Route Mobile Ltd Management Discussions

of Financial Condition and Results of Operations

Overview

We are a prominent global provider of cloud-based communication platforms, serving enterprises, over- the-top (OTT) services providers and mobile network operators. Our portfolio spans a full spectrum of digital engagement solutions ranging from messaging (A2P SMS, OTT messaging, RCS), voice, and email to support enterprises worldwide in building seamless, omnichannel customer experiences.

We cater to a broad array of sectors, including banking and finance, retail, aviation, e-commerce, logistics, healthcare, hospitality, pharmaceuticals, telecom, media, and entertainment. Our service suite has evolved to also include digital risk mitigation tools such as fraud detection and antiphishing capabilities.

Our clientele features some of the most recognised global brands, including several Fortune Global 500 companies.

In addition to enterprise communication services, we support mobile network operators with solutions like SMS firewalls, filtering and analytics, SMSC, MMSC, and monetisation tools helping them secure networks and generate incremental revenue.

Route Mobile Limited (RML/ Route Mobile/ Company) hosted the Belgian Economic Mission led by HRH Princess Astrid, strengthening Indo-Belgium business ties through strategic collaboration. We were recognised for Conversational Commerce Solution Innovation at the Telco Innovation Awards 2025 by Juniper Research. We received the Partnership Award at the RCS World Tour - India for introducing RCS Business Messaging in the Transit vertical. Weve been honoured with two prestigious Exchange4media awards: Demand Generation

Vendor/User of the Year and Best Use of Martech in Travel, Hospitality and Leisure. We were also awarded as the Solutions Partner of the Year 2024 at the Meta WhatsApp Business Summit in India. We have been featured as a Niche Player in the 2024 Gartner Magic Quadrant for CPaaS.

Established in 2004 and headquartered in Mumbai, India, Route Mobile has grown into a trusted global provider of cloud based Communication Platform as a Service (CPaaS). In the fiscal year ended March 31, 2025, we serviced over 3,200 customers, ranging from large multinational companies to small and mid-sized businesses. As of March 31, 2025, our global operations included 9 direct and 26 step-down subsidiaries serving our clients through more than 23 locations across Africa, Asia Pacific, Europe, Middle East and the Americas.

The Company has entered into a strategic partnership with Proximus Group, a leading telecommunications operator headquartered in Belgium. Pursuant to this partnership, Proximus, through its subsidiary Proximus Global SA/NV (formerly known as Proximus Opal SA/ NV), acquired 5771% of the voting share capital (on a fully diluted basis) from the founding shareholders (members of the promoter and promoter group of the Company) and an additional 24.99% through an open offer to the public shareholders of Route Mobile Limited. Subsequently, in compliance with applicable regulatory requirements pertaining to minimum public shareholding norms and/or to enhance market liquidity, the promoter entity, Proximus Global SA/NV, reduced its shareholding in Route Mobile to 74.86% during the same period.

This partnership strengthens Route Mobiles position in the global CPaaS (Communications Platform as a Service) market and supports our international growth strategy. The deal enables us to benefit from Proximuss global presence, especially in Europe and North America, while expanding further in high- growth regions like India, Africa, and Asia-Pacific. The combined capabilities of Route Mobile and Proximus are expected to drive growth, innovation, and longterm value for all stakeholders.

In the fiscal year ended March 31, 2025, we witnessed steady momentum in the adoption of our latest product innovations. These solutions are designed to help enterprises create richer, more engaging customer experiences. Details of the same are captured in the following description of our operations. Our operations are internally aligned into the following business verticals:

i. Enterprise and OTT

ii. Mobile Operator

iii. Digital Identity and Security Services

iv. Business Process Outsourcing (BPO)

Enterprise and OTT: Our Enterprise and OTT business vertical is focused on delivering cloud- communication platform services tailored to enterprise needs. This includes a comprehensive suite of solutions such as:

• A2P messaging, covering SMS, 2-Way messaging, and Acculync

• Enterprise email communication

• RCS messaging

• OTT messaging (also known as IP Based Messaging)

• Voice application services, which allow enterprises to route incoming and outgoing voice calls via the cloud directly into their systems. Our voice solutions also include Interactive Voice Response (IVR), Click2Call, missed call facility, outbound dialer.

We have seen strong adoption of our OTT messaging offerings which enable brands to create rich, interactive customer experiences using chatbots AI integration. These capabilities are driving deeper engagement among consumers across both domestic and international markets.

Mobile Operator: We support Mobile Network Operators (MNOs) through our proprietary communications platform and managed service offerings. Our core service offerings in this segment include A2P SMS filtering, analytics, monetisation, and hubbing solutions. We deliver AI/ML powered A2P SMS firewall and filtering solutions, enabling intelligent traffic management and fraud prevention. Additionally, we offer SMSC and MMSC solutions providing a comprehensive suite that supports MNOs in fully monetising their A2P SMS traffic. This end-to-end approach helps address the complete technical and commercial needs of operators across the messaging value chain.

