Route Mobile Limited reported its Q3 FY26 results, showing a clear shift towards higher-margin business even though overall revenue declined. The company’s earnings call on February 10, 2026, highlighted that the performance was shaped by a deliberate strategy to move away from low-margin volume-driven segments and focus on more profitable offerings in the CPaaS space.
For Q3 FY26, Route Mobile’s revenue from operations fell 6.5% year-on-year to ₹1,071 million, compared with ₹1,145 million in Q3 FY25. The decline was mainly due to lower volumes in certain international long-distance (ILD) segments, which are typically lower margin.
However, profitability improved sharply. Gross profit rose 8.6% to ₹271.2 million, while gross margin expanded to 24.5%, up from 21.1% last year. Adjusted EBITDA increased slightly to ₹142.9 million, with EBITDA margin improving to 12.9%. Profit after tax (PAT) jumped 20% to ₹102.6 million, showing better cost control and improved business mix.
Management indicated that the revenue decline reflects a strategic transformation rather than business weakness. Route Mobile is moving away from low-margin ILD volumes and focusing more on higher-margin domestic and enterprise-led growth.
The strategy appears to be working, as the company delivered one of its strongest quarterly margin performances. Growth in India, along with traction in regions such as UAE and Colombia, helped support profitability despite the revenue pressure.
A key update from the call was a leadership transition. Tushar Agnihotri has taken over as CEO, while Rajdipkumar Gupta remains Managing Director, focusing on strategic direction and synergies with Proximus Global.
Agnihotri has been with Route Mobile for around 9.5 years and has played a major role in building the company’s domestic business and expanding into markets such as Bangladesh, Sri Lanka, and Indonesia.
During the quarter, Route Mobile executed several enterprise deployments, including WhatsApp-based retail logistics solutions, an education chatbot for admissions, and digital ticketing systems for a state-owned waterways company. It also progressed firewall deployment testing with Claro in Latin America.
The company reported 14.5% year-on-year growth in revenue from new products over the nine months ended December 31, 2025. These include omni-channel solutions, RCS messaging, and WhatsApp Business API integration, which typically offer stronger pricing and margins.
Read more: Bank Employees’ DA Hiked To 25% For Feb–Apr 2026: Check Details.
Route Mobile’s Q3 FY26 performance reflected a transition phase, where revenue fell but margins improved meaningfully. With a sharper focus on premium enterprise products, telecom APIs, and operator solutions, the company appears positioned for more stable and profitable growth in the coming quarters.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Feb 17, 2026, 1:06 PM IST
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
EN