Subex Ltd

Subex Limited: Trading Window Closed from October 1, 2026 till the expiry of 48 hours after the declaration of Unaudited Financial Results of the Company for the quarter and half year ending on September 30, 2026.

ESOP grant details

• NRC approved grant of 2,750,000 ESOP 2025 options to eligible employees.
• Exercise price: Rs 9 per option.
• From unallocated options of the Subex Employee Welfare and ESOP Benefit Trust.
• Approval via circulation on September 24, 2026 under Regulations 30 and SBEB Regulations 2021.
• Target group: employees one level below Senior Management for retention.

Award details

• Awarding entity: a major mobile network operator in the Asia Pacific region.
• Nature and scope: deployment of Subex's Partner Ecosystem Management solutions.
• Contract value: US$ 5 million.
• Contract period: 5 years with optional 2-year extension.
• International entity; no promoter/group interest.
• Payment terms and commercial uplift: extension includes upward revision of commercials.
• Related party/arm's length: No.
• Material impact: no explicit impact disclosed.

Resolutions and outcomes

• Resolution 1 (Ordinary): Formulation and implementation of Subex Employees Stock Option Scheme 2026. Approved.
• Resolution 2 (Ordinary): Grant of stock options to employees of Subex subsidiaries under ESOP 2026. Approved.
• Resolution 3 (Ordinary): Authorization to ESOP Trust to acquire company shares in the secondary market. Approved.
• Resolution 4 (Ordinary): Grant of loan to Subex Employee Welfare and ESOP Benefit Trust. Approved.
• Record date 07-Aug-2026; total shareholders on record: 338,793.
• Aggregate voting: in favour about 83.87%, against about 16.13%.

Award details

• Awarding entity: international leading African mobile operator; deployment of HyperSense Fraud Management across mobile networks.
• Contract value USD 0.6 million for a three-year engagement.
• Promoter/related party interest: No; arm's length.
• Engagement expands Subex's fraud management footprint in Africa.

New European logo order

• Awarded by an international European open-access fibre operator.
• EUR 0.6 million, three-year hosted and managed Partner Ecosystem Management solutions with end-to-end operations and ongoing support.
• No promoter group interest or related-party transactions disclosed.

Business overview

• Core telco software stack covers Fraud Management, Revenue Assurance, and PEM.
• AI embeds GenAI capabilities across products to accelerate PMF and upsell.
• Exited non-core lines; reinvest in core telco business with moat.
• 3-5 year growth window; TAM of $4.3B; $1.7T telco AI opportunity.

Operational highlights

• FY27 YTD EBITDA ₹79.45 Cr; PAT margin improved to 10.2%.
• 150+ installations across 100+ countries; 700+ employees.
• Customer retention 92%; recurring revenue ~70%.
• Cash and equivalents ₹184.8 Cr; up ~54% since FY23.
• EBITDA margin expanded from -3.9% to 14.9%; PAT margin from -18.4% to 10.2%.

Financial performance

• Recurring revenue constitutes ~70% of revenue.
• Back to profitability trajectory since FY23.
• AI-enabled product strategy reduces deployment cycles and enables upsell.

Capital structure & liquidity

• No debt detail disclosed; liquidity supported by cash growth to ₹184.8 Cr.

Strategic priorities & outlook

• Exited non-core; reinvest in core telco business with moat.
• AI-enabled product strategy to shorten development cycles and drive AI upsell.
• 3-5 year growth window with large TAM and AI-led growth.
• Geographic expansion across North America, South America, Europe, and the Middle East.

Risks & governance

• Risks include earnings volatility, client concentration, competition, and integration.
• Mitigation: AI flywheel and annuity revenue.

Meeting Details

• Date: August 19, 2026.
• Conference: Non-Deal Roadshow.
• Mode: Physical; Venue: Mumbai.
• Time: 10:00 AM to 05:00 PM.
• Meeting format: Group or One-on-One.

Participants

• Key participants: company management.

Purpose

• Purpose: Analyst/Institutional Investor meeting to discuss business updates.

Availability

• Investor presentation will be uploaded on the company's website.

Resolutions via postal ballot

• Resolution 1 (Special): Formulate Subex ESOP-2026 up to 5% of paid-up capital via ESOP Trust; outcome not disclosed.
• Resolution 2 (Special): Extend ESOP-2026 option grant to employees of subsidiaries; outcome not disclosed.
• Resolution 3 (Special): Authorize ESOP Trust to acquire equity shares in secondary market; outcome not disclosed.
• Resolution 4 (Special): Grant interest-free loan to ESOP Trust for secondary market funding; outcome not disclosed.
• Dilution potential: up to 5% of paid-up capital via ESOP-2026.
• Trust acquisitions limited to 5% of paid-up equity capital.
• Maximum options per employee: 25 lakh per year or 1% of issued capital.
• Total options under ESOP-2026 capped at 5% of paid-up capital.
• No new shares issued; ESOPs funded via secondary market acquisitions.
• Vesting: options vest 1-4 years subject to performance and employment.
• Trust will not vote on held shares; employees vote after transfer.
• Scheme administered by Nomination & Remuneration Committee.
• Exercise price equals market price or such rate as NRC decides; not below average secondary market price.
• Option grants subject to vesting schedule; minimum one year, maximum four years.