on telco and enterprise business segments:

Telco Focus: Dedicated team for products like CPaaS in a box, RCS map server, and firewall solutions.
Enterprise Focus: Team concentrating on omnichannel stack and SMS services.

Management Commentary

Rajdipkumar Gupta, Managing Director and Chief Executive Officer, stated, "This quarter truly validates the strategic direction we outlined at the beginning of the year, and it demonstrates the power of disciplined execution. We are seeing strong recovery across our businesses, expanded margins, and meaningful progress on the strategic initiatives we have been building over the past several months."

Future Outlook

While the company did not provide specific guidance, management expressed confidence in maintaining the growth momentum. The focus remains on:

Expanding the new product portfolio, particularly in WhatsApp, RCS, and email services.
Leveraging partnerships, especially within the Proximus Global ecosystem.
Exploring potential tuck-in investments in AI-based companies to enhance product offerings.

Route Mobile's strong performance in Q2 FY26 reflects its successful strategy of prioritizing profitable growth and expanding its product portfolio. With a clear focus on both telco and enterprise segments, the company is well-positioned to capitalize on the growing demand for omnichannel communication solutions.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.37%	-1.31%	-9.15%	-31.62%	-54.91%	-40.27%

Route Mobile Limited , a leading cloud communication platform as a service (CPaaS) provider, has released its monitoring agency report for the quarter ended September 30, 2025, detailing the utilization of its Initial Public Offering (IPO) proceeds. The report, issued by Axis Bank Limited as the monitoring agency, reveals that the company has fully utilized INR 1,580.91 million out of the total INR 2,400.00 million raised through its IPO.

Breakdown of Fund Utilization

The company has strategically allocated its IPO proceeds across various objectives, as outlined in the following table:

Objective	Amount Allocated (INR Million)	Amount Utilized (INR Million)	Status
Repayment of Borrowings	365.00	365.00	Fully Utilized
Acquisitions and Strategic Initiatives	830.00	830.00	Fully Utilized
Purchase of Office Premises in Mumbai	650.00	0.00	Unutilized
General Corporate Purposes	385.91	385.91	Fully Utilized
Total	2,230.91	1,580.91

Debt Repayment Details

Route Mobile has completely cleared its allocated funds for debt repayment, which included:

INR 65.00 million repaid to HDFC Bank
INR 300.00 million repaid to Kotak Bank

Strategic Acquisitions

The company has fully utilized the INR 830.00 million earmarked for acquisitions and strategic initiatives. Key acquisitions include:

TeleDNA Communications Private Limited
365squared Ltd (final earnout payment)
Sarv Webs Private Limited
Mr. Messaging FZE

These strategic moves are expected to strengthen Route Mobile's market position and expand its service offerings in the cloud communication sector.

Unutilized Funds

The remaining INR 650.00 million, initially allocated for purchasing office premises in Mumbai, remains unutilized. Route Mobile has deployed these funds in fixed deposits with various banks, earning returns ranging from 3.25% to 6.70%.

Compliance and Transparency

Axis Bank Limited, serving as the monitoring agency, has reported no deviation from the stated objectives of the IPO fund utilization. This adherence to the planned usage of funds demonstrates Route Mobile's commitment to transparency and responsible financial management.

Conclusion

Route Mobile's strategic utilization of its IPO proceeds, focusing on debt reduction and key acquisitions, positions the company for potential growth in the competitive CPaaS market. The company's decision to keep the funds for office premises purchase in fixed deposits showcases a cautious approach to capital allocation, ensuring returns on unutilized funds while maintaining flexibility for future expansion plans.

Investors and stakeholders can take confidence in the company's disciplined approach to fund utilization and its focus on strengthening its market position through strategic initiatives.