Business Process Outsourcing (BPO): We offer a comprehensive suite of voice and non-voice services BPO services. Our voice-based offerings include customer care, technical support, booking assistance and payment collection services. Our non-voice services include client support through email and chat, IT helpdesk services, billing operations and data processing solutions.

We are members of GSMA, an industry organisation that represents the interests of MNOs worldwide. We are also members of MEF, CII, TEAM, BCCI and IAMAI, which provides us with representation at various international and national industry forums.

During FY 2024-25 our cloud communications platform processed over 156 billion transactions on a consolidated basis. We have built direct partnerships with MNOs to deliver global connectivity for our clients. As of March 31, 2025, we maintained direct relationships with more than 280 MNOs (consolidated level) and had access to over 900 networks worldwide at a consolidated level.

Focus on Next Generation Communication Solutions

Our strong commitment to innovating our product offerings and refining our go-to-market strategy continues to deliver positive outcomes for the Company.

In the past year, we have expanded our platform with new alternative communication channels such as Enterprise Voice, OTT/IP Messaging, Email, RCS Business Messaging, and Chatbots which has led to significant growth in our customer base and supported revenue diversification.

Driving Product momentum through Dedicated SBUs

Route Mobile has demonstrated the ability to consistently sign marquee deals with large enterprises. Heres a summary of our recent customer acquisitions:

We launched 365guard, an AI-powered SMS spam and fraud protection solution designed to safeguard MNOs and their users from SMS fraud, spam, and smishing threats.

We continued advancing smart mobility by partnering with PT MRT Jakarta to introduce a first-of-its-kind WhatsApp-based metro ticketing solution via vending machines, enabling commuters to access ticketing and travel information seamlessly through WhatsApp.

We also collaborated with IRCTC to implement WhatsApp-based utility communication services, further strengthening digital engagement across public services.

In partnership with Billeasy E Solutions, we supported L&T Metro Rail Hyderabad Ltd in launching a unique ticketing experience that leverages RCS and Google Wallet, allowing commuters to book, store, and access e-tickets effortlessly across digital touchpoints.

Expanding this innovation, we extended our WhatsApp-based ticketing platform to include Maha Mumbai Metro, in collaboration with PeLocal Fintech Private Limited.

Opportunities and Threats Opportunities

• Rising Global Demand for Omnichannel CX

Increasing enterprise demand for integrated messaging (SMS, RCS, OTT), voice, email, and chatbot-driven customer engagement solutions across verticals such as BFSI, retail, and healthcare offers strong tailwinds for growth.

• Shift from Legacy to Cloud Communications

Accelerated digital transformation across emerging and developed markets is driving migration from traditional telecom systems to agile, API-based CPaaS platforms creating strong demand for cloud-native offerings.

• Growth in A2P and RCS Messaging Volumes

The global rise in transactional and promotional messaging, especially through secure, rich media formats like RCS, opens monetisation avenues with both enterprises and MNOs.

• Expansion in Digital Identity and Fraud Prevention

Heightened focus on cyber-security, regulatory compliance (e.g., PSD2, KYC norms), and identity authentication presents cross-sell opportunities for the groups digital identity and anti-phishing suite.

• Strengthening MNO Relationships via Filtering & Monetisation Route Mobiles firewall, SMSC, and monetisation services are well positioned to help MNOs curb grey routes and unlock new revenue streams, particularly in under-penetrated emerging markets.

• AI and ML Integration in Communications

Demand for smarter, personalised communication experiences is driving adoption of Al-powered.

Threats

• Price Compression and Margin Pressure

Competition among global CPaaS players, is leading to declining ARPUs and thinner margins.

• Dependence on Large Enterprises and Global OTTs

Concentration risk from a few high-volume clients, including OTT platforms and Fortune 500 enterprises, makes revenue streams vulnerable to churn or pricing renegotiations.

• Regulatory and Data Compliance Risks

Complex and evolving telecom and data protection regulations across jurisdictions (e.g., GDPR, DPDPA in India) necessitate deep understanding and rapid implementation of security and data privacy related capabilities within the technology platform.

• Rising Carrier Charges and Grey Route Risks

Escalating termination charges by telecom carriers and persistent grey route traffic in some geographies can affect profitability and require constant investment in filtering infrastructure.

• Cybersecurity Threats and Service Disruptions

As a communications backbone provider, Route Mobile faces heightened exposure to cyber threats and potential DDoS or ransomware attacks, which could impact service continuity and client trust.

