Route Mobile (ROUTE) Q1 25/26 earnings summary

Executive summary

• Leadership transition with the return of the previous CEO and new key appointments, focusing on core strengths and driving the next growth phase.

• Strategic emphasis on profitability over volume, with improved gross and EBITDA margins despite revenue headwinds.

• Board approved unaudited financial results for Q1 FY26 and recommended an interim dividend of ₹3 per share.

• Expansion of global footprint and product innovation, particularly in non-ecommerce portfolios like WhatsApp, RCS, Voice, and AI-driven firewall solutions.

• Ongoing efforts to diversify revenue and enhance cross-sell opportunities within the Proximus Group.

Financial highlights

• Q1 FY26 consolidated revenue from operations was ₹1,050.83 crore (₹10,508 million), down 4.8% year-over-year due to SMS market volume decline.

• Gross profit for Q1 was ₹2,251 million, with a margin of 21.4%, up sequentially from 19.3% but down 0.3% year-over-year.

• Adjusted EBITDA for Q1 was ₹1,154 million, down 16.3% year-over-year; adjusted EBITDA margin improved to 11% from 10.2% last quarter.

• Profit after tax was ₹835 million, down 10.3% year-over-year; consolidated Q1 FY26 net profit at ₹58.78 crore.

• Processed 39.3 billion digital transactions, flat year-over-year and slightly up sequentially.

Outlook and guidance

• No formal guidance provided, but management is focused on growth, cost optimization, and leveraging synergies with Proximus.

• Expectation of revenue and margin improvement in coming quarters, driven by new product lines and operator partnerships.

• Emphasis on expanding healthcare access and digital engagement solutions.