Route Mobile Q2 FY27 Results (NSE: ROUTE)
Signal: Loss reversed
The read
The operating recovery is incomplete: revenue grew 5.4% YoY to ₹1,179.67 Cr and India turned stronger, but approximate EBITDA fell 15.4% to ₹115.02 Cr as employee and other expenses outpaced sales, keeping operating margin at 9.7% versus 12.1% a year ago. PAT of ₹82.55 Cr is not a clean improvement because the comparison benefits from the absence of the ₹135.87 Cr exceptional charge.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,179.67 Cr | +5.4% | +2.4% |
| EBIT | ₹91.18 Cr | -19.4% | |
| Net profit | ₹82.55 Cr | N/M (vs ₹2.00 Cr) | |
| EPS | ₹12.63 | N/M | |
| EBIT margin | 9.7% |
P&L walk
Revenue recovered to ₹1,179.67 Cr, +5.4% YoY, but EBITDA declined to approximately ₹115.02 Cr from ₹135.95 Cr as employee and other expenses rose faster than sales; PAT of ₹82.55 Cr was boosted by the absence of the ₹135.87 Cr exceptional charge in the prior-year quarter.
Segments
India was the momentum engine: revenue grew 33.9% YoY to ₹302.22 Cr and segment result was ₹27.11 Cr versus a ₹4.00 Cr loss sequentially, while overseas revenue declined 1.6% YoY to ₹1,051.89 Cr and its result fell 20.6% to ₹64.40 Cr.
Key positives
- India segment revenue rose 33.9% YoY to ₹302.22 Cr and its result improved to ₹27.11 Cr from a ₹4.00 Cr loss in the immediately preceding quarter.
- Revenue returned to YoY growth at ₹1,179.67 Cr, +5.4% YoY and +2.4% QoQ, after the recent Q1FY27 revenue of ₹1,151.51 Cr.
- The gross margin was broadly stable at 22.4%, up 30bps YoY, as messaging services cost remained controlled at 77.6% of revenue versus 77.9% a year ago.
- The group had no borrowings at 30 September 2026 and declared a second interim dividend of ₹4 per share.
Key concerns
- Approximate EBITDA declined 15.4% YoY to ₹115.02 Cr and operating margin contracted 240bps to 9.7% as employee benefits rose 26.7% and other expenses rose 47.2%.
- Overseas revenue, the larger segment at ₹1,051.89 Cr, declined 1.6% YoY and overseas segment result fell 20.6% to ₹64.40 Cr.
- H1 operating cash flow fell 83.5% YoY to ₹33.34 Cr while trade receivables increased to ₹946.93 Cr, indicating weak cash conversion relative to reported earnings.
- The ₹82.55 Cr PAT comparison is heavily flattered by the absence of the ₹135.87 Cr exceptional charge recorded in Q2FY26.
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