Subex Limited Q2 FY27 revenue rose 24.2% to Rs 85.59 crore
Key highlights
- Subex Q2 FY27 revenue rose 24.2% year on year to Rs 85.59 crore.
- Normalised EBITDA increased 5.3% sequentially to Rs 17.77 crore in Q2 FY27.
- Cash and cash equivalents rose to Rs 197.99 crore on 30 September 2026 from Rs 184.8 crore on 30 June 2026.
- Licence implementation and customisation represented 42% of Q2 FY27 revenue, up from 33% in Q1 FY27.
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Subex Limited reported Q2 FY27 revenue of Rs 85.59 crore, up 24.2% from Q2 FY26, while normalised EBITDA reached Rs 17.77 crore and rose 5.3% sequentially. Revenue also increased 7.7% from Rs 79.45 crore in Q1 FY27, which management linked to backlog execution and billing milestones.
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How did Subex perform in Q2 FY27?
Subex reported revenue of Rs 85.59 crore in Q2 FY27, compared with Rs 68.91 crore in Q2 FY26 and Rs 79.45 crore in Q1 FY27. That represented year-on-year growth of 24.2% and quarter-on-quarter growth of 7.7%. Normalised EBITDA, meaning earnings before interest, tax, depreciation and amortisation, was Rs 17.77 crore, compared with Rs 4.91 crore a year earlier and Rs 16.87 crore in the preceding quarter.
Normalised EBITDA margin was 20.8% in Q2 FY27, compared with 21.2% in Q1 FY27, a sequential decline of 40 basis points. Subex attributed the increase in normalised EBITDA amount to operational efficiencies, accelerated execution of its order backlog and achievement of key billing milestones. The company defines its normalised measures as excluding exceptional items and impairment allowance for trade receivables.
Why did Subex PBT move lower sequentially?
Subex’s normalised profit before tax, or PBT, was Rs 17.03 crore in Q2 FY27, 7.1% below Rs 18.33 crore in Q1 FY27. The company said the Q1 FY27 figure included a one-time tax refund of Rs 2.88 crore. This means the reported quarter-on-quarter PBT comparison included an item that was not repeated in Q2 FY27.
Excluding the one-time refund, Subex said normalised PBT grew 10.2% in Q2 FY27 on higher revenue. Normalised profit after tax, or PAT, was Rs 14.3 crore, compared with Rs 16.09 crore in Q1 FY27, while normalised PAT margin was 16.7% versus 20.3%. PAT including exceptional items and impairment allowance was Rs 14.29 crore in Q2 FY27, close to Rs 14.22 crore in Q1 FY27.
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Which revenue streams and regions changed in Q2 FY27?
Subex’s Q2 FY27 service mix was led by licence implementation and customisation, which accounted for 42% of revenue, up from 33% in Q1 FY27 and 29% in Q2 FY26. Managed Service contributed 25%, down from 29% in both comparison quarters. Support and others represented 33%, compared with 38% sequentially and 42% a year earlier.
Europe, the Middle East and Africa, or EMEA, accounted for 66% of Q2 FY27 revenue, rising from 58% in Q1 FY27 but remaining below 68% in Q2 FY26. Asia-Pacific and the rest of the world represented 20%, down from 27% in Q1 FY27. The Americas contribution declined to 11% from 13%, while India increased to 3% from 2%.
What orders and liquidity measures did Subex report?
Subex disclosed five Q2 FY27 order developments: a Partner Ecosystem Management deal with an Asia-Pacific operator, a Fraud Management group-account win in Africa for two operating companies, and a Phase 2 Partner Ecosystem Management order from a Tier 1 Middle East operator. The company also cited a new European Partner Ecosystem Management customer and an Americas deal for Hypersense BAM.
Cash and cash equivalents stood at Rs 197.99 crore on 30 September 2026, compared with Rs 184.8 crore on 30 June 2026. Earnings per share were Rs 0.26 in both Q2 FY27 and Q1 FY27, compared with Rs 0.05 in the corresponding prior-year quarter. Subex also said its minority investments in PrivaSapien and OnGrid grew about five times and two times, respectively, strengthening consolidated net worth.
Conclusion
Subex’s Q2 FY27 results combined higher revenue with a sequential increase in normalised EBITDA, even as EBITDA margin moved 40 basis points lower to 20.8%. The service mix moved towards licence implementation and customisation, which increased to 42% of revenue, while EMEA remained the largest geographic contributor at 66%.
The next disclosed event is Subex’s Q2 FY27 earnings call, scheduled for 11:00 a.m. Indian Standard Time on 4 November 2026. Investors can also watch the execution and billing progress associated with the five Q2 order developments, as management attributed the quarter’s EBITDA growth to backlog execution and billing milestones.