Subex reports 18.88% operating margin as PEM refocus gains traction
Other income of Rs 4.69 cr supported Rs 16.46 cr of pre-tax profit, while management flagged a European BAFM win and wider AI work.
Filed 05 Aug 2026, 17:42 IST · after market close · SUBEXLTD (SUBEXLTD)
Key takeaways
- Subex reported a consolidated Q1FY27 operating margin of 18.88% and operating profit of Rs 15.00 cr.
- Other income of Rs 4.69 cr contributed to profit before tax of Rs 16.46 cr, so reported earnings included a non-operating contribution.
- EPS was Rs 0.26, while management said its PEM refocus had started delivering results and highlighted a European BAFM deal.
18.88% margin sets the Q1FY27 operating base
Subex's consolidated Q1FY27 operating margin was 18.88%, generating Rs 15.00 cr of operating profit on revenue of Rs 79.45 cr. Net profit was Rs 14.22 cr after Rs 0.63 cr of interest, Rs 2.60 cr of depreciation and Rs 2.24 cr of tax.
Other income remains part of the profit bridge
Other income of Rs 4.69 cr formed part of the Rs 16.46 cr profit before tax, so earnings quality needs to be read alongside operating performance rather than net profit alone. The reported tax rate was 13.61%, with EPS at Rs 0.26.
PEM refocus and AI expansion were management themes
Management said Subex's refocus on PEM had started delivering results and that it had won a new BAFM deal from a European operator. The company also said it was expanding AI capabilities across clients and continuing product development with support from research and development spending.
Results were filed after market close
The consolidated results were filed after market close on 5 August 2026. The immediate market response is therefore not part of this readout.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹79 cr |
| Other income | ₹5 cr |
| Expenses | ₹64 cr |
| Operating profit | ₹15 cr |
| Operating margin (%) | 18.88% |
| Interest | ₹1 cr |
| Depreciation | ₹3 cr |
| Profit before tax | ₹16 cr |
| Tax | ₹2 cr |
| Net profit | ₹14 cr |
| EPS (₹) | ₹0.26 |
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
New orders
- Subex won a new BAFM deal from a European operator in Q1 FY27.
New initiatives
- Subex has begun refocusing on PEM, and says the effort has started delivering results.
- Subex is expanding AI capabilities across its client base.
- Subex continues product development supported by strong research and development spending.
What to watch
- Whether operating margin holds above 18.88% in the next reported quarter.
- Whether profit continues to track operating performance despite Rs 4.69 cr of other income.
- Evidence that the PEM refocus and European BAFM win translate into subsequent business activity.