Consolidated Income Statement and Key Financial Metrics

Particulars	FY2025	FY2024	Y-o-Y growth
Revenue from operations	4,575.62	4,023.29	13.73%
Other Income	46.79	40.48	15.58%
Total income	4,622.41	4,063.77	13.75%
Gross Profit	950.90	860.52	10.50%
Gross Profit Margin (%)	20.78%	21.39%
EBITDA (Non-GAAP)	527.76	511.06	3.27%
EBITDA Margin (%)	11.53%	12.70%
Profit before exceptional item and Tax	444.56	438.24	1.44%
Profit before exceptional item and Tax Margin (%)	9.72%	10.89%
Profit before Tax (PBT)	426.11	455.08	-6.37%
PBT Margin (%)	9.31%	11.31%
Profit after Tax (PAT)	333.93	388.84	-14.12%
PAT Margin (%)	7.30%	9.66%

FY2024-25 was a pivotal period for Route Mobile marked by transformative partnerships, product innovation, geographic expansion, and meaningful progress toward long-term strategic goals. Amid evolving CPaaS industry dynamics and macroeconomic volatility, Route Mobile demonstrated resilience, achieving doubledigit revenue growth. As enterprises globally continue to invest in omnichannel engagement, Route Mobile is well-positioned to deliver scalable, secure, and intelligent communications solutions.

Route Mobile posted consolidated revenue from operations of Rs 4,575.62 crore in FY2024-25, a 13.7% increase from Rs 4,023.29 crore in FY2023-24. This growth reflects improved customer penetration, and higher adoption of new-age CPaaS products (IP based messaging, email, voice, etc.).

Gross Profit margin declined from 21.39% in FY2023-24 to 20.78% in FY2024-25 primarily due to increased contribution of relatively lower gross profit margin related party transactions.

Reconciliation of Consolidated Profit before tax (PBT) to EBITDA (Non-GAAP)

All figure in crores, unless specified

Particulars	FY2025	FY2024
Profit before exceptional item and tax (Ind AS)	444.56	438.24
(-) Other income	46.79	40.48
(+) Finance costs	40.91	27.25
EBIT	438.68	425.01
(+) Depreciation and amortisation expense	89.08	86.05
EBITDA (Non-GAAP)	527.76	511.06

EBITDA grew from Rs 511.06 crore in FY2023-24 to Rs 52776 crore in FY2024-25 in-line with revenue growth. The EBITDA margin remained healthy despite elevated investments in technology, integration, and go-to- market functions related to the Proximus partnership.

Depreciation and amortisation increased from Rs 86.05 crore in FY 2023-24 to Rs 89.08 crore in FY 2024-25.

Finance costs stood at Rs 40.91 crore in FY 2024-25, compared to Rs 2725 crore in FY 2023-24. The increase in the finance cost primarily relates to increase in interest on borrowing from banks from Rs 16.56 crore in FY 2023-24 to Rs 33.12 crore in FY 2024-25. In Q4 FY 2023-24, provision of Rs 26.54 crore was accounted for an onerous contract. However, the terms of the contract are being re-negotiated, on grounds of geo-political concerns and changes in market dynamics therein as per the provisions of the contract. In FY2024-25, one-time exceptional items negatively impacted PAT by Rs 18.45 crore.

Exceptional item pertains to: (a) for the year ended March 31, 2025 pertains to recognition of impairment loss of goodwill pertaining to a step down subsidiary, write off of an amount receivable from a MNO and loss incurred towards non fulfillment of a short-term contract with the said MNO netted off with the fair value gain of the contingent consideration pertaining to acquisition of a subsidiary in previous years; (b) for the year ended March 31, 2024 pertains to net of the fair value gain of the contingent consideration pertaining to acquisition of a subsidiary in previous years and recognition of impairment loss of goodwill pertaining to a step down subsidiary and provision of an onerous contract.

PAT decreased from Rs 388.84 crore in FY 2023-24 to Rs 333.93 crore in FY 2024-25.

Consolidated Balance Statement Summary and Key Financial Ratios

All figure in crores, unless specified

Particulars	FY2025	FY2024
Trade receivables	932.77	1,071.58
Days Sales Outstanding (on Revenue from Operations) (#)	80	80
Current Ratio (#)	2.11	2.06
Debt: Equity ratio (#)	0.18	0.16
Return on Equity (%)	14.41%	19.4%
Interest Coverage Ratio (#)	11	16

Focused initiatives to accelerate collection of outstanding receivables from customers resulted in a decrease in Trade Receivables in FY 2024-25. Days Sales Outstanding has remained steady at 80 days in FY 2023-24 and FY 2024-25.

Current Assets increased from Rs 2,130.38 crore in FY 2023-24 to Rs 2,736.06 crore in FY 2024-25, whereas Current Liabilities increased from Rs 1,035.25 crore to Rs 1,294.56 crore over the same period.

