Subex Ltd Management Discussions

OVERVIEW

Global Industry Structure, Developments and Outlook

The global telecommunications industry is entering a new phase of value creation, where growth is increasingly being driven not only by connectivity but also by intelligence. As 5G investments mature and the digital economy continues to expand, telecom operators are shifting their focus from network deployment to monetising digital infrastructure through artificial intelligence (AI), cloud computing, advanced analytics, and data centres. This evolution is being reinforced by accelerating enterprise digital transformation, with organisations across industries increasing investments in AI, automation, cloud technologies, cybersecurity, and advanced analytics to enhance operational efficiency, strengthen resilience, and improve competitiveness. These structural trends continued to support resilient technology spending during FY26 and underscored the growing strategic importance of intelligent digital infrastructure and data-driven operations.

The global economy demonstrated relative stability, providing a supportive environment for sustained technology investments. Reflecting these favourable industry dynamics, Global Telecom Outlook projects global telecommunications

revenues to reach approximately US$1.32 trillion by 2029, representing a steady CAGR of 2.8%. As the convergence of connectivity and intelligence reshapes the industry landscape, telecom operators are increasingly positioning themselves as digital ecosystem enablers, unlocking new opportunities across enterprise services, AI- led solutions, and next-generation digital infrastructure.

Despite continued macroeconomic uncertainties arising from inflationary pressures, geopolitical developments, evolving trade dynamics, and regulatory changes, enterprise spending on strategic technology initiatives remained resilient during the year. Within this environment, the global telecommunications technology industry continued to broaden its role beyond traditional connectivity. Communications Service Providers (CSPs) are increasingly diversifying their offerings across Internet of Things (IoT), enterprise connectivity, private 5G networks, cloud-based services, fintech and mobile money solutions, content platforms, and API-driven digital services. As service portfolios expand and ecosystem partnerships become more interconnected, telecom operators are managing significantly greater operational complexity across networks, customer experience, billing, partner management,

and revenue assurance, reinforcing the need for intelligent, scalable, and integrated technology solutions.

Consequently, demand for solutions that help Communications Service Providers (CSPs) strengthen digital confidence, protect revenues, combat fraud, optimise partner ecosystems, and enable real-time, data-driven decision-making continues to grow. As telecom networks and digital ecosystems become increasingly complex, operators are investing in intelligent technologies that enhance visibility, strengthen governance, and support more autonomous operations. At the same time, growing emphasis on digital sovereignty, data privacy, cybersecurity resilience, and responsible AI governance is reshaping enterprise technology priorities and influencing investment decisions across global markets.

Several industry trends are expected to shape the competitive landscape over the coming years:

• AI-led Network and Business Automation:

Telecom operators are increasingly adopting AI, machine learning, and autonomous operational frameworks to improve network efficiency, customer experience, and revenue optimisation.

• Digital Service Monetisation: Operators are expanding into digital services including IoT, fintech, enterprise connectivity, and API-based business models, driving demand for agile billing, settlement, and partner ecosystem management solutions.

• Real-Time Assurance and Fraud Prevention:

Increasing transaction volumes, digital onboarding, and AI-enabled fraud techniques are intensifying the need for advanced fraud management, signalling intelligence, and business assurance platforms.

Subexs portfolio of Fraud Management, Business Assurance, Partner Ecosystem Management, Managed Services, and Business Consulting Services is aligned with the evolving requirements of Communications Service Providers (CSPs). By combining deep telecom domain expertise with AI-enabled capabilities, the Company supports customers in protecting revenues, managing operational complexity, and strengthening digital confidence across increasingly interconnected

telecom ecosystems.

While macroeconomic uncertainties, geopolitical developments, evolving regulatory requirements, and competitive pressures may continue to influence enterprise technology spending, telecommunications operators are expected to maintain investments in strategic initiatives that enhance operational efficiency, strengthen digital trust, enable service innovation, and support business transformation.

Looking ahead, the continued convergence of AI, intelligent automation, and digital transformation is expected to sustain demand for scalable, outcome- driven solutions that enable CSPs to navigate an increasingly dynamic telecom landscape.

