Subex Q2 profit rises fivefold as revenue climbs 24% year on year

Subex Limited reported consolidated profit after tax of Rs 14.29 crore for the quarter ended September 30, 2026, nearly five times Rs 2.86 crore a year earlier, as revenue from operations rose 24.2% to Rs 85.59 crore. Revenue also increased 7.7% sequentially from Rs 79.45 crore in the June 2026 quarter.

How did Subex's Q2 FY27 profit and revenue change?

Subex's Q2 FY27 profit after tax rose to Rs 14.29 crore from Rs 2.86 crore in Q2 FY26, while revenue from operations increased by Rs 16.68 crore to Rs 85.59 crore. Profit before tax reached Rs 17.02 crore, compared with Rs 4.22 crore a year earlier, and total income, including other income, rose to Rs 88.17 crore from Rs 70.43 crore.

The following comparison shows that the increase in profit before tax exceeded the rise in total expenses. Total expenses increased by Rs 4.94 crore year on year to Rs 71.15 crore, while total income grew by Rs 17.74 crore. Basic and diluted earnings per share were Rs 0.26 in Q2 FY27, against Rs 0.05 in Q2 FY26.

Tax expense was Rs 2.73 crore in the September 2026 quarter, compared with Rs 1.36 crore in the corresponding prior-year quarter. Employee benefits expense increased to Rs 46.52 crore from Rs 42.48 crore, while other expenses rose to Rs 21.30 crore from Rs 19.13 crore. The consolidated results cover a single operating segment, software product and related services.

What changed for Subex from the June 2026 quarter?

Subex's revenue rose by Rs 6.14 crore sequentially in Q2 FY27, while profit after tax increased by Rs 7 lakh from Rs 14.22 crore in Q1 FY27. Profit before tax increased to Rs 17.02 crore from Rs 16.46 crore, and total income rose to Rs 88.17 crore from Rs 84.14 crore. Management described the revenue increase as 7.7% sequential growth in its November 3, 2026 announcement.

Normalized earnings before interest, tax, depreciation and amortisation, or EBITDA, was Rs 17.77 crore in Q2 FY27, compared with Rs 16.87 crore in Q1 FY27. Subex defines normalized EBITDA as excluding exceptional items such as impairment allowances for trade receivables. The impairment allowance was Rs 1 lakh in Q2, compared with Rs 1.87 crore in the June quarter.

Employee benefits expense increased by Rs 6.37 crore sequentially to Rs 46.52 crore. That movement was partly offset by other expenses, which declined by Rs 1.13 crore to Rs 21.30 crore, while finance costs fell by Rs 4 lakh to Rs 59 lakh. Depreciation and amortisation increased to Rs 2.73 crore from Rs 2.60 crore.

How did Subex perform in the first half of FY27?

Subex reported first-half FY27 revenue from operations of Rs 165.04 crore and profit after tax of Rs 28.51 crore, compared with Rs 135.31 crore and Rs 15.67 crore respectively in the six months ended September 30, 2025. Profit before tax increased to Rs 33.48 crore from Rs 18.93 crore, while basic and diluted earnings per share rose to Rs 0.51 from Rs 0.28.

Total income for the six months increased to Rs 172.31 crore from Rs 152.64 crore, while total expenses rose to Rs 138.83 crore from Rs 133.71 crore. The Rs 19.67 crore increase in total income was larger than the Rs 5.12 crore rise in expenses, producing a Rs 14.55 crore increase in profit before tax.

Normalized EBITDA was Rs 34.64 crore for the first half, compared with Rs 11.58 crore in the corresponding FY26 period. Employee benefits expense increased to Rs 86.67 crore from Rs 83.65 crore, but depreciation and amortisation declined to Rs 5.33 crore from Rs 6.80 crore and finance costs fell to Rs 1.22 crore from Rs 1.81 crore.

What do Subex's balance sheet and cash flows show?

Subex reported total assets of Rs 599.07 crore at September 30, 2026, compared with Rs 551.90 crore at March 31, 2026, while total equity rose to Rs 383.33 crore from Rs 342.81 crore. Total liabilities increased to Rs 215.74 crore from Rs 209.09 crore over the same six-month period.

Within current assets, cash and cash equivalents declined to Rs 39.95 crore from Rs 82.18 crore, while other balances with banks increased to Rs 76.54 crore from Rs 18.45 crore. Current investments rose to Rs 41.76 crore from Rs 25.02 crore, and trade receivables increased to Rs 97.84 crore from Rs 93.51 crore.

For the six months ended September 30, 2026, net cash from operating activities was Rs 27.74 crore, versus Rs 32.85 crore in the prior-year period. Investing activities used Rs 65.63 crore, compared with cash generated of Rs 23.46 crore a year earlier, and financing activities used Rs 4.50 crore. The resulting net decrease in cash and cash equivalents was Rs 42.39 crore, compared with an increase of Rs 52.27 crore in the prior-year half.

What did Subex management say about Q2 FY27?

Subex Managing Director and Chief Executive Officer Nisha Dutt said management had recorded 7.7% sequential growth, 24.2% year-on-year growth and a 20.8% EBITDA margin in Q2 FY27. Dutt attributed the position to three years of rebuilding and said management was positioning Subex around artificial intelligence as decision-making, economic value and integrity converge in the industry.

Subex describes its portfolio as Business Assurance, Fraud Management and Partner Ecosystem Management for communications service providers. However, its results assess performance as one reportable segment, software product and related services, rather than publishing separate revenue or profit figures for those portfolio areas.

The Board approved the unaudited consolidated results on November 3, 2026, after the Audit Committee's recommendation. MSKC & Associates LLP conducted a limited review for the quarter and six months ended September 30, 2026; its report states that such a review provides moderate assurance and is substantially narrower in scope than an audit.

Conclusion

Subex's September-quarter results show a year-on-year increase in both revenue and profitability, with revenue of Rs 85.59 crore and profit after tax of Rs 14.29 crore. The first-half figures also improved, as revenue reached Rs 165.04 crore and profit after tax reached Rs 28.51 crore, while the balance sheet showed total equity of Rs 383.33 crore at September 30, 2026.

The next disclosed event was Subex's earnings call scheduled for November 4, 2026, from 11:00 a.m. to 12:00 p.m. Indian Standard Time. The filing provides no numerical revenue or profit target, while management has stated its plan to position the company around artificial intelligence and its telecom-focused portfolio.