EL7.AI
StocksMedium•28 October 2026•
4 min read

Route Mobile Reports Revenue of 1,179.67 Crore Rupees in Fiscal Second Quarter

Key Facts

1Consolidated revenue from operations was 1,179.67 crore rupees in Q2 FY27, compared with 1,119.42 crore in Q2 FY26.
2Reported profit after tax was 82.55 crore rupees, versus a loss of 18.83 crore a year earlier, and earnings per share were 12.63 rupees.
3Revenue from new products reached 128 crore rupees, up 36.7% year over year and 35.8% quarter on quarter.
4Gross margin was 22.4%, compared with 20.9% in the previous quarter and 22.1% a year earlier.
5Management is targeting an EBITDA margin of about 12% in the second half of FY27.

Route Mobile said consolidated revenue from operations reached 1,179.67 crore rupees in the second quarter of fiscal 2026-27, ended September 30, 2026, compared with 1,119.42 crore in the same period a year earlier. In its results statement, the company said revenue was "in line with our guidance," placing the quarter's performance within its stated operating expectations. Reported profit after tax was 82.55 crore rupees, versus a loss of 18.83 crore a year earlier, while basic and diluted earnings per share were 12.63 rupees. The year-over-year comparison shows revenue growth and a shift from a reported loss to profit. Adjusted profitability figures, however, present a weaker year-over-year picture, despite improvement from the previous quarter.

Quarter-on-quarter, revenue from operations rose from 1,151.51 crore rupees in the first quarter of FY27 to 1,179.67 crore in the second quarter, while profit before tax increased from 91.47 crore to 100.93 crore. However, profit before tax and exceptional items fell from 137.87 crore in the second quarter of the previous year to 100.93 crore in the current quarter, with a margin of 8.56%. Adjusted profit after tax was 825 million rupees, down 17.8% year over year but up 20.4% from the previous quarter. Adjusted EBITDA was 1,184 million rupees, up 8.7% quarter on quarter, with a 10% margin, an improvement of 50 basis points from the previous quarter. The report therefore combines quarter-on-quarter improvement in some profitability measures with year-over-year declines in others.

Gross margin improved to 22.4% in the second quarter, from 20.9% in the previous quarter and 22.1% a year earlier. Management attributed the improvement mainly to a higher contribution from new product traffic and higher-margin existing customers. Revenue from the new product portfolio, which includes RCS, WhatsApp and internet protocol-based messaging solutions, was 128 crore rupees. This revenue grew 36.7% year over year and 35.8% quarter on quarter, taking its share above 10% of total revenue, compared with about 8% a year earlier. Chief Executive Tushar Agnihotri said the company was focused on converting opportunities in these products into revenue, while Chairman Sekin Arikan said the strategy included expanding higher-value solutions and strengthening the core business.

In the first half of fiscal 2027, revenue rose 7.4% year over year to 2,331 crore rupees. The company processed 47.6 billion billable transactions during the quarter and 93.4 billion in the first half, an increase of about 11% from the corresponding half. Net revenue retention was 105% in the first half. The top five customers' share of revenue also declined to 30%, compared with 33% a year earlier, according to the earnings call transcript. These indicators point to broader activity alongside a slight decline in revenue concentration among the largest customers. Meanwhile, management said international long-distance messaging continued to face growth challenges, with weakness at some aggregators partly offset by direct enterprise volumes.

Management said higher operating costs compared with the previous quarter were mainly linked to the one-off effects of a security incident at Masivian and the timing of a performance bonus provision. It said these costs would not recur in coming periods and that first-half expenses included one-time items. The company reaffirmed its fiscal 2027 revenue growth range at the midpoint to high end of the single digits, while targeting a return of adjusted EBITDA margin to about 12%. Management linked that goal to seasonal improvement, conversion of higher-margin opportunities and cost optimization. The chief executive also said the target for the second half of FY27 was about 12%, making the margin trajectory dependent on executing these factors over the rest of the fiscal year.

Management expects e-commerce and retail activity to support a seasonal improvement in volumes in the October-December quarter, with marketing campaigns potentially distributing activity across SMS, WhatsApp and RCS. It said weakness in some international messaging volumes had prompted it to take steps to engage enterprises directly. New prices for RCS services, which had been notified to telecom operators, took effect on September 1, and marketing message prices rose to nearly twice their previous levels, while WhatsApp prices saw no major change. Management said, however, that the long-term impact of the pricing changes remained unclear and that the distribution of volumes across messaging channels was difficult to determine. As part of its expansion, Route Mobile completed the acquisition of Heltar Technologies' AI business on July 29, 2026, for 33.7 crore rupees, of which 23.9 crore was paid at closing; the remaining 9.8 crore is due 18 months after closing.