The Indian Economy

India Industry Landscape: From Connectivity to Intelligent Digital Ecosystems

Indias telecommunications and technology landscape is undergoing a fundamental transformation as the convergence of Artificial Intelligence (AI), cloud computing, digital public infrastructure (DPI), and next-generation connectivity reshapes the digital ecosystem. Supported by strong digital public infrastructure, deep technology talent, and growing engineering R&D capabilities, India continues to strengthen its position as a global innovation hub for next- generation telecommunications and digital technologies. The rapid expansion of digital public services, enterprise technology adoption, and nationwide 5G rollout is creating a conducive environment for innovation and accelerating the development of advanced digital solutions across industries.

Subex believes the future of telecommunications will be shaped by intelligent networks, trusted digital ecosystems, and autonomous operations. As the industry evolves beyond connectivity towards value creation, the Company is focused on helping customers harness AI to automate risk, strengthen digital trust, and simplify operational complexity. Anchored in its vision of enabling businesses to become fearless, seamless, and fraud-free by design, we remain committed to delivering solutions that create measurable business outcomes and support the long-term evolution of the global telecom ecosystem.

Subex: Powering the Next Generation of Telecom AI

Subex Limited ("Subex") is a telecom AI solutions provider with over three decades of industry expertise. The Company leverages Artificial Intelligence, advanced analytics, and domain- led innovation to help customers mitigate risks, combat fraud, strengthen business assurance, and optimise partner ecosystems. Through its HyperSense, ROC, FraudZapTM and AI Agent Squad™ portfolio and award-winning solutions spanning Business Assurance, Fraud Management, and Partner Ecosystem Management, Subex empowers organisations to make faster and more informed decisions across the data value chain.

Opportunities and Threats

Subex operates in a growing addressable market estimated at approximately US$4.3 billion, supported by its deep telecom domain expertise, AI capabilities, and long-standing customer relationships.

Opportunities

AI-Driven Fraud Management

The growing incidence of subscription fraud, account takeover, social engineering, and A2P/ SMS fraud is driving demand for AI-native fraud detection solutions. As fraud techniques become increasingly sophisticated, telecom operators are shifting from rule-based systems to intelligent, continuously learning platforms capable of real- time threat detection and prevention.

Expansion into Telecom Adjacencies

Telecom operators are increasingly expanding into mobile money, fintech, IoT, MVNO/MVNE services, and digital infrastructure offerings. These adjacent domains require specialised fraud prevention, assurance, and risk management capabilities, creating new growth opportunities for telecom- focused solution providers.

Autonomous Operations and AI-Led Automation

The emergence of agentic AI is enabling telecom operators to automate investigation, assurance, partner management, and operational workflows. This shift presents significant opportunities

for solutions that improve efficiency, reduce operational costs, and support autonomous decision-making across telecom ecosystems.

Digital Identity and Deepfake Protection

The rise of AI-generated identities, voice cloning, and deepfake-enabled fraud is increasing the need for advanced authentication and identity verification solutions. As telecom operators become critical enablers of digital trust, demand for real-time fraud detection and identity protection technologies is expected to grow significantly.

Cloud, Data and Infrastructure Assurance

The increasing adoption of cloud infrastructure and digital platforms is creating demand for solutions that ensure billing accuracy, infrastructure cost optimisation, revenue protection, and operational assurance. This represents a growing opportunity as operators accelerate their digital transformation initiatives.

AI-Led Operational Transformation

As telecommunications networks, customer ecosystems, and business operations become increasingly complex, CSPs are accelerating the adoption of AI and advanced analytics to improve decision-making, automate processes, optimise network performance, and enhance customer experiences. This growing focus on AI- enabled transformation is creating opportunities for solutions that combine domain expertise, trusted data, and intelligent automation to deliver measurable business outcomes.

