India · Delayed Price · Currency is INR Route Mobile Earnings Call Transcripts
Fiscal Year 2026
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Gross profit margins expanded in FY 2026 as low-margin ILD business exited and higher-margin domestic and new product revenues grew. Revenue declined year-on-year, but profitability improved, with a 50% dividend increase and mid to high single-digit revenue growth expected next year.
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Q3 saw revenue decline due to lower ILD volumes, but gross profit and margins expanded on a shift to higher-margin domestic and new product business. Leadership transition and strategic partnerships are expected to drive future growth, with a continued focus on profitability and quality revenue.
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Q2 saw strong sequential and year-over-year growth in revenue, gross profit, and margins, driven by new products, strategic partnerships, and disciplined execution. Exceptional items impacted reported profit, but core profitability remains robust, with a positive outlook for H2.
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Revenue declined 4.8% YoY due to SMS market softness and loss of a major client, but gross and EBITDA margins improved sequentially as the business shifted focus to higher-margin products and platform solutions. Management expects growth to revive through new product lines and operator partnerships.
Fiscal Year 2025
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Revenue grew 15.5% YoY in Q4 and 13.7% for FY25, with strong cash generation and new product growth. Gross and EBITDA margins declined due to cost synergies and industry shifts, but margin improvement is expected as platform and cross-sell initiatives ramp up.
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Proximus Global integration is driving Route Mobile’s international expansion and product diversification. Revenue grew 13.1% YoY for nine months FY 2025, with strong cash flow and stable margins despite industry headwinds and one-off costs. Guidance remains at 15% CAGR growth and 12.5%-13% EBITDA margin.
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Achieved record Q2 revenue and strong EBITDA growth despite seasonality and headwinds, with robust H2 outlook driven by festive demand, new deals, and synergies. Interim dividend declared; guidance for 18%-22% revenue growth and 13% EBITDA margin reaffirmed.
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Revenue grew 14% YoY and 8.5% sequentially, with strong gains in India and new products. FY25 guidance is 18%-22% revenue growth and 13% EBITDA margin, supported by synergies from the Proximus acquisition and large deals like Microsoft.