Subex Limited Reports 4% QoQ Revenue Growth in Q2 FY26, Returns to Profitability
Subex Limited announced its Q2 FY26 financial results, showing improved performance. Revenue grew 4% QoQ to ₹6,891 lakhs, while normalized EBITDA increased 70.6% to ₹730 lakhs. The company reported a normalized profit before tax of ₹524 lakhs, marking its first quarter of sustained profitability driven by operational performance. Subex secured deals worth over $15 million, expanded in APAC and Europe, and is focusing on building an AI-native workforce.
*this image is generated using AI for illustrative purposes only.
Subex Limited , a leading telecom AI solutions provider, has announced its financial results for the second quarter of fiscal year 2026, showcasing improved performance and a return to profitability.
Key Financial Highlights
For the quarter ended September 30, 2025, Subex reported the following key financial metrics:
| Particulars | Q2 FY26 | Q1 FY26 | QoQ Change |
|---|---|---|---|
| Revenue | 6891.00 | 6640.00 | 4.00% |
| Normalised EBITDA* | 730.00 | 428.00 | 70.60% |
| Profit before tax | 422.00 | 1471.00 | -71.30% |
| Profit after tax | 286.00 | 1281.00 | -77.70% |
*Excluding Exceptional items & impairment allowance of trade receivables
Revenue Growth and Operational Performance
Subex's revenue for Q2 FY26 grew by 4% quarter-on-quarter to ₹6,891 lakhs, driven by improved project execution. The company's normalized EBITDA saw a significant improvement, reaching ₹730 lakhs compared to ₹428 lakhs in Q1 FY26, supported by stronger contribution margins.
Profitability
The company reported a normalized profit before tax of ₹524 lakhs for Q2 FY26, compared to ₹271 lakhs in the previous quarter, excluding one-time gains. This marks Subex's first quarter of sustained profitability driven purely by operational performance, without any one-time or non-operating gains.
Balance Sheet and Cash Position
Subex maintained a stable financial position with the following metrics:
- Days Sales Outstanding (DSO) stood at 100 days, compared to 96 days in Q1 FY26
- Closing cash position remained stable at ₹13,589 lakhs
Business Highlights
- Secured deals worth over $15 million in recent months
- Gained new opportunities in APAC and Europe
- Renewed managed services contracts with Tier-1 operators
- Onboarded a new Sales Head based in Europe
- Building an AI-native workforce to enhance capabilities
Management Commentary
Nisha Dutt, Managing Director and CEO of Subex Limited, stated, "We are pleased to report a quarter of growth and improved profitability. Our focus on operational excellence and strategic initiatives is beginning to yield results. The significant deals we've secured and our expansion in key markets position us well for sustained growth."
Outlook
While Subex has shown improvement in its quarterly performance, the company continues to face challenges in the dynamic telecom industry. The management's efforts to build an AI-native workforce and expand its presence in strategic markets may help in navigating future opportunities and challenges.
Investors and analysts will be keenly watching Subex's performance in the coming quarters to see if the company can maintain its growth trajectory and profitability.
Note: All figures are in accordance with Indian Accounting Standards (Ind AS).
About Subex Limited
Subex is a telecom AI solutions company enabling Communications Service Providers (CSPs) across the globe to deliver connected experiences to their customers. With over 30 years of expertise, Subex specializes in business optimization and analytics, leveraging AI to build intelligent connected ecosystems for its customers. The company's portfolio includes solutions for Business Assurance, Fraud Management, and Partner Ecosystem Management.
Disclaimer: This article is for informational purposes only and should not be considered as financial advice. Please consult with a qualified financial advisor before making any investment decisions.
Historical Stock Returns for Subex
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.23% | +2.15% | +2.63% | -7.45% | -42.04% | -37.46% |
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