Threats

While the long-term outlook for telecom AI, business assurance, and digital trust solutions remains favourable, the operating environment continues to be influenced by evolving macroeconomic, technological, regulatory, and competitive challenges. The pace of technology change, increasing customer expectations, and heightened scrutiny on technology investments require businesses to continuously innovate, demonstrate measurable value, and adapt to a rapidly changing market landscape.

Telecom Capital Expenditure Constraints

telecommunications industry continues to operate in an environment of disciplined capital allocation and pressure to maximise returns on network and technology investments. During periods of constrained capital expenditure, communications service providers (CSPs) may defer or reprioritise investments in digital transformation, operational modernisation, and business support platforms. This could affect demand for software solutions and business assurance platforms, presenting a potential challenge for technology providers serving the communications sector.

Geopolitical and Regional Business Risks

The global business environment continues to be influenced by geopolitical tensions, regional conflicts, trade restrictions, and evolving regulatory landscapes across various markets.

Such developments may delay customer investment decisions, disrupt project execution, and affect business activity across impacted regions. In addition, restrictions on cross-border

operations and supply chains may hinder project implementation and technology deployment. Prolonged geopolitical uncertainty could influence market sentiment and create volatility in demand across certain geographies.

Intensifying Competitive and Technology Landscape

The markets in which the Company operates continue to attract investments from established enterprise software providers, telecommunications technology vendors, hyperscalers, and emerging AI-native companies. Competitors with greater financial resources, broader product portfolios, or stronger market presence may increase competitive intensity, exert pricing pressures, accelerate innovation cycles, and influence customer purchasing decisions. Maintaining differentiation through domain expertise, innovation, and customer value creation remains critical to sustaining the Companys competitive position.

Segment-wise or product-wise performance.

Performance Across Key Solution Areas

GEOGRAPHY WISE REVENUE

% of Total Revenue

SERVICE WISE REVENUE

% of Total Revenue

Support & others continues to be the largest revenue contributor, followed by License, Implementation & customisation and Managed services.

Portfolio

Business Assurance

Subexs Business Assurance solutions continued to support Communications Service Providers (CSPs) in managing the growing complexities associated with 5G adoption, digital services expansion, and evolving partner ecosystems. The platform enables operators to strengthen revenue integrity, monitor profitability, manage partner settlements, and enhance governance across key operational and business domains.

During FY26, the Company continued to embed AI and advanced analytics across its Business Assurance portfolio, enabling customers to derive deeper insights from operational and business data, proactively identify risks, and accelerate decision-making. By leveraging Al-powered intelligence and automation, Subex is helping CSPs transition from reactive assurance practices

to predictive and outcome-driven assurance models, enhancing operational effectiveness while supporting broader digital transformation objectives.

Fraud Management

AI-First Fraud Management

Subexs AI-First Fraud Management solution continued to support telecom operators in combating increasingly sophisticated fraud risks across digital ecosystems. During FY26, the Company strengthened its Al-driven detection, automation, and real-time monitoring capabilities, while advancing GenAI-powered investigative agents to enhance fraud prevention, accelerate case resolution, and improve operational efficiency.

FraudZap™

FraudZap™ is Subexs Al-powered, plug-and-play fraud detection solution designed to address

various frauds such as handset and device fraud, Mobile Subexs Signalling Risk Intelligence provides real-time detection and prevention of fraud and security threats at the network signalling layer and is a module which integrates with ROC and HyperSense Fraud Management Solutions. By continuously monitoring network activity and leveraging advanced analytics, the platform enables telecom operators to identify emerging threats, prevent fraudulent activity before it occurs, strengthen network security, and enhance customer trust. The solution also supports faster fraud detection, improved operational responsiveness, and protection against evolving telecom security risks.

