Route Mobile (ROUTE) Q1 26/27 earnings summary

Executive summary

• Achieved Q1 FY27 revenue growth of 9.6% year-on-year and 1.8% sequentially, with 45.8 bn billable transactions and strong new product portfolio performance, especially in RCS, WhatsApp, and IP-based messaging.

• Margin softness attributed to transient customer account disruptions and a security incident at the Colombian subsidiary, with recovery expected as issues resolve.

• Strategic acquisition of Heltar, an AI-driven omnichannel engagement platform, to accelerate non-SMS revenue and enhance product capabilities.

• Board declared an interim dividend of ₹4 per share for FY 2026-27, reflecting confidence in ongoing performance.

• Strong external validation through industry awards, partnerships, and recognition in Gartner's Magic Quadrant for CPaaS.

Financial highlights

• Q1 FY27 consolidated revenue from operations: ₹1,151.51 crores (INR 11,515 mn), up from ₹1,050.83 crores in Q1 FY26.

• Gross profit: ₹2,639 mn, up 6.8% year-on-year but down 8.9% sequentially; gross margin at 20.9%.

• Adjusted EBITDA: ₹1,089 mn, down 5.6% year-on-year and 18.9% sequentially; margin at 9.5%.

• Adjusted PAT: ₹686 mn, up 16.6% year-on-year, down 14.1% sequentially; includes a forex gain of ₹6 mn.

• Consolidated net profit for Q1 FY27: ₹68.55 crores; EPS at ₹9.94.

Outlook and guidance

• Margin recovery expected as customer-specific disruptions are resolved and routing optimizations are implemented.

• Expectation of 10%-15% volume growth in the next quarters as seasonal demand picks up.

• Continued focus on expanding global RCS connectivity and product portfolio to drive future growth.

• Non-SMS business expected to be margin accretive as it scales, especially with Heltar integration.

• Management maintains medium-term guidance, with margin recovery anticipated but timing dependent on resolution of transient issues.