Any current/future new fundraising through debt or equity?

No explicit mention of any current or planned fundraising through equity or debt during the Q1 FY26 earnings call. Management discussed plans for investor outreach including an Investor Day or roadshow targeted around Q3 FY26 to possibly engage investors better. They are focusing on structured investor relations by planning to appoint an IR firm for better communication, not directly related to fundraising. No concrete commitments or timelines given regarding raising new capital. The company is emphasizing growth through operational improvements and strategic investments (e.g., Subex Middle-Ea

Future growth expectations in sales/revenue/volumes?

Management acknowledges top-line growth is currently a challenge but is actively working to get growth back on track and improve quarters going forward. (Page 36) Focus on deploying solutions like FraudZap, with potential gain-share agreements to incentivize adoption and create live testing opportunities at customers' sites, aiming to expand sales. (Page 36) There are significant deals in the pipeline, including some big deals expected to be announced after closure, indicating future revenue growth potential. (Page 33) The company hopes to grow revenues by expanding adjacencies such as telco w

Future growth expectations in earnings/operating earnings/profits/EPS?

Management is focused on getting growth back on track after addressing challenges in top line (Page 36). Bottom-line profitability has been delivered consistently, with diligence to continue maintaining it (Page 36). There is optimism about growth returning via new product lines and expansions in adjacent sectors like telco fintech, OTT, video on demand, and ecommerce (Pages 26, 29). Some large deals in the pipeline expected to close soon, potentially boosting revenue significantly (Page 33). R&D spend remains robust at approximately 15% annually, supporting innovation and future growth (Page

Current/ Expected Orderbook/ Pending Orders?

The company mentions having about five or six deals currently in their pipeline (Page 34). There are some significant deals expected to close soon, with announcements planned once finalized (Page 33). A few deals spilled over from Q1 to Q2, currently in late stages such as contractual negotiations or awaiting purchase orders, with no expected threat to closure (Page 27). The management notes a developing momentum in deal closures, though some procedural delays remain (Page 27). Discussions indicate cautious optimism regarding order inflow and achieving revenue targets, with efforts ongoing to

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Subex LtdQ2 FY25IT - Software

Subex Ltd Q2 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹10.5P/E: 18.4Market Cap: ₹590 CrSector: IT - Software

Management growth scorecard

Revenue

Category 4

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 4

→Management acknowledges top-line growth is currently a challenge but is actively working to get growth back on track and improve quarters going forward. (Page 36)
→Focus on deploying solutions like FraudZap, with potential gain-share agreements to incentivize adoption and create live testing opportunities at customers' sites, aiming to expand sales. (Page 36)
→There are significant deals in the pipeline, including some big deals expected to be announced after closure, indicating future revenue growth potential. (Page 33)
→The company hopes to grow revenues by expanding adjacencies such as telco wallets, fintech, ecommerce device services, and OTT/video segments, which are already part of the revenue mix. (Page 29)
→While Q1 and H1 are seasonally lower, management anticipates stronger business in H2 and aims to reach INR 100 crore per quarter revenue goal, though no forward-looking guidance is officially given. (Pages 28-29)
→Overall, fundamentals are fixed, and management is optimistic about moving the needle on top-line growth. (Page 28)

Margin guidance

Category 3

→Management is focused on getting growth back on track after addressing challenges in top line (Page 36).
→Bottom-line profitability has been delivered consistently, with diligence to continue maintaining it (Page 36).
→There is optimism about growth returning via new product lines and expansions in adjacent sectors like telco fintech, OTT, video on demand, and ecommerce (Pages 26, 29).
→Some large deals in the pipeline expected to close soon, potentially boosting revenue significantly (Page 33).
→R&D spend remains robust at approximately 15% annually, supporting innovation and future growth (Page 33).
→Company aims to increase quarterly revenue to INR 100 crore per quarter as a personal aspiration of management but no firm timeline given (Page 27).
→Growth momentum expected to pick up in H2 FY26, with Q1 and H1 typically being slower (Page 27, 36).
→Management’s intent to execute gain-share and value-share agreements to stimulate sales and client adoption (Pages 34-35).

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Fundraise plans

→No explicit mention of any current or planned fundraising through equity or debt during the Q1 FY26 earnings call.
→Management discussed plans for investor outreach including an Investor Day or roadshow targeted around Q3 FY26 to possibly engage investors better.
→They are focusing on structured investor relations by planning to appoint an IR firm for better communication, not directly related to fundraising.
→No concrete commitments or timelines given regarding raising new capital.
→The company is emphasizing growth through operational improvements and strategic investments (e.g., Subex Middle-East) rather than immediate fundraising.

Order book

→The company mentions having about five or six deals currently in their pipeline (Page 34).
→There are some significant deals expected to close soon, with announcements planned once finalized (Page 33).
→A few deals spilled over from Q1 to Q2, currently in late stages such as contractual negotiations or awaiting purchase orders, with no expected threat to closure (Page 27).
→The management notes a developing momentum in deal closures, though some procedural delays remain (Page 27).
→Discussions indicate cautious optimism regarding order inflow and achieving revenue targets, with efforts ongoing to ramp up top-line growth (Pages 27 and 36).

Capex plans

Yes

- Subex Limited is investing in setting up an innovation lab specifically for fraud, likely to be located outside India, focused on R&D for new and upcoming frauds (Page 33). - The company continues to invest in PrivaSapien, an area focused on privacy and responsible AI, viewing it as a growing and important space (Page 20). - Capitalization of Subex Middle-East indicates an investment aimed at growth plans in that region (Page 28). - No specific new capital expenditure (capex) amounts or timelines were detailed for future strategic investments. - Plans for investor outreach, including an Investor Day or roadshows, are on the radar but not directly related to capex (Page 26-27). Overall, current investments are focused on innovation labs, strategic geographic expansion, and growth in adjacent technology sectors.

How does Subex Ltd rank vs peers in IT - Software?

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1Subex Ltd

Rev 4Mar 3

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