FraudZap™ is Subexs AI-powered, plug-and- play fraud detection solution designed to address various frauds such as handset and device fraud, Mobile Money fraud and MVNO fraud. Handset Fraudzap™ is a FraudZap™ based offering to address handset fraud across physical and digital sales channels. The solution enables rapid deployment, real-time fraud detection, and automated risk mitigation, helping communications service providers to reduce fraud losses and accelerate time-to-value. Its lightweight architecture and focused use-case approach support faster implementation and operational efficiency compared to traditional fraud management deployments

Partner Ecosystem Management

Subexs Partner Ecosystem Management (PEM) solutions enable Communications Service Providers (CSPs) to efficiently manage increasingly complex partner ecosystems across digital services, wholesale, roaming, enterprise, and emerging business models. The platform supports key processes across the partner lifecycle, including onboarding, billing, settlements, dispute management, and performance monitoring, through an integrated and automated framework.

During FY26, the solution continued to help operators improve partner visibility, streamline operational processes, enhance commercial decision-making, and support the monetisation of digital and ecosystem-driven services. By providing real-time insights, automated workflows, and flexible settlement capabilities, the platform

enables CSPs to strengthen partner collaboration, improve operational efficiency, and accelerate growth across evolving digital ecosystems.

• Partner Lifecycle Management

• Digital Services Billing

• Wholesale Billing & Routing

• Enterprise Billing

• Roaming Settlements

Managed Services & Consulting

Managed Services

Subexs Managed Services offerings enable telecom operators to enhance operational efficiency through specialised support across revenue assurance, fraud management, business operations, and technology infrastructure. Backed by deep telecom domain expertise, established governance frameworks, and round-the-clock service capabilities, the Company helps customers strengthen business continuity, optimise operational performance, and maximise value from their technology investments. The service portfolio also encompasses infrastructure management, change management, project governance, reporting, and shared services support.

Consulting & Advisory Services

Subexs Consulting & Advisory Services help telecom operators strengthen business assurance, fraud management, operational effectiveness, and transformation outcomes through a combination of strategic advisory and execution support. Leveraging decades of telecom domain expertise, the Company assists customers with risk assurance, transformation assurance, maturity assessments, process optimisation, margin assurance, and automation roadmaps. These services enable operators to enhance operational resilience, improve profitability, and maximise value from their technology and business transformation initiatives.

Key Announcements during the year Subex Redefines Intelligence in Revenue Assurance & Fraud Management with Embedded GenAI

Subex has announced a major leap forward in telecom intelligence by integrating Embedded Generative AI (GenAI) into its HyperSense Revenue

Assurance & Fraud Management (RA&FM) platform. This marks a foundational shift in how telecom systems operate: moving from static configuration to dynamic, AI-driven reasoning.

Subex Launches FraudZap™ - A Lightweight Fraud Detection Platform - Debuts with Handset Fraud Use Case

Subex has announced the launch of FraudZap™, a lightweight, AI-powered fraud detection platform designed to help Telecom Operators combat fast- evolving fraud with unmatched speed and agility. The platforms first out-of-the-box use case targets the growing threat of Handset Fraud, one of the most pervasive challenges for telcos today.

Subex Recognized for Second Consecutive Year in 2025 Gartner? Magic Quadrant™ for AI in CSP Customer and Business Operations

Subex has been recognised for the second consecutive year in the 2025 Gartner? Magic Quadrant™ for AI in CSP Customer and Business Operations report. This recognition reinforces Subexs leadership in helping Communication Service Providers (CSPs) harness AI to drive operational excellence, elevate customer experience, and unlock new growth opportunities.

Subex Unveils New Brand Identity to Power the Intent-Driven, AI-Native Telecom Era

Subex announced the launch of a new brand identity, reflecting the companys bold ambition to lead in the AI-powered telecom era with clarity, confidence and purpose.

Outlook

The global business environment is expected to remain characterised by disciplined capital allocation, even as digital transformation continues to be a strategic priority across industries. Communications Service Providers (CSPs) are expected to remain selective in technology spending, prioritising investments that deliver measurable improvements in revenue growth, operational efficiency, customer experience, and risk management. As investment cycles in 5G and fibre mature, operators are increasingly shifting their focus from network expansion to maximising returns through AI-enabled automation, intelligent operations, and platform-led digital services.

