Subex Limited , a leading telecom analytics solutions provider, announced its financial results for the first quarter, revealing a mixed performance with declining revenue but improved profitability.

Financial Highlights

• Revenue stood at INR 664.00 million, down from INR 706.00 million in the previous quarter.
• Normalized EBITDA decreased to INR 43.00 million from INR 53.00 million in the previous quarter.
• Normalized PAT (Profit After Tax) improved significantly to INR 128.00 million, compared to a loss of INR 6.60 million in the previous quarter.

Key Developments

• Secured a major Tier-1 contract win in the Middle East.
• Renewed an AI-based managed services contract with a Tier-1 operator in Africa.
• Launched FraudZap, a lightweight AI-powered fraud detection platform targeting smaller telcos and MVNOs.
• Enhanced the HyperSense platform with GenAI capabilities.
• Reduced Sectrio operations to 2 employees, down from 57 previously.
• Plans to invest INR 35.00 crore in its Middle East subsidiary to support growth opportunities.

Management Commentary

Nisha Dutt, Managing Director and CEO of Subex Limited, commented on the results: "Q1 results are subdued from a top-line perspective. Our business has always been H2 heavy, but one of the key reasons for muted Q1 is that there was slow order intake in the last financial year. Deals got shifted from quarter to quarter due to various budgetary and geopolitical reasons."

She added, "We have been EBITDA positive and delivered profits in six of the seven quarters. This quarter, PAT is back in black, helped by tax refund and office optimization. Our cash position is significantly stronger, thanks to sharper working capital management and one-time income gains."

Product Innovations

Subex continues to invest in next-generation products. The company recently launched FraudZap, a lightweight AI-powered fraud detection platform designed for Tier-3 telcos and MVNOs. This product offers a plug-and-play model with minimal total cost of ownership and near-zero deployment effort.

The company also announced that its HyperSense platform is now GenAI enabled, allowing it to continuously learn, adapt, and unlock new use cases as foundational AI models advance.

Future Outlook

While facing challenges in top-line growth, Subex remains focused on profitability and innovation. The company is working on building its order pipeline and expects to see momentum in subsequent quarters. Management expressed confidence in making up for the current shortfall and capturing strong tailwinds in high-potential markets.

Subex plans to continue its focus on expanding its fraud and assurance portfolio with emerging next-generation use cases, leveraging AI technologies to stay ahead in the market.

Investor Relations

The company is planning to conduct an Investor Day or roadshow in the third quarter to provide more detailed insights into its strategy and growth plans. Subex is also considering appointing an investor relations firm to improve communication with shareholders and the investment community.

As Subex navigates through its transition phase, the company remains committed to delivering value to its customers and shareholders while adapting to the evolving telecom analytics landscape.

Subex Limited , a leading telecom analytics solution provider, has reported a significant turnaround in its financial performance for the first quarter. The company posted a consolidated net profit of ₹128.00 crore, marking a substantial improvement from a loss of ₹112.00 crore in the same period last year.

Revenue Performance

Despite the positive bottom-line results, Subex experienced a slight dip in its top-line performance. The company's Q1 revenue stood at ₹664.00 crore, down from ₹682.00 crore year-over-year, representing a 2.6% decrease.

Key Financial Highlights

Factors Contributing to Profitability

The company's return to profitability can be attributed to several factors:

1. Non-operating Income: Subex received approximately ₹11.40 crore from IT refund interest.
2. Lease Termination Gain: A gain of about ₹2.60 crore was recorded due to lease termination.
3. Cost Optimization: The company implemented effective cost management strategies, particularly in its non-telco business segments.

Business Highlights

• Won a new deal from a tier-1 operator in the Middle East for HyperSense Fraud management.
• Renewed an AI Managed Services contract for a tier-1 operator in Africa.
• Launched FraudZap, a light-weight Fraud Detection platform.
• Embedded GenAI in their HyperSense offering.

Cash Position and Working Capital

Subex reported a significant improvement in its cash position, which stood at ₹135.82 crore at the end of Q1, up from ₹104.75 crore in the previous quarter. This reflects enhanced working capital efficiency and one-time income gains.

Management Commentary

The company's investor presentation highlighted its focus on reimagining and growing its business, with an emphasis on AI integration across its operations.

Future Outlook

Subex continues to leverage its strong presence in emerging markets and increased AI adoption in developed markets to drive growth. The company's strategy includes:

1. Operationalizing AI across engineering teams.
2. Building an AI-native workforce to future-proof innovation.
3. Focusing on its core telecom domain expertise and expanding its AI offerings.

Investors and analysts can gain more insights into Subex's Q1 performance during the upcoming earnings call.

Note: All financial figures are in Indian Rupees (₹).