Subex Limited: Navigating a Turnaround with AI and Renewed Focus in Q2 FY26

Subex Limited, a prominent player in the telecom and AI solutions space, has marked a significant milestone in its Q2 FY26 performance, signaling a potential turnaround. The company reported achieving operational profitability and positive Profit After Tax (PAT) for the first time since June 2022, a feat driven purely by operational performance rather than one-time gains. This achievement underscores a period of strategic recalibration and disciplined execution, setting a hopeful tone for its future trajectory.

For the quarter ended September 30, 2025, Subex's revenue saw a 4% quarter-on-quarter growth, reaching INR 68.91 crore. Normalized EBITDA significantly improved to INR 7.30 crore, compared to INR 4.28 crore in the previous quarter, indicating stronger contribution margins. Normalized PAT stood at INR 3.88 crore, a substantial improvement from INR 0.71 crore in Q1 FY26 (excluding one-time gains). This return to sustained profitability, without reliance on exceptional items, is a critical step in the company's journey to reinvest in growth and strengthen its fundamentals.

Financial Metric (INR Crore)	Q2 FY25	Q1 FY26	Q2 FY26
Revenue	71.08	66.40	68.91
Normalized EBITDA	3.26	4.28	7.30
Normalized PBT	0.14	14.71	5.24
Normalized PAT	(2.23)	12.81	3.88
Closing Cash	-	135.82	135.89

Strategic Initiatives and Market Traction

Subex's strategic focus revolves around

Dive deeper into SUBEXLTD

Frequently Asked Questions

Subex Limited achieved operational profitability and positive PAT for the first time since June 2022, with Q2 revenue growing 4% QoQ to INR 68.91 crore. Normalized EBITDA significantly improved to INR 7.30 crore.

The company is actively transforming all its products to be GenAI native, aiming for lighter versions and easier deployment. It is also exploring AI use cases in fraud management and other areas.

Following the AGM, the Chairman and two independent directors stepped down. The company is in the process of reconstituting the Board with leaders aligned with its vision, aiming to complete this before the Q3 results.

Management acknowledges the challenge and is focusing on deepening relationships within existing accounts through new product offerings, expanding the customer base, and strengthening the sales team with a new Head of Sales.

Due to negative retained earnings, regulatory hurdles currently prevent the company from undertaking buybacks or paying dividends. Free cash flows are prioritized for reinvestment into businesses for growth.

The company announced deals worth over $15 million and is targeting an order funnel of INR 18-20 crore for the current financial year, indicating a robust order book.

The company follows a 'building with the customer' approach, involving multi-customer POCs, collecting feedback on product usability and features, and conducting regular voice of customer sessions.

Content

Subex Limited: Navigating a Turnaround with AI and Renewed Focus in Q2 FY26
Strategic Initiatives and Market Traction
Frequently Asked Questions

Related Blogs

KSOLVES

Q2 FY26

Ksolves India Limited: Navigating Growth with Strategic Clarity and Product Innovation in Q2 FY26

Oct 27, 2025

Beta

Multibagg AI is an AI powered stock research and analysis platform. We provide data, information, content, and analytics for publicly traded Indian companies listed on NSE and BSE. AI can make mistakes, check important information.

Prices might be delayed by a few minutes.

products

Utility

company

Join our Exclusive Community