Subex Ltd

- Subex has about INR 50 crores of cash on the balance sheet after setting aside working capital for a six-month runway. - The company plans to generate more cash through the year. - There is an active discussion with the board about pursuing potential tuck-in acquisitions in the current year. - No immediate plans to increase or dilute investment in OnGrid as the investment is performing well. - Preference is to reinvest capital back into Subex’s own portfolio rather than external investments, showing higher confidence in internal growth opportunities. - The company aims to use its strengthened balance sheet to invest with conviction and pursue growth opportunities from a position of strength, moving away from defensive management.

- No immediate need for raising funds through debt or equity. - The company currently has sufficient cash on the balance sheet (around INR 50 crores after reserving for working capital). - They are generating cash through the year and are focusing on internal investments. - There is openness to potential tuck-in acquisitions this year, discussions active with the board. - No plans to raise money from OnGrid investment as it is doing well. - Overall, the focus is on reinvesting in their own portfolio rather than seeking external capital.

- Subex is entering FY27 with a strong backlog and robust pipeline, expecting revenue growth as implementation cycles for contracts won last year complete, leading to increased subscription revenues. - Management is bullish on FY27, expecting to beat prior performance benchmarks and achieve accelerated growth. - Revenue showed sequential growth of around 3% in Q4FY26, with expectations of faster revenue growth in upcoming quarters as order conversions improve. - The company targets reaching INR 100 crores revenue per quarter in the near future. - Growth engines include traditional telecom services, new AI-powered products replacing managed services teams, addressing new fraud vectors, and expanding into telco adjacencies like mobile money fraud and IoT. - Subex aims for at least 10% growth driven by these diversified growth levers and expanding markets. - Despite geopolitical risks, especially in the Gulf region, Subex is mitigating impact by offshoring delivery and focusing on diverse geographies such as APAC, Europe, Americas, and Africa.

- Subex's CEO Nisha Dutt emphasized FY27 as the year focused on growth, expressing a bullish outlook based on strong order backlog and pipeline. - Revenue growth is expected as contracts won last year move through implementation to subscription revenue, leading to upticks in future quarters. - Operational discipline over three years has built a platform to accelerate growth with consistency in positive EBITDA and PAT. - Margins might improve due to cost optimization, utilizing AI to reduce engineering and operational costs, benefiting EBITDA. - The company aims to achieve quarterly revenue of INR 100 crores, signaling targets for significant growth. - Management is cautiously optimistic but does not provide forward-looking numeric guidance due to competitive and contractual confidentiality. - Overall, the foundation is set for accelerating profits and EPS growth, driven by new products, geographic expansion, and leveraging AI-based efficiencies.

- The company entered the year with a strong backlog and a strong pipeline of orders. - Order Intake (OIN) last year was 35% higher than any other year, indicating strong momentum. - Most contracts won last year are multi-year contracts, providing annuity revenue over future years. - The implementation phase of many contracts started last year is underway; subscription revenues will increase as implementations conclude. - Typical bill sizes range from INR 1 to 1.5 crore per quarter; deals above INR 2-3 crore are considered "blockbuster" and infrequent. - Some delays and contracting issues are seen, especially in the Middle East, due to geopolitical factors, but overall demand remains strong. - The company expects revenue to start growing as implementations complete during the year, improving order conversion progressively.