Highlights

• Route Mobile enabled a major South Asian eCommerce platform to process over 170 million emails within 24 hours.
• International expansion and adoption of new IP-based messaging and email solutions contributed to 13% quarter-on-quarter growth in new-generation product revenue.
• Adjusted PAT rose 70.7% quarter-on-quarter to ₹176 million, driven by gross profit growth and Forex gains, despite exceptional write-offs.

Route Mobile Limited (NSE:ROUTE), a leading global cloud communications provider, announced its Q2 FY25-26 performance, highlighting continued growth in enterprise adoption of its messaging and email solutions, international expansion, and improvements in adjusted profitability. Revenue growth was supported by new-generation product uptake, while sequential profit gains were aided by Forex gains and operational efficiencies.

Revenue Performance

Route Mobile reported revenue growth of 0.5% year-on-year and 6.5% quarter-on-quarter in Q2 FY25-26. Growth drivers included expansion of the international and ILDO (International Long Distance Operator) business, domestic volume increases, and optimized routing synergies, which offset partially lower average realizations.

Revenue from new-generation products, including IP-based messaging and enterprise email solutions, rose 13% quarter-on-quarter, significantly outpacing the overall revenue growth of 6.5%. The uptake of these solutions by enterprises underlined demand for scalable, next-generation communication tools across geographies.

Key enterprise wins in the quarter included enabling one of South Asia’s leading eCommerce companies to process over 170 million email messages within 24 hours, partnering with Tech Mahindra to onboard a leading global logistics provider for A2P SMS services, and providing premium RCS messaging capabilities to one of the world’s largest hyperscalers across India.

Gross Profit and Margins

Gross profit for Q2 FY25-26 rose 5.2% year-on-year and 9.8% quarter-on-quarter, reaching a margin of 22.1%, up from 21.4% in Q1 FY25-26.

Adjusted EBITDA and PAT

Adjusted EBITDA increased 15.5% quarter-on-quarter and 0.7% year-on-year, flowing from the rise in gross profit. Operating costs, adjusted for non-core items, grew 10% year-on-year, largely due to salary increments and certain trade receivables written off. A one-time severance expense of ₹18.9 million was incurred in Q2 FY25-26.

Adjusted PAT improved significantly on a sequential basis, rising 70.7% quarter-on-quarter, though slightly down 0.4% year-on-year. This included a Forex gain of ₹176 million in Q2 FY25-26 compared to a loss of ₹247 million in Q1 FY25-26. Exceptional items, such as advances written off to two vendors, were excluded from adjusted PAT, highlighting underlying operational performance improvements.

ROUTE shares were trading at ₹734.00 per share at the time of writing on 4 November 2025.