Route Mobile reports modest revenue growth, swings to loss amid industry headwinds

Route Mobile Limited, a cloud communications platform that serves enterprises and mobile network operators, reported a sharp decline in quarterly profit even as revenue inched higher, highlighting the pressures facing digital messaging providers navigating shifting carrier dynamics and pricing competition.

The company posted revenue from operations of ₹1,119.42 crore for the quarter ended Sept. 30, up slightly from ₹1,113.41 crore a year earlier. But profit after tax fell to a loss of ₹18.83 crore from a profit of ₹107.03 crore in the same period last year.

Profit before tax and exceptional items stood at ₹137.87 crore, up from ₹131.06 crore in the year-earlier quarter. Including exceptional items, profit before tax fell steeply to ₹2 crore from ₹137.34 crore a year ago.

Sequentially, Route Mobile’s revenue rose from ₹1,050.83 crore in the previous quarter, while profit before tax and exceptional items nearly doubled from ₹76.57 crore. However, the bottom line turned negative, with a loss of ₹18.83 crore compared with a profit of ₹58.78 crore in the June quarter. The company’s EBITDA margin for the quarter stood at 12.14 percent.

Mark James Reid, chairman of Route Mobile, said the company had delivered “strong operating results” despite near-term challenges, crediting its diversified business model and focus on innovation. Rajdipkumar Gupta, managing director and chief executive, added that teams had executed well across operations and customer engagement, emphasizing agility in response to changing market dynamics.

Founded in 2004 and headquartered in Mumbai, Route Mobile provides messaging, voice, and email solutions to social media firms, financial institutions, e-commerce companies, and travel aggregators. The company became part of the Belgium-based Proximus Group, which also owns Telesign and BICS, following an acquisition aimed at expanding its global communications and digital identity business.