Route Mobile Reports H1 Revenue Rise to ₹2,331 Crore, but Margin Pressures Pull Stock Down

Mumbai-based cloud communications platform Route Mobile Limited has announced its financial results for the first half of fiscal year 2026-27, reporting a consolidated revenue of ₹23,312 million, marking a 7.4 per cent increase compared to the same period last year. Despite the top-line growth, profitability pressures impacted market performance, sending the company's shares down 4.21 per cent to close at ₹429.40 on the National Stock Exchange (NSE) on Wednesday. The stock is currently trading near its 52-week low of ₹407.10, which was touched just two days prior.

Alongside the financial results, the board declared an interim dividend of ₹4 per share. The company's earnings per share (EPS) for H1 FY26-27 stood at ₹22.57, with cash and cash equivalents on its books recorded at ₹13,556 million as of September 30, 2026. The total market capitalisation of the company stood at approximately ₹2,706 crore at Wednesday’s session price. Over the past year, the stock has lost over 41 per cent and nearly 39 per cent year-to-date, underperforming the broader Nifty Total Market index.

Profitability indicators, however, saw a downward trend during the half-year period. Adjusted EBITDA fell 8.6 per cent year-on-year to ₹2,274 million, leading to a margin compression to 9.8 per cent from 11.5 per cent a year ago. Similarly, adjusted Profit After Tax (PAT) slipped by 5 per cent to ₹1,511 million. Route Mobile attributed these margin declines to higher salary costs alongside increased expenditure on legal and professional fees.

Despite the H1 headwinds, sequential performance in the second quarter of FY26-27 showed recovery. Revenue for Q2 rose 2.4 per cent quarter-on-quarter to ₹11,797 million, while adjusted EBITDA climbed 8.7 per cent. The gross profit margin recovered to 22.4 per cent in Q2, up from 20.9 per cent in Q1. This recovery was supported by an enhanced routing strategy and growing revenue from newer products, which surged 36.7 per cent year-on-year to ₹1,284 million during the quarter.

In terms of corporate development and product expansion, Route Mobile completed the acquisition of Heltar Technologies’ AI-driven customer engagement business in July 2026 for ₹33.7 crore. This acquisition integrates no-code conversational AI capabilities into the company's existing CPaaS stack. Additionally, the firm launched a Salesforce-native messaging application in August 2026 as part of its ongoing business development strategy.

"Route Mobile's performance highlights a common challenge faced by growth-stage tech enterprises: balancing top-line expansion with cost management. While revenue and product segments are scaling positively, rising personnel and professional expenses have impacted EBITDA margins, directly reflecting on investor sentiment and stock performance. Going forward, sustaining sequential recovery will depend heavily on how effectively the company integrates its recent acquisitions, such as Heltar Technologies, and manages operational overheads." — Dr. Shishir Gupta, Founder & CEO, StartupLanes