Route Mobile (ROUTE) Q2 26/27 earnings summary

Executive summary

• Q2 revenue was ₹1,179.67 crore, up 5.4% YoY; H1 revenue reached ₹2,331.18 crore, up 7.4%.

• Growth increasingly reflects RCS, WhatsApp and other IP messaging products, alongside expansion into AI-enabled customer engagement and operator offerings such as firewalls and network APIs.

• The board declared a second interim dividend of ₹4 per share and retained ₹65 crore of unutilised IPO proceeds for the Mumbai office purchase.

Financial highlights

• Q2 revenue from operations was ₹1,179.67 crore, up 5.4% YoY and 2.4% QoQ; H1 revenue was ₹2,331.18 crore, up 7.4% YoY.

• Q2 gross profit was ₹264 crore, up 6.8% YoY and 9.8% QoQ; gross margin was 22.4%, versus 22.1% in Q2 FY25-26 and 20.9% in Q1 FY26-27.

• Q2 adjusted EBITDA was ₹1,184.2 million, down 11.1% YoY and up 8.7% QoQ; adjusted EBITDA margin was 10.0%.

• Q2 adjusted PAT was ₹825.5 million, down 17.8% YoY and up 20.4% QoQ; adjusted PAT margin was 7.0%.

• Consolidated Q2 net profit was ₹82.55 crore versus a loss of ₹18.83 crore YoY; H1 net profit was ₹151.10 crore versus ₹39.95 crore.

Outlook and guidance

• FY revenue growth guidance was reaffirmed at the mid-range of the prior mid-to-high single-digit outlook; adjusted EBITDA margin target is ~12%, which management said would support ~6% YoY EBITDA growth.

• OND volumes are expected to improve with seasonal e-commerce and retail communications, though management said it cannot make a reliable longer-term volume forecast.

• Priorities include converting high-margin firewall and new-product opportunities, scaling Heltar across markets and maintaining cost discipline.

• Heltar’s roadmap includes Voice AI, analytics and a customer data layer; cross-selling targets enterprise accounts and expansion in the Middle East and Latin America.