Route Mobile announced its Q2 FY27 results, reporting a 5.4% year-on-year revenue growth to INR 1,180 crore. The company saw a recovery in gross margin to 22.4% and highlighted the significant contribution of new products like RCS and WhatsApp, which grew over 30% and now account for more than 10% of revenue. The successful acquisition of Heltar Technologies in July 2026 was a key business development, strengthening its AI-enabled customer engagement platform capabilities.
Route Mobile Announces Q2 FY27 Financial Highlights
Route Mobile Limited has released its financial results for the second quarter of fiscal year 2027 (Q2 FY27), ending September 30, 2026. The company reported a total revenue from operations of INR 1,180 crore, marking a 5.4% increase year-on-year and a 2.4% increase quarter-on-quarter. For the first half of FY27, revenue grew 7.4% year-on-year to INR 2,331 crore. The company processed 47.6 billion billable transactions in Q2 FY27.
Strategic Progress and Product Growth
During the earnings call, Tushar Agnihotri, Chief Executive Officer, highlighted the company’s strategic shift towards a full-stack AI-enabled customer engagement platform. The portfolio of new products, including RCS, WhatsApp, and other IP messaging solutions, demonstrated robust growth, increasing by 36.7% year-on-year and 35.8% quarter-on-quarter to reach INR 128 crore in Q2. These new products now contribute over 10% of the company’s revenue, up from approximately 8% a year ago.
Gross Margin Recovery and Heltar Acquisition
Gross profit margin saw a significant recovery, reaching 22.4% in Q2, up from 20.9% in Q1 FY27 and compared to 22.1% in Q2 FY26. This improvement was primarily driven by higher-margin traffic from new products and existing customers. A key strategic move during the quarter was the completion of the acquisition of Heltar Technologies in July 2026. This acquisition, for a total consideration of INR 33.7 crore, is expected to strengthen Route Mobile’s non-SMS portfolio and add AI-native no-code customer journey orchestration capabilities.
Business Metrics and Outlook
Key business metrics indicated a net revenue retention of 105% for the first half of FY27. Recurring revenue accounted for 93% of revenue over the past 12 months. The company noted that 80 customers now generate more than $1 million in annual billing. Client concentration has eased, with the top 5 customers accounting for 30% of revenue, down from 33% last year. Looking ahead, Route Mobile plans to focus on converting its pipeline for high-margin opportunities, scaling Heltar, and maintaining cost discipline.
Financial Performance Summary
Rajeshwar Singh Gill, Group Chief Financial Officer, provided a detailed financial summary. Gross profit in Q2 FY27 was INR 2,640 million, an increase of 6.8% year-on-year and 9.8% sequentially. Adjusted EBITDA for Q2 was INR 1,184 million, an increase of 8.7% compared to the previous quarter, with an adjusted EBITDA margin of 10%. Adjusted profit after tax was INR 825 million, a decrease of 17.8% year-on-year but an increase of 20.4% sequentially.
Source: BSE