At the same time, the rapid adoption of AI, the expansion of hyperscale data centres, and the growing demand for secure, low-latency digital infrastructure are reshaping investment priorities across the telecom ecosystem. These trends are accelerating the need for trusted technology partners that can help operators simplify legacy environments, automate complex business processes, strengthen fraud prevention and business assurance, and unlock greater value from existing network investments. This evolving demand environment continues to support long-term opportunities for specialised telecom technology providers such as Subex.

With its deep telecom domain expertise, AI-led product portfolio, and focus on business assurance, fraud management, and partner ecosystem solutions, Subex remains well-positioned to capitalise on these evolving industry opportunities while supporting customers in building secure, resilient, and intelligent digital ecosystems.

Forward-Looking Statement

Our decision-making, and digital trust are becoming increasingly central to business performance. As Communications Service Providers (CSPs) manage more complex networks, ecosystem-based business models, and AI-enabled services, the focus is shifting from standalone technology deployments to measurable business outcomes delivered through intelligent and integrated platforms.

Subex believes its telecom domain expertise, AI- led innovation, and specialised solution portfolio position the Company to capitalise on these opportunities. However, the outlook remains subject to macroeconomic conditions, geopolitical developments, regulatory changes, competitive dynamics, technology adoption trends, customer spending patterns, and execution-related factors.

Certain statements contained herein may constitute forward-looking statements based on current expectations, assumptions, and estimates. Actual results may differ materially due to various risks and uncertainties. The Company undertakes no obligation to publicly update or revise any forward-looking statements except as required by applicable law.

Risks and concerns.

The Company has established a comprehensive risk management framework designed to identify, evaluate, monitor, and mitigate risks that may affect the achievement of its strategic and operational objectives. Risks are assessed based on their potential impact and likelihood of occurrence, enabling focused management attention on areas of material significance.

The framework encompasses a broad spectrum of risks, including operational, financial, regulatory, market, technology, and cybersecurity-related risks. Key risk exposures and the effectiveness of mitigation measures are reviewed periodically by the management and are subject to oversight by the Board of Directors and the Audit Committee.

In addition to existing risk exposures, the Company continuously monitors emerging risks arising from changes in the business, technology, regulatory, and economic environment. While risks are not categorised rigidly, management prioritises those that could materially impact business operations, financial performance, reputation, or long-term growth prospects.

This ongoing and proactive approach to risk management enhances organisational resilience, supports informed decision-making, and strengthens the Companys ability to respond effectively to evolving business challenges.

The following are the risks

• Foreign Exchange Risk

A significant portion of the Companys revenues is derived from international markets, exposing it to fluctuations in foreign currency exchange rates, particularly the USD/INR exchange rate. Adverse currency movements may impact profitability and cash flows. To mitigate this risk, the Company follows a calibrated hedging strategy. It maintains prudent hedge coverage on its net foreign currency exposure while retaining flexibility to benefit from favourable currency movements.

• Project Execution and Supply Chain Risks

Delays in customer-side infrastructure readiness and extended hardware procurement

cycles may affect project implementation timelines. To address such risks, the Company adopts cloud-based deployment alternatives where feasible, incorporates infrastructure readiness requirements during project planning, and works closely with approved vendor ecosystems to facilitate timely project execution.

• Talent and Capability Risks

The rapid adoption of Artificial Intelligence (AI) and digital technologies has intensified competition for specialised talent. The Companys ability to attract, develop, and retain skilled professionals remains critical to sustaining innovation and execution. To address this, Subex continues to invest in building an Al-native workforce through targeted capability development initiatives and GenAI-enabled engineering practices. During FY26, the Company strengthened these efforts through initiatives such as Code Shield workshops and the adoption of GitHub Copilot to enhance developer productivity and accelerate product releases. These initiatives support talent retention and capability building.

• AI Infrastructure Availability Risks

Growing demand for GenAI solutions has increased dependence on specialised computing infrastructure, including GPUs. Supply constraints and extended procurement lead times may affect product development and customer deployments. The Company mitigates this risk by optimising solution architectures, leveraging a mix of on-premise and cloud infrastructure, and enabling efficient deployment of open-source AI models for selected use cases.

