Subex Q1 FY27 Results (NSE: SUBEXLTD)

5 Aug 2026 · Analysis by Alpha Inflection

Signal: Growth reaccelerated

The read

The operating trajectory has inflected sharply upward: consolidated revenue reached ₹7,945 lakh, +19.6% YoY and +8.9% QoQ after three quarters of YoY decline, while the reported EBITDA margin was 24.8% and normalized EBITDA rose 294.2% YoY to ₹1,687 lakh; however, the sustainability of bottom-line improvement is clouded by other income of ₹469 lakh, or 28.5% of PBT, and by the absence of a clean authoritative consolidated PAT figure.

P&L walk

Consolidated revenue rose to ₹7,945 lakh, +19.6% YoY and +8.9% QoQ, while EBITDA margin was reported at 24.8%; employee expense fell 2.5% YoY to ₹4,015 lakh, but earnings quality is weakened by other income of ₹469 lakh, equal to 28.5% of PBT.

Key positives

• Consolidated revenue was ₹7,945 lakh, up 19.6% YoY and 8.9% QoQ, reversing the -2.6% YoY trend in Q3FY26.
• Normalized EBITDA increased 294.2% YoY to ₹1,687 lakh, while employee expense declined 2.5% YoY to ₹4,015 lakh despite 19.6% revenue growth.
• Standalone PAT rose 24.5% YoY to ₹855 lakh and standalone EPS increased 25.0% YoY to ₹0.15.
• Management said profitability improvement was driven by disciplined execution, operational efficiencies and accelerated conversion of the order backlog.

Key concerns

• Consolidated other income of ₹469 lakh represented 28.5% of PBT, making reported earnings more dependent on non-operating income.
• The proposed ESOP 2026 can cover up to 5% of total paid-up equity shares, creating potential future dilution.
• Consolidated impairment allowance for trade receivables increased 434.3% YoY to ₹187 lakh.
• The consolidated XBRL block reports PAT of ₹0 lakh despite the filing statement showing a consolidated net-profit line, creating a data-quality inconsistency that should be reconciled.

Earnings quality: includes non-operating other income

View original filing

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