Subex Limited , a leading telecom analytics solutions provider, has reported a return to operational profitability in the second quarter of fiscal year 2026, marking its first profitable quarter since June 2022. The company also announced new deals worth INR 15 million, signaling potential growth in its order book.

Financial Performance

Subex reported quarterly revenue of INR 68.90 crores for Q2 FY26, compared to INR 66.40 crores in the previous quarter, representing a 3.77% quarter-on-quarter growth. The company achieved PAT (Profit After Tax) positive results without any exceptional items, indicating a turnaround in its core operations.

Key Highlights

• Return to Profitability: Subex has achieved operational profitability for the first time since June 2022, with positive PAT results excluding exceptional items.
• Revenue Growth: The company's revenue increased from INR 66.40 crores in Q1 FY26 to INR 68.90 crores in Q2 FY26.
• New Deals: Subex announced deals worth INR 15 million, potentially strengthening its order book.
• Board Reconstitution: The company plans to reconstitute its board before the Q3 results announcement, following the departure of its chairman and two independent directors after the Annual General Meeting (AGM).

Management Commentary

Nisha Dutt, Managing Director and CEO of Subex Limited, commented on the results during the earnings call: "For the first time since June 20, 2022, we have achieved operational profitability. We are PAT positive without any exceptional items. This is a key milestone in our journey, which strengthens our ability to reinvest in growth."

Future Outlook

Subex is focusing on reconstituting its board and strengthening its management team. The company is also working on product development, with a particular emphasis on making its offerings GenAI native and more lightweight for easier deployment.

Dutt added, "We are seeing an actual uptick in our order funnel this year. Our order funnel continues to be strong, and we are targeting a funnel of INR 180 million to INR 200 million for the current fiscal year."

Investor Relations

Subex plans to host an Investor Day in the coming weeks, where it will share detailed product roadmaps and future strategies with shareholders. The company is also working on improving its engagement with investors and analysts.

As Subex continues its journey towards sustained profitability and growth, investors will be watching closely to see if the company can maintain its positive momentum in the coming quarters.

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:

*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.