Route Mobile reports strong Q2 FY26 recovery, profitability grows

Route Mobile Limited recorded a strong recovery in Q2 FY26, with revenue from operations expanding sequentially by 6.5% to INR 11,194 million, alongside a gross profit increase of 9.8% to INR 2,471 million. The company's gross profit margin improved by 70 basis points sequentially to 22.1%. Adjusted EBITDA saw a 15.5% sequential rise to INR 1333 million, with an adjusted EBITDA margin of 11.9%.

Profit before tax and exceptional items surged by 80% sequentially to INR 1379 million. New product revenue demonstrated a solid 13.1% sequential growth, outperforming the consolidated revenue growth, driven by omnichannel and integrated solutions adoption. Notably, the company’s portfolio is composed of 85% transactional and 15% promotional SMS traffic.

Strategic initiatives, including new product launches and market expansion, are delivering tangible results. The company is deepening its focus on the telecom API ecosystem and has expanded into the mobility and transportation sector, securing new customers and partnerships with entities like Tech Mahindra. The company also confirmed that related party transactions, primarily with Telesign, contribute approximately 15% of total revenue and yield an EBIT margin of 10% to 11%.