The Board approved the proposal of Subex Assurance LLP (a wholly owned subsidiary) to make further investment in Subex Middle East, a step down wholly owned subsidiary of the Company
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Subex Limited's Board, at its August 11, 2025 meeting, approved a proposal for wholly owned subsidiary Subex Assurance LLP to invest up to AED 14.64 million (about ₹35.12 crore) in step-down subsidiary Subex Middle East (SME) in the form of equity subscription. The investment is aimed at supporting working capital needs for SME's business growth in the Middle East and Africa region, and is expected to be completed by September 15, 2025. The transaction is classified as an exempted related party transaction since both entities are wholly owned. Along with this, the Board approved Q1 FY26 (quarter ended June 30, 2025) results, which showed a strong turnaround: standalone net profit of ₹687 lakhs versus a loss of ₹1,594 lakhs in Q1 FY25, and consolidated net profit of ₹1,281 lakhs versus a loss of ₹1,121 lakhs. Revenue, however, was broadly flat at ₹6,256 lakhs (standalone) and ₹6,640 lakhs (consolidated), compared to the year-ago quarter.
The capital infusion into Subex Middle East signals continued financial support for the overseas growth engine, but investors should note that SME has a negative net worth of AED 15.04 million, suggesting it has been burning cash. The sharp swing to profitability in Q1 FY26 is encouraging and should boost sentiment, though the flat-to-slightly-down revenue trend warrants monitoring.