Subex Q2 FY27 results: net profit ₹14.29 crore vs ₹2.86 crore, revenue up 24.2%

How did Subex perform in Q2 FY27?

Subex reported consolidated revenue of ₹85.59 crore in Q2 FY27, up 24.2% from ₹68.91 crore in Q2 FY26 and 7.7% from ₹79.45 crore in Q1 FY27. EBITDA was ₹17.76 crore, compared with ₹6.28 crore in the year-ago quarter and ₹15 crore in the previous quarter. The EBITDA margin increased to 20.8% from 9.1% year on year and from 18.9% sequentially.

Consolidated net profit was ₹14.29 crore in Q2 FY27, against ₹2.86 crore in Q2 FY26 and ₹14.22 crore in Q1 FY27. Basic EPS was ₹0.26, compared with ₹0.05 a year earlier, and was unchanged from the previous quarter. On a standalone basis, revenue was ₹79.09 crore and net profit was ₹10.01 crore, against a net loss of ₹3.36 crore in the year-ago quarter.

What changed in Subex's costs and profit?

Consolidated total expenses were ₹71.15 crore in Q2 FY27, up ₹4.94 crore or 7.5% from ₹66.21 crore in Q2 FY26. Employee cost increased by ₹4.04 crore to ₹46.52 crore, while other expenses rose by ₹1.16 crore to ₹21.31 crore. Finance costs fell by ₹0.23 crore to ₹0.59 crore and depreciation fell by ₹0.03 crore to ₹2.73 crore. There was no exceptional item in either quarter.

Other income increased by ₹1.06 crore to ₹2.58 crore from ₹1.52 crore in the year-ago quarter. Profit before tax rose by ₹12.80 crore to ₹17.02 crore, while tax expense increased by ₹1.37 crore to ₹2.73 crore. The filing did not provide a further explanation for the year-on-year changes in employee costs, other expenses, other income or tax.

How did the first half of FY27 go?

In H1 FY27, Subex reported consolidated revenue of ₹165.04 crore, up ₹29.73 crore or 22.0% from ₹135.31 crore in H1 FY26. Total income rose by ₹19.67 crore to ₹172.31 crore from ₹152.64 crore, while profit before tax increased by ₹14.55 crore to ₹33.48 crore from ₹18.93 crore.

Net profit for the first half was ₹28.51 crore, compared with ₹15.67 crore in H1 FY26, an increase of ₹12.84 crore or 81.9%. Basic EPS rose to ₹0.51 from ₹0.28.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹599.07 crore, compared with ₹551.9 crore at 31 March 2026. Total equity increased to ₹383.33 crore from ₹342.81 crore, while trade receivables rose to ₹97.84 crore from ₹93.51 crore and trade payables fell to ₹23.76 crore from ₹24.92 crore. The company reported no borrowings at either balance-sheet date. Cash and cash equivalents fell to ₹39.95 crore from ₹82.18 crore.

H1 FY27 operating cash flow was ₹27.74 crore, compared with ₹32.85 crore in H1 FY26. Investing cash flow was negative ₹65.63 crore, against positive ₹23.46 crore a year earlier, while financing cash flow was negative ₹4.5 crore compared with negative ₹4.04 crore. Capital expenditure was ₹3.51 crore in H1 FY27 and ₹3.3 crore in H1 FY26.

How has Subex done over the last 8 quarters?

Revenue rose for three consecutive quarters on a year-on-year basis and reached ₹85.59 crore in Q2 FY27 from a low of ₹66.4 crore in Q1 FY26. Net profit increased for two consecutive quarters on a year-on-year basis, reaching ₹14.29 crore after the ₹9.93 crore reported in Q4 FY26. The EBITDA margin also moved higher, reaching 20.8% in Q2 FY27 from 5.9% in Q1 FY26.

Across the longer series, revenue bottomed at ₹66.4 crore in Q1 FY26 and net profit bottomed at a loss of ₹17.6 crore in Q4 FY25. The EBITDA margin bottomed at -18.4% in Q4 FY25 and peaked at 20.8% in Q2 FY27. Revenue and profit were both higher in the latest quarter than in the preceding quarter, while the margin also increased.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026 on 3 November 2026. The company also filed its Q2 FY27 investor presentation and scheduled an earnings call for 4 November 2026. The same-day filings did not announce a dividend, fund raise or appointment.

What did Subex's management say?

Management declined to provide formal FY27 guidance and expressed a high-single-digit to double-digit revenue growth aspiration over the next year. It said margins should remain durable without giving a quarterly range, and that growth should not come at the cost of the bottom line. Management estimated that INR depreciation added 2–3 percentage points to year-on-year revenue growth.

Management said Subex is repositioning around a platform-neutral AI layer for decision integrity and economic assurance. Three technically successful proof-of-concepts were being converted into commercial arrangements, while Hypersense deployment times fell 15–20%. Cash will be directed primarily toward R&D and acquisition opportunities, with an acquisition pipeline under evaluation.

Management reiterated that the employee trust share purchase would proceed in stages in Q3 FY27, subject to no unpublished price-sensitive information being held. It identified Middle East volatility, U.S. election outcomes, large telcos’ in-house development and the unestablished market position of AI decision integrity as risks. CEO Nisha Dutt said, “The real test is if we can make the growth repeatable, profitable, and sustainable, and that remains our focus.”

How did Subex shares react?

By the next day’s close, the stock was up 7.0% from the pre-results close. On earlier result days, the reaction-day moves were -0.2% on 13 July 2026, 3.7% on 12 May 2026, 1.4% on 10 February 2026, 9.7% on 11 November 2025, 5.2% on 11 August 2025, 10.8% on 2 May 2025, -2.2% on 12 February 2025 and 3.5% on 8 November 2024.