Interest Coverage ratio stood at 11 in FY 2024-25, compared to 16 in FY 2023-24. Interest coverage ratio is calculated on the basis on Earnings before Interest and tax (EBIT) divided by finance costs, for the relevant fiscal year/ period.

Human Resources

RML employs 1,576 employees (at a consolidated level) as on March 31, 2025. Of this, Call2Connect has a headcount of 735. RML has deployed 520 resources in India, and 321 resources across multiples global locations. The Technology team comprises 352 resources, focused primarily on developing new capabilities within the messaging platform, and creating next generation messaging solutions which address enterprises communication requirements and solutions to optimise monetisation for MNOs. RML closed FY 2023-24 with a headcount of 1,376 employees (at a consolidated level), of which Call2Connect employed 576 resources as on March 31, 2024.

Standalone Income Statement and Key Financial Metrics

All figure in crores, unless specified

Particulars	FY2025	FY2024	Y-o-Y growth
Revenue from Operations	832.21	667.08	24.75%
Other Income	96.38	100.43	-4.03%
Total Income	928.59	767.51	20.99%
Gross Profit	244.40	165.17	47.97%
Gross Profit Margin (%)	29.37%	24.76%
EBITDA	120.59	74.59	61.68%
EBITDA Margin (%)	14.49%	11.18%
Profit before exceptional item and tax	200.12	155.82	28.43%
Profit before exceptional item and tax Margin (%)	24.05%	23.36%
PAT	131.02	126.33	3.71%
PAT Margin (%)	15.74%	18.94%

EBITDA increased from Rs 74.59 crore in FY 2023-24 to Rs 120.59 crore in FY 2024-25. EBITDA calculation are provided in the table below.

All figure in crores, unless specified

Particulars	FY2025	FY2024
Profit before exceptional item and tax (Ind AS)	200.12	155.82
(-) Other income	96.38	100.43
(+) Finance costs	1.67	2.08
EBIT	105.41	57.48
(+) Depreciation and amortisation expense	15.18	17.11
EBITDA (Non-GAAP)	120.59	74.59
EBITDA margin % on a Non-GAAP basis	14.49%	11.18%

Standalone Balance Statement Summary and Key Financial Ratios

All figure in crores, unless specified

Particulars	FY2025	FY2024
Trade receivables	252.69	255.26
Days Sales Outstanding (on Revenue from Operations) (#)	111	114
Current Ratio (#)	3.18	5.71
Debt: Equity ratio (#)	0.00	0.00
Return on Equity (%)	10.70%	10.75%

Human Resources

Route Mobile Limited employs 520 employees (on a standalone basis) as on March 31, 2025.

Risk and concerns

Principal risks and uncertainties: There are a number of potential risks and uncertainties, which could have a material impact on the Companys long-term performance and could cause actual results to differ materially from expected results.

Liquidity risk

The Company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. External funding facilities are managed to ensure that both short-term and longer-term funding is available to provide short-term flexibility whilst providing sufficient funding to the Companys forecast working capital requirements.

Credit risk

The Company extends credit to customers of various durations depending on customer creditworthiness and industry custom and practice for the product or service. In the event that a customer proves unable to meet payments when they fall due, the Company will suffer adverse consequences. To manage this, the Company continually monitors credit terms to ensure that no single customer is granted credit inappropriate to its credit risk.

Competitor risk

The Company operates in a highly competitive market with rapidly changing product and pricing innovations. We are subject to the threat of our competitors launching new products in our markets (including updating product lines) before we make corresponding updates and development to our own product range. This could render our products and services out-of- date and could result in loss of market share. To reduce this risk, we undertake new product development and maintain strong supplier relationships to ensure that we have products at various stages of the life cycle.

Competitor risk also manifests itself in price pressures which are usually experienced in more mature markets. This results not only in downward pressure on our gross margins but also in the risk that our products are not considered to represent value for money. The Company therefore monitors market prices on an ongoing basis.

Internal Financial Controls, their adequacy and Internal Auditors

The Company has established a robust framework for internal financial controls. The Company has in place adequate controls, procedures and policies, ensuring orderly and efficient conduct of its business, including adherence to the Companys policies, safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records and timely preparation of reliable financial information. During the year, such controls were assessed and no reportable material weaknesses in the design or operation were observed. Accordingly, the Board is of the opinion that the Companys internal financial controls were adequate and effective during the FY 2024-25.

The Board has appointed M/s Pipalia Singhal & Associates, Chartered Accountants, Mumbai as the Internal Auditor of the Company for FY 2024-25 to conduct the internal audit basis a detailed internal audit plan which is reviewed each year in consultation with the Audit Committee.

Disclaimer - Management uses the Non-GAAP financial information, collectively, to evaluate its ongoing operations and for internal planning and forecasting purposes. Non-GAAP financial information is presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with Indian Accounting Standard (Ind AS), and may be different from similarly- titled non- GAAP measures used by other companies.