Subex Limited has delivered a strong financial performance in Q3FY26, showcasing improved operational efficiency and sustained growth momentum. The company announced its quarterly results ahead of the earnings call scheduled for February 11, 2026, demonstrating significant improvements across key financial metrics.

Financial Performance Overview

The company's revenue performance showed steady growth with Q3FY26 revenue reaching ₹7,079 lakhs, marking a 2.7% increase from the previous quarter's ₹6,891 lakhs. This represents a recovery from the year-ago period when revenue stood at ₹7,269 lakhs.

Margin Expansion and Profitability

The most notable achievement was the significant improvement in profitability metrics. Normalized EBITDA grew substantially by 27.3% sequentially to ₹929 lakhs in Q3FY26, compared to ₹730 lakhs in Q2FY26. This improvement was primarily supported by ongoing operational efficiencies implemented across the organization.

The normalized EBITDA margin expanded dramatically to 13.1% in Q3FY26 from 5.5% in Q3FY25, representing a remarkable improvement of 762 basis points on a year-on-year basis. Normalized profit before tax stood at ₹1,051 lakhs in the quarter compared to ₹524 lakhs in Q2FY26, reflecting a doubling of profitability on a quarter-on-quarter basis.

Business Highlights and Strategic Wins

Subex achieved several significant business milestones during Q3FY26, strengthening its market position across key regions:

New Deal Acquisitions

• Won a new deal for Fraud Management from a leading operator in Europe
• Secured Fraud management upgrade deal from a tier 1 Middle East operator
• Tier-1 operator in APAC renewed Managed Services
• Won a BAFM consultancy engagement from a tier-1 operator in Middle East

Strategic Initiatives

• Presented on Future of Fraud Management at TARS event in Indonesia
• Rebranded Subex Identity to reflect changing market dynamics
• Hosted Global User conference at Athens in November 2025 after two years

Revenue Distribution and Regional Performance

The company's revenue composition by service type remained relatively stable, with Managed Services contributing 39% of total revenue in Q3FY26, License implementation and Customization accounting for 31%, and Support and others representing 30% of the revenue mix.

Geographically, EMEA continued to be the largest revenue contributor at 65% in Q3FY26, followed by APAC and ROW at 21%, America at 12%, and India at 2%. This distribution reflects the company's strong presence in emerging markets and developed regions.

Financial Position and Cash Management

Subex maintained robust financial health with several positive indicators. Days Sales Outstanding improved to approximately 90 days in Q3FY26 from around 100 days in Q2FY26, excluding unbilled trade debtors. On a year-on-year basis, DSO reduced by 29 days, indicating improved collection efficiency.

The company's cash and cash equivalents stood at ₹15,412 lakhs as of December 31, 2025, compared to ₹13,589 lakhs on September 30, 2025, reflecting continued liquidity stability. Additionally, Subex received a tax refund of ₹739 lakhs in Q3FY26, further strengthening its cash position.

Organizational Strengthening

During the quarter, Subex focused on strengthening its organizational structure by onboarding two Independent Directors on the Subex Board and bringing in a new HR Head and Legal Counsel. These appointments are expected to enhance governance and operational capabilities as the company continues its growth trajectory.

Subex Limited has secured a major 3-year Business Assurance engagement with a leading Tier-1 telecom operator in the Middle East, valued at approximately USD 1.25 million. The announcement was made on February 10th, 2026, through a regulatory disclosure under SEBI Listing Regulations.

Contract Details and Scope

The comprehensive engagement involves implementing Subex's next-generation Business Assurance platform and providing ongoing support services. The contract is designed to strengthen revenue protection, risk management, and operational transparency across the operator's nationwide operations.

Strategic Partnership and Selection Criteria

This engagement marks a significant renewed partnership with a long-standing customer, demonstrating Subex's ability to maintain and deepen client relationships. The company was selected based on several key factors:

• Credible migration approach that preserves live assurance operations
• Demonstrated commitment and reliability over time
• Ability to meet stringent expectations across multiple stakeholder groups including business users, IT, procurement, and legal teams

Management Commentary

Nisha Dutt, MD & CEO of Subex, commented on the contract win: "This win reinforces Subex's position as a trusted partner to operators on their digital transformation journey while safeguarding/protecting revenues. We are delighted to deepen our collaboration and support the operator in building a more resilient and intelligent assurance ecosystem, delivering a smooth migration and a modern assurance foundation that supports the customer's next phase of growth."

Company Background

Subex is a telecom AI solutions company that enables Communications Service Providers globally to deliver connected experiences to their customers. Founded in 1994, the company brings over 30 years of expertise in helping CSPs maximize revenue and profitability. The company's portfolio spans Business Assurance, Fraud Management, and Partner Ecosystem Management, with over 300 installations across 100+ countries.