Route Mobile FY25 Results: Revenue Jumps 13.7%, Profit Dips

Introduction to Route Mobile's FY25 Performance

Route Mobile Limited (RML) has released its audited financial results for the fiscal year ending March 31, 2025, revealing a year of significant top-line growth coupled with bottom-line pressures. The company's consolidated total income saw a robust increase, while net profit experienced a decline compared to the previous fiscal year. Alongside the financial report, the company announced key leadership changes and a consistent dividend policy, signaling a period of transition and strategic realignment.

Detailed Financial Highlights for FY2025

Route Mobile's consolidated total income for FY25 stood at ₹4,622.41 crores, marking a 13.7% increase from ₹4,063.77 crores in FY24. This growth in revenue indicates sustained demand for its communication platform as a service (CPaaS) offerings. However, this growth did not translate to higher profitability. The Profit After Tax (PAT) for the year fell to ₹333.93 crores from ₹388.84 crores in the previous year. Consequently, the consolidated basic Earnings Per Share (EPS) decreased to ₹50.69 from ₹59.95 in FY24. The company's EBITDA (Non-GAAP) showed a marginal increase, reaching ₹527.76 crores compared to ₹511.06 crores in FY24, suggesting that while operational performance was stable, increased tax expenses and other costs impacted the net profit.

Shareholder Returns and Dividend Policy

Despite the dip in profits, Route Mobile's board has maintained its commitment to rewarding shareholders. The directors have recommended a final dividend of ₹2 per equity share for FY25. This is in addition to the interim dividend of ₹9 per share paid out earlier in the year, bringing the total dividend for the financial year to ₹11 per equity share. This total dividend payout is consistent with the ₹11 per share distributed for the financial year ended March 31, 2024, reflecting the board's confidence in the company's long-term financial health and cash flow stability.

Strategic Corporate and Regulatory Actions

During the fiscal year, Route Mobile undertook several important strategic initiatives. The company's UK subsidiary acquired a significant stake in PT Route Mobile Indonesia to comply with local investment laws, strengthening its presence in the Indonesian market. Furthermore, the company successfully complied with the Securities and Exchange Board of India (SEBI) regulations regarding Minimum Public Shareholding (MPS). This was achieved by reducing the promoter's holding to below 75% through a combination of a block sale and an Offer for Sale (OFS) in July and September 2024. The company also confirmed that there were no deviations in the utilization of funds raised from its Initial Public Offering (IPO) in 2020.

Significant Leadership and Board Restructuring

FY25 was a year of notable changes in Route Mobile's leadership. The company announced the resignation of Mr. Gautam Badalia as Chief Executive Officer, effective July 17, 2025. Subsequently, Mr. Rajdipkumar Gupta was re-designated as the Managing Director & CEO from July 18, 2025. The board also appointed Mr. Mark James Reid as the new Chairman of the Board, effective April 17, 2025. Other key appointments include Mr. Tejas Shah as the new Company Secretary & Compliance Officer. The board was further strengthened with the appointment of several new non-executive and independent directors, including Mr. Guillaume Boutin, Mr. Prakash Advani, Mrs. Harita Gupta, and Mr. Anil Kumar Chanana, whose appointments were approved by members in August 2024.

Governance and Board Oversight

Route Mobile continues to uphold strong corporate governance standards. The Board of Directors met nine times during the financial year to discuss strategy and review performance. The company maintains five board committees, including Audit, Risk Management, and Nomination and Remuneration, to ensure effective oversight. All independent directors have submitted declarations confirming they meet the criteria of independence as prescribed by regulations, reinforcing the board's integrity and accountability.

Analysis and Forward Outlook

The financial results of FY25 paint a mixed picture. The strong revenue growth underscores the company's solid market position and the increasing demand for its services. However, the decline in profitability highlights potential challenges from rising operational costs or strategic investments aimed at future growth. The significant leadership overhaul, including the appointment of a new Chairman and a re-designated CEO, suggests that the company is positioning itself for its next phase of expansion. With regulatory compliance actions completed and a stable dividend policy in place, the new leadership team is tasked with navigating industry headwinds and steering the company back towards profitable growth.

Conclusion

In summary, Route Mobile's performance in FY2025 was characterized by robust revenue expansion, a contraction in net profit, and a major leadership transition. The company's ability to maintain its dividend payout signals underlying financial stability. Investors will be closely watching how the new management team leverages the company's market position to improve profitability and drive shareholder value in the coming fiscal year.