• Technology Disruption and Competitive Risks

Rapid advancements in AI platforms and managed agent ecosystems may alter customer preferences and intensify competitive pressures. The Company continuously evaluates emerging technologies, benchmarks its offerings against market developments, and adopts a balanced strategy combining proprietary innovations with selected third-party AI capabilities to

deliver differentiated business outcomes for customers.

• Cybersecurity and Data Privacy Risks

Increasing cyber threats, evolving data privacy regulations, and rising expectations around responsible AI usage continue to elevate compliance and security requirements. Any failure to effectively address these risks could impact customer trust, reputation, and business performance.

• Market Positioning Risk

The Company operates in a highly competitive technology and telecommunications software market, where established global players, niche solution providers, and emerging technology companies continuously introduce new offerings and business models. Intensifying competition may impact the Companys ability to acquire new customers, retain existing relationships, sustain pricing levels, and maintain market share. To address this risk, the Company continues to focus on innovation, AI-led product development, domain expertise, customer-centric solutions, and differentiated value propositions to enhance competitiveness and support long-term growth.

The Company remains committed to proactively identifying emerging risks and strengthening its risk management practices to support sustainable growth, operational resilience, and long-term value creation.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established a comprehensive internal control framework that is commensurate with the nature, scale, and complexity of its operations. The framework is designed to support efficient business conduct, safeguard assets, ensure reliable financial reporting, promote regulatory compliance, and facilitate the timely identification and mitigation of operational and strategic risks.

The Company maintains internal financial

controls in accordance with the requirements of the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. These controls are periodically reviewed and tested for design and operating effectiveness through a structured Internal Financial Controls (IFC) Risk Control Matrix (RCM) framework. The effectiveness of key controls is independently evaluated by both the Internal Auditors and Statutory Auditors. Based on these assessments, the management believes that the internal control systems remain adequate and effective, and no material weaknesses were identified during the year under review.

The scope of internal audit is determined annually and approved by the Board/Audit Committee, covering both financial and non-financial areas across the organization. Internal audits are conducted periodically throughout the year, and the findings are presented to the Audit Committee. Observations requiring management action are tracked through a formal Action Taken Report (ATR) mechanism and reviewed periodically until closure, thereby ensuring continuous improvement and accountability.

The Company has further strengthened its control environment by integrating technology-driven controls, IT governance practices, cybersecurity safeguards, and data protection measures into its core business processes. Key focus areas include role-based system access controls, information security management, data backup and recovery processes, and continuous monitoring of technology-related risks. These controls are subject to periodic review through internal audits and management oversight.

Based on the reviews conducted during the year by the Internal Auditors, Statutory Auditors, management, and the Audit Committee, the Company is of the view that its internal control systems and internal financial controls are adequate, commensurate with the nature and scale of its operations, and are operating effectively. No material weaknesses in the design or effectiveness of such controls were observed during the year under review.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Financial Highlights/Year Ending 31st March	2025-26	2024-25
Particulars	Consolidated	Standalone	Consolidated	Standalone
Revenue from operations	27,906	25,607	28,561	26,881
Other Income	3,176	3,142	695	219
Total Income	31,082	28,749	29,256	27,100
Earnings before Interest, Tax, Depreciation and exceptional items (EBItDa)	2,878	184	645	131
Profit/(Loss) before Exceptional items & tax	4,215	4,211	(2,404)	(5,001)
Exceptional Items	(466)	(3,295)	422	422
Profit/(Loss) before tax	3,749	916	(1,982)	(4,579)
Tax expense	896	330	1,162	399
Profit/ (Loss) after tax	2,853	586	(3,144)	(4,978)
Other comprehensive income	883	(11)	152	(12)
Equity dividend %	Nil	Nil	Nil	Nil
Share Capital	28,100	28,100	28,100	28,100
Reserves & Surplus	6,181	(10,941)	2,348	(11,613)
Net worth	34,281	17,159	30,448	16,487
Gross Property, Plant & equipment, right-of-use asset and other intangible assets	6,548	11,042	6,756	11,390
Net Property, Plant & equipment, right-of-use asset and other intangible assets	3,201	3,042	2,087	2,141
Total Assets	55,190	34,443	48,696	29,977

