New Products Revenue (FY26)
₹3,500M+
+11% YoY
RCS, WhatsApp, and AI-enabled products; 43% CAGR since FY22.
ROUTEMOBILE
Other
15 May 2026
Route Mobile Ltd — Q4 FY26
Route Mobile reported Q4 FY26 revenue of ₹1,130.9 Cr, down 3.8% YoY, but gross profit grew 16.6% to ₹263.9 Cr with margin expanding to 23.3% (up 400 bps).
✓ Verified against BSE filing
2-Min Summary
✦ AI-Generated from Full Transcript
Route Mobile reported Q4 FY26 revenue of ₹1,130.9 Cr, down 3.8% YoY, but gross profit grew 16.6% to ₹263.9 Cr with margin expanding to 23.3% (up 400 bps). Full-year revenue declined 3.7% to ₹4,408.2 Cr, while PAT rose 6.7% to ₹376.1 Cr. The revenue decline reflects structural A2P SMS headwinds and loss of high-value IL traffic, partially offset by domestic growth and higher-margin mix. New products (RCS, WhatsApp, AI) grew at 43% CAGR over four years but remain only 8% of revenue. Management guided mid-to-high single-digit revenue growth for FY27 with ~12% EBITDA margin, and raised dividend to ₹16.5/share. Key risks include sustained pricing compression in SMS/RCS and slower-than-expected new product ramp-up.
Key Numbers
Gross Profit Margin (FY26)
22.9%
+210 bps YoY
First time annual gross profit crossed ₹1,000 Cr; driven by exit of low-margin business.
Transactions Processed (Q4)
45.1B
N/A
Stable volumes despite revenue decline due to mix shift to lower-priced domestic traffic.
Enterprise Clients
3,100+
N/A
Majority single-channel; wallet share opportunity with no acquisition cost.
Management Guidance
FY27 Revenue Growth: Mid-to-High Single Digit
Revenue expected to grow mid-to-high single digit YoY, driven by new product traction, geographic expansion, and cross-sell within Proximus Global.
Management guidance revenueFY27 EBITDA Margin: ~12%
EBITDA margin target of approximately 12%, supported by cost control and mix shift to higher-margin products.
Management guidance marginsDividend Increase to ₹16.5 per Share
Regular dividend raised 50% from ₹11 to ₹16.5 per share, payable quarterly, reflecting higher payout of free cash flow.
Management guidance otherKey Risks
Sustained Pricing Compression in SMS and RCS
Revenue per transaction fell 14% YoY; RCS pricing may commoditize further if operators do not set floor pricing, pressuring blended realizations.
high · analyst_questionSlow Ramp of New Products
New products (RCS, WhatsApp, AI) contribute only 8% of revenue; growth moderated to 11% YoY, insufficient to offset legacy SMS decline in near term.
medium · data_observationCapital Allocation and Cash Pile
Cash balance of ~₹1,400 Cr (~40% of market cap) with no large M&A announced; risk of persistent low return on excess cash if deals don't materialize.
medium · analyst_questionNotable Quotes
The reset is largely behind us and the business has emerged from it structurally healthier.
We have spent the past 12 months understanding each of these precisely. The strategy I'm about to walk through is a direct response to every one of them.
We are not looking to make large transformational acquisitions. We're looking for targeted capability transactions where the technology accelerates the road map and the customer base is complimentary.
Frequently Asked Questions
What was Route Mobile's revenue in Q4 FY26?
Route Mobile reported revenue of ₹1,131 Cr in Q4 FY26, representing a -3.7% change compared to the same quarter last year.
What guidance did Route Mobile management give for FY27?
FY27 Revenue Growth: Mid-to-High Single Digit: Revenue expected to grow mid-to-high single digit YoY, driven by new product traction, geographic expansion, and cross-sell within Proximus Global. FY27 EBITDA Margin: ~12%: EBITDA margin target of approximately 12%, supported by cost control and mix shift to higher-margin products. Dividend Increase to ₹16.5 per Share: Regular dividend raised 50% from ₹11 to ₹16.5 per share, payable quarterly, reflecting higher payout of free cash flow.
What are the key risks for Route Mobile in FY27?
Key risks include Sustained Pricing Compression in SMS and RCS — Revenue per transaction fell 14% YoY; RCS pricing may commoditize further if operators do not set floor pricing, pressuring blended realizations.; Slow Ramp of New Products — New products (RCS, WhatsApp, AI) contribute only 8% of revenue; growth moderated to 11% YoY, insufficient to offset legacy SMS decline in near term.; Capital Allocation and Cash Pile — Cash balance of ~₹1,400 Cr (~40% of market cap) with no large M&A announced; risk of persistent low return on excess cash if deals don't materialize..
Did Route Mobile meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Route Mobile Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary verified against official BSE/NSE filings.