Subex Net Profit Surges 393% YoY to ₹14.3 Crore in Q2 FY27 as Turnaround Takes Hold

Key numbers

Market Cap	₹914.38 CrSmall Cap
P/E Ratio	30.54xSector: 38.49x
RSI	39.59Neutral Zone
1-Yr Price Change	26.32%LTM Return

Key highlights

• Consolidated revenue from operations grew 24.2% year-on-year to ₹85.6 crore
• Net profit witnessed a 393.1% surge compared to ₹2.9 crore in Q2 FY26
• Operating margins expanded to 19.3%, up from 6.0% in the corresponding quarter last year
• Company secured a major five-year APAC contract worth ₹47 crore ($5.0 million) in September 2026
• FII holding increased by 48 basis points during the quarter to reach 1.08%

Turnaround Strategy Drives Sequential Revenue Growth

Subex Limited sustained its operational momentum in the second quarter of FY27, reporting consolidated revenue from operations of ₹85.6 crore. This figure represents a 7.7% sequential increase from the ₹79.5 crore recorded in Q1 FY27, marking what management describes as the conclusion of a three-year disciplined rebuilding phase. Other income for the quarter stood at ₹2.6 crore, compared to ₹4.7 crore in the preceding quarter.

The revenue growth is primarily attributed to the company's focus on AI-native technology and telecom analytics, which has allowed it to scale its core business segments following a period of structural transformation.

Margin Expansion and Profitability Metrics

• Profit Before Tax (PBT) reached ₹17.0 crore, compared to just ₹4.2 crore in Q2 FY26.
• Operating margins witnessed a sharp expansion to 19.3%, a significant improvement from the 6.0% reported a year ago.
• Total income for the quarter stood at ₹88.2 crore, up from ₹70.4 crore in the same period last year.
• Employee benefit expenses remained the largest cost component at ₹46.5 crore.
• Adjusted profit for the quarter grew by 433.3% year-on-year, highlighting enhanced operational efficiency.
• Basic Earnings Per Share (EPS) for the quarter improved to ₹0.26 from ₹0.05 in Q2 FY26.

Strategic Deal Wins Support Double-Digit Growth Guidance

The quarterly performance is supported by several high-value contract wins in key global markets. On September 23, 2026, Subex secured a five-year Partner Ecosystem Management contract valued at $5.0 million (approximately ₹47 crore) with a Tier-1 APAC mobile network operator. This was followed by another win on October 30, 2026, involving an AI Agents contract worth $0.72 million with a leading African telecom operator.

These developments align with the company's earlier guidance of double-digit top-line growth for FY27, as it transitions from a turnaround phase to a growth-oriented business model focused on high-stakes AI decision-making tools.

Management on Strategic Rebuilding

Three years of disciplined rebuilding have laid the foundation for this moment: 7.7% sequential growth, 24.2% YoY, and a 20.8% EBITDA margin. But our ambition extends well beyond these results. AI is fundamentally rewriting the rules of our industry.

What to watch next

• Execution milestones for the 5-year APAC Partner Ecosystem Management contract
• Earnings call scheduled for November 4, 2026, to discuss long-term AI strategy
• Implementation progress of the AI Agents contract for the African telecom operator
• Quarterly updates on the realization of guided double-digit top-line growth for FY27

“A new control point is forming where high-stakes decisions, economic value, and integrity converge. This is where we are positioning Subex, not merely to participate, but because this is where we believe we have the right to win.”

Subex · financial snapshot

Share price	₹16.27
Market capitalisation	₹914.38 Cr
Revenue (annual)	₹279.06 Cr
Net profit (annual)	₹28.53 Cr
Revenue (latest quarter)	₹79.45 Cr+8.90% vs previous quarter
Net profit (latest quarter)	₹14.22 Cr+43.20% vs previous quarter
P/E (TTM)	30.54×Sector 23.49×
Promoter holding	0%0.00% QoQ
FII holding	1.08%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.