Key Financial Ratio (Consolidated)

Key Financial Ratios (Consolidated)	2026	2025	Change
Return on Capital Employed (RoCE) %	3.7%	(8.9%)	141%
Return on Net Worth (RoNW)%	8.8%	(9.9%)	189%
Basic EPS (Rs/Share)	0.51	(0.57)	191%
Debtors turnover (Days)	112	114	2%
Current ratio	2.64	2.22	19%
Debt equity ratio	0.08	0.06	33%
Operating Profit Margin (%)	10.3%	2.2%	357%
Net Profit Margin (%) or sector-specific equivalent ratios, as applicable	10.2%	(11.0%)	193%
Details of any change in Return on Net Worth as compared to the immediately previous financial year, along with a detailed explanation thereof	The improvement in ROCE, RoNW, operating profit, and net profit margin was primarily driven by cost optimization initiatives, supplemented by non-operating gains such as interest on income tax refunds and gains arising from lease terminations.

 

Key Financial Ratios (Standalone)	2026	2025	Change
Return on Capital Employed (RoCE) %	(6.9%)	(0.7%)	125%
Return on Net Worth (RoNW)%	3.5%	(26.3%)	113%
Basic EPS (VShare)	0.11	(0.90)	112%
Debtors turnover (Days)	70	89	21%
Current ratio	1.05	0.80	31%
Debt equity ratio	0.15	0.11	36%
Operating Profit Margin (%)	7.3%	(4.1%)	277%
Net Profit Margin (%) or sector-specific equivalent ratios, as applicable	2.3%	(18.5%)	112%
Details of any change in Return on Net Worth as compared to the immediately previous financial year, along with a detailed explanation thereof	The improvement in ROCE, RoNW, operating profit, and net profit margin was primarily driven by cost optimization initiatives, supplemented by non-operating gains such as interest on income tax refunds and gains arising from lease terminations.

COMMENTARY ON FINANCIAL STATEMENTS

Share Capital

As at March 31, 2026, the Companys issued, subscribed, and paid-up equity share capital stood at ?28,100 lakhs comprising 56,20,02,935 (Fifty-Six Crores Twenty Lakhs Two Thousand Nine Hundred and Thirty-Five only) equity shares of ?5 each. During FY26, the Company did not issue or allot any equity shares, and consequently, there was no change in the share capital structure during the year.

Reserves and Surplus Securities premium

On a standalone and consolidated basis, the balance in the Securities Premium Account stood at ?16,709 lakhs as at March 31, 2026 as against ?16,657 lakhs as at March 31, 2025. The increase during the year was primarily attributable to the profit on sale of treasury shares.

Retained Earnings

On a standalone basis, as of March 31, 2025 there was a deficit balance in retained earnings amounting to ? 33,038 lakhs. As of March 31, 2026, the deficit balance has reduced to ?32,463 Lakhs.

On a consolidated basis, as of March 31, 2025 there was a deficit balance in retained earnings amounting to ?5,802 lakhs. As of March 31, 2026,

the deficit balance has reduced to ?.2,962 Lakhs

Exchange differences on translating the financial statements of a foreign operation

On a consolidated basis, as of March 31, 2026, the balance of Foreign Currency Translation Reserve of (? 9,602) Lakhs has been included in the Reserves and Surplus to bring it in line with Schedule III of the Act.

On a consolidated basis, as of March 31, 2025, the balance of the Foreign Currency Translation Reserve of (?10,498) Lakhs has been included in the Reserves and Surplus to align with Schedule III of the Act.

Total equity attributable to equity holders of the Company

On a standalone basis, the total equity attributable to equity holders of the Company has increased to ^17,159 lakhs as on March 31, 2026, from ? 16,487 lakhs as on March 31, 2025. The movement was primarily due to profit during the year.

