Route Mobile Declares ₹3 Dividend, Q3 Profit Hit by ₹136 Crore Write-Off

Introduction

Route Mobile Limited announced its unaudited financial results for the third quarter and nine months ended December 31, 2025, following a board meeting on February 9, 2026. The quarter was marked by a significant exceptional loss that substantially impacted consolidated profitability. Despite this, the company demonstrated confidence in its financial health by declaring a third interim dividend for shareholders. Alongside the financial disclosures, the company also announced key changes in its top leadership, appointing a new Chief Executive Officer.

Third Interim Dividend Declared

A key highlight for investors was the board's decision to declare a Third Interim Dividend for the financial year 2025-26. The dividend is set at ₹3 per equity share, on a face value of ₹10 each. The record date for determining shareholder eligibility for this dividend has been fixed as February 13, 2026. The company has stated that the dividend payment will be completed within 30 days from the date of declaration. As per current regulations under the Finance Act, 2020, this dividend income will be taxable in the hands of the shareholders, and the company will deduct tax at source (TDS) at the applicable rates.

Consolidated Financial Performance

On a consolidated basis, Route Mobile reported a total income of ₹1,119.93 crores for the third quarter. The company's operational performance before considering one-off items remained steady, with Profit Before Exceptional Item and Tax standing at ₹135.21 crores. However, the quarter's profitability was severely affected by a substantial exceptional charge. This resulted in the Profit Before Tax (PBT) falling to just ₹2.00 crores. The final Profit for the Period attributable to the owners of the parent company was recorded at ₹97.70 crores, while the Total Comprehensive Income for the quarter was ₹118.80 crores.

Understanding the Exceptional Loss

The primary factor behind the sharp decline in quarterly profit was a negative exceptional item amounting to ₹135.87 crores. This charge was attributed to two specific events related to vendor contracts. The larger component, a write-off of ₹107.96 crores, stemmed from a partial ruling in an arbitration case that favored a vendor concerning SMS volume guarantees. The company had to write off the remaining net advance given to this vendor. The second component was a write-off of a ₹27.91 crore advance provided to another vendor who subsequently ceased business operations. These events highlight specific operational and contractual risks faced by the company.

Standalone Performance Highlights

In contrast to the consolidated figures, Route Mobile's standalone performance presented a more stable financial picture. The standalone entity generated a total income of ₹207.42 crores for the quarter. Standalone Profit Before Tax was ₹40.66 crores, showing an improvement from ₹38.92 crores in the corresponding quarter of the previous year. Interestingly, the standalone financials included a positive exceptional item—a credit of ₹28.08 crores, which was a reversal of a write-off from a previous period. This indicates that the core Indian operations remained profitable and were not directly impacted by the issues affecting the consolidated results.

Financial Summary Table: Q3 FY2025-26

Key Management Changes

Effective February 9, 2026, the Board of Directors approved significant changes to the company's leadership structure. Mr. Rajdipkumar Gupta has been re-designated from his previous role to that of Managing Director. Simultaneously, the company announced the appointment of Mr. Tushar Agnihotri as the new Chief Executive Officer. These strategic appointments are aimed at steering the company through its next phase of growth and addressing the operational challenges highlighted in the quarterly results.

Analysis and Outlook

The declaration of an interim dividend despite a challenging quarter signals the management's confidence in the company's underlying cash flows and long-term business model. However, the substantial write-offs serve as a reminder of the inherent risks in vendor management and international contracts within the communications platform industry. Investors will likely monitor how the new leadership team addresses these risks and strengthens internal controls to prevent similar occurrences. The divergence between the strong standalone performance and the strained consolidated results suggests that the issues are concentrated in specific subsidiaries or international operations, rather than the core business.

Conclusion

Route Mobile's third-quarter results for FY2025-26 present a mixed picture. While the continued dividend payout is a positive for shareholders, the large exceptional loss has overshadowed operational performance. The appointment of a new CEO and the re-designation of the Managing Director mark a pivotal moment for the company. The focus for the new leadership will be on navigating contractual complexities, mitigating operational risks, and ensuring that the company's growth translates into sustainable profitability across all its entities.