Any current/future capex/capital investment/strategic investment?

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 sh

Any current/future new fundraising through debt or equity?

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.

Future growth expectations in sales/revenue/volumes?

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

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

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 cr

Current/ Expected Orderbook/ Pending Orders?

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, especi

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Subex LtdQ1 FY26IT - Software

Subex Ltd Q1 FY26 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 3

Margin

Category 3

Fundraise

Yes

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→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.

Margin guidance

Category 3

→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.

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Fundraise plans

Yes

→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.

Order book

Yes

→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.

Capex plans

Yes

→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.

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