Subex is currently in a turnaround-to-growth phase,

Subex is currently in a turnaround-to-growth phase, with Q1 FY27 showing a meaningful improvement. Revenue from operations increased 19.6% YoY to ₹79.45 crore, while reported PAT rose 10.8% to ₹14.22 crore. More importantly, reported EBITDA margin improved sharply to 18.88% from 5.92% a year earlier, indicating substantial operating improvement. The company is now shifting its focus from turnaround and cost optimisation toward sustainable double-digit revenue growth, with management highlighting a qualified pipeline of around 3–4 times the annual order-intake target. Around 70% of revenue is recurring, which provides some visibility to future earnings. Recent order wins are another positive. Subex secured a three-year contract with a major European open-access fibre operator for its Partner Ecosystem Management solution, delivered as a hosted and managed service. The company has also secured contracts with telecom operators in Africa, Europe and the Middle East, supporting its transition toward recurring managed-service revenue. The AI-driven HyperSense platform is an important longer-term growth opportunity, particularly as telecom operators increasingly use AI for fraud management, revenue assurance and network analytics. However, investors should distinguish between revenue growth and sustainable cash earnings because Q1 reported PAT was affected by exceptional items/impairment adjustments