Subex Limited, a leading provider of artificial intelligence solutions for the telecommunications sector, has unveiled its financial performance for the second quarter and the first half of the fiscal year 2026, concluding on September 30, 2025. The company's report card presents a contrasting picture, highlighting growth in top-line revenue alongside a significant contraction in bottom-line profitability.
Quarterly Performance: A Tale of Two Metrics
According to the official exchange filing, Subex posted a consolidated revenue of ₹6,891 lakhs for the quarter ended September 30, 2025. This figure marks a modest year-on-year increase of 3.78%, climbing from the ₹6,640 lakhs recorded in the same quarter of the previous fiscal year.
However, the company's profit after tax (PAT) told a different story. Subex witnessed a steep decline of 78% in its PAT, which settled at ₹286 lakhs. This is a substantial drop compared to the profit of ₹1,281 lakhs reported in the corresponding quarter last year. The financial disclosure points towards increased operational expenses and a jump in impairment allowances as the primary reasons for this profit squeeze. Impairment allowances alone rose to ₹102 lakhs from ₹35 lakhs in the prior quarter.
Operational Efficiency Shines Through in Normalized EBITDA
Beyond the headline revenue and profit numbers, a key metric indicating core operational health showed significant improvement. Subex reported its normalized EBITDA at ₹730 lakhs for Q2 FY26. This represents a strong recovery from the ₹428 lakhs recorded in the previous quarter ended June 30, 2025.
Normalized EBITDA, which excludes exceptional items and impairment costs, offers a clearer view of the company's underlying business performance. The notable increase suggests that Subex has implemented better cost management and operational efficiency measures during the quarter, even as it navigates other financial headwinds.
Half-Yearly Review: A Return to Profitability
The filing also detailed the company's performance for the entire six-month period (H1) ending September 30, 2025. For H1 FY26, Subex achieved a total revenue of ₹13,531 lakhs. While this is slightly lower than the ₹14,232 lakhs reported in the same period last year, the company managed a remarkable turnaround in its overall profitability.
Subex reported a profit after tax of ₹1,567 lakhs for H1 FY26. This is a significant reversal from the loss of ₹1,059 lakhs it had incurred during the first half of the previous fiscal year.
The management of Subex has attributed these mixed results to ongoing strategic investments and internal corporate changes. A key development during this period was an investment of ₹3,536 lakhs by its wholly-owned subsidiary, Subex Assurance LLP, into Subex Middle East (FZE), UAE. This capital infusion is intended to support the working capital requirements and bolster the business operations of the Middle Eastern entity.