Employee Stock Options Plan

Under the Subex Employees Stock Option Scheme-2025, the Company granted 38,00,000 options during the year ended March 31, 2026, compared with 1,50,000 options during the year ended March 31, 2025. The net amount carried in

respect of stock options outstanding on March 31, 2026, amounts to 192 Lakhs (Previous year: 315 Lakhs).

Property, plant, equipment, right-of-use asset and other intangible assets

During the year, the Company added f3,500 Lakhs on consolidated basis and f3,229 Lakhs on standalone basis, to its gross block. The Company disposed-off certain assets no longer required...

The Companys net block of property, plant and equipment, right-of- use asset and other intangible assets was f3,201 Lakhs (Previous year f2,087 Lakhs) on consolidated basis and f3,042 Lakhs (Previous year f2,141 Lakhs) on standalone basis.

Goodwill

The carrying value of goodwill is reviewed periodically in accordance with the applicable accounting standards and the Companys established impairment assessment framework. Based on the assessment carried out during the year, the management believes that the carrying value of goodwill remains appropriate as at March 31, 2026.

On a consolidated basis, the carrying value of goodwill stood at f19,614 lakhs as at March 31, 2026, compared to f19,614 lakhs as at March 31, 2025.

Further details relating to goodwill and impairment assessment are provided in the relevant notes to the consolidated financial statements.

Investments

The Company periodically evaluates the carrying value of its investments in accordance with the applicable accounting standards and its internal assessment framework. Based on the review undertaken during the year, the management believes that the carrying value of its investments remains appropriate as at March 31, 2026.

During the year, the Company also undertook transactions related to its investments in subsidiaries and other entities to meet its capital allocation and business requirements.

On a standalone basis, the aggregate carrying value of investments stood at f16,048 lakhs as at March

31, 2026, compared to f15,526 lakhs as at March 31, 2025.

Further details relating to investments are provided in the relevant notes forming part of the standalone financial statements.

Trade Receivables

The Companys customer base comprises telecommunications operators, and related associated customers across multiple geographies, resulting in a diversified receivables portfolio with no significant concentration of credit risk.

Trade receivables are regularly monitored and evaluated in line with the Companys credit risk management framework. Appropriate provisions are recognised wherever required based on an assessment of recoverability and expected credit losses. The management believes that the overall quality and composition of trade receivables remain satisfactory.

As of March 31, 2026, trade receivables (net of impairment provisions) stood at f 4,231 lakhs on a standalone basis and f9,351 lakhs on a consolidated basis, compared to f5,533 lakhs and f7,762 lakhs, respectively, in the previous year.

The corresponding provision for doubtful debts amounted to f 4,363 lakhs on a standalone basis and f7,747 lakhs on a consolidated basis, compared to f6,328 lakhs and f6,714 lakhs, respectively, in the previous year.

Further details are provided in the relevant notes forming part of the standalone and consolidated financial statements.

Cash and Cash Equivalents

The Company maintains a prudent liquidity position through a combination of bank balances, EEFC accounts, term deposits, and mutual fund investments to support operational requirements and strategic initiatives.

As at March 31, 2026, the aggregate balance in current account, EEFC accounts, mutual funds, and term deposits stood at f9,780 lakhs on a standalone basis, compared to f3,451 lakhs as at March 31, 2025. On a consolidated basis, the corresponding balance stood at f17,704 lakhs as

at March 31, 2026, as against f10,619 lakhs in the previous year.

The management continues to maintain adequate liquidity levels to meet its operational, investment, and financial obligations while preserving financial flexibility.

Borrowings

The Company remained debt-free during the year under review. On a consolidated basis, total borrowings stood at Nil as at March 31, 2026, unchanged from the previous year.

The debt-free position reflects the Companys prudent financial management and its ability to fund operational requirements through internal accruals and available liquidity, providing financial flexibility to support ongoing business and strategic initiatives.

Income

The Company operates in the telecom software products and related services industry and is managed as a single operating segment by the Chief Operating Decision Maker (CODM). Accordingly, