Subex Q2 FY27 Results (NSE: SUBEXLTD)
Signal: Margins at cyclical peak
The read
The turnaround is gaining operating traction: revenue growth accelerated to +24.2% YoY from +19.7% in Q1FY27, EBITDA margin expanded to 20.7% from 18.9% QoQ, and EBIT margin reached 17.6% from 5.1% a year ago; this is the sixth consecutive quarter of margin expansion, with fixed-cost absorption now supporting the recovery, although cash fell to 3,995 lakh and depreciation has not yet risen with PPE.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹85.59 Cr | +24.2% | +7.7% |
| EBIT | ₹15.03 Cr | +326.9% | |
| Net profit | ₹14.29 Cr | +399.7% | |
| EPS | ₹0.26 | +420.0% | |
| EBIT margin | 17.6% |
P&L walk
Consolidated revenue increased to 8,559 lakh, +24.2% YoY and +7.7% QoQ, while EBITDA rose to 1,776 lakh, +182.8% YoY, as employee cost grew only 9.5% YoY; EBIT margin expanded to 17.6% from 5.1% and PAT reached 1,429 lakh from 286 lakh.
Segments
Although no segment table is disclosed, subsidiaries lifted the consolidated result: consolidated revenue of 8,559 lakh was 650 lakh above standalone revenue of 7,909 lakh and consolidated PAT of 1,429 lakh was 428 lakh above standalone PAT of 1,001 lakh.
Key positives
- Consolidated revenue reached 8,559 lakh, +24.2% YoY and +7.7% QoQ, accelerating from +19.7% YoY in Q1FY27.
- EBITDA grew 182.8% YoY to 1,776 lakh versus revenue growth of 24.2%, a 158.6 percentage-point growth gap; employee cost grew only 9.5%, depreciation declined 1.1% and finance cost declined 28.0%.
- EBITDA margin expanded to 20.7% from 9.1% a year ago, while EBIT margin improved to 17.6% from 5.1%.
- H1 revenue rose 22.0% YoY to 16,504 lakh and H1 PAT rose 81.9% to 2,851 lakh, showing the recovery is not confined to one quarter.
Key concerns
- Consolidated cash and cash equivalents declined to 3,995 lakh from 8,218 lakh at March 31, 2026, while H1 investing cash outflow was 6,563 lakh.
- Other income increased 69.7% YoY to 258 lakh; although operating profit was the main driver of PAT growth, the non-operating contribution bears monitoring.
- Consolidated trade receivables increased to 9,784 lakh from 9,351 lakh at March 31, 2026, while H1 operating cash flow declined 15.6% YoY to 2,774 lakh.
Research and educational content only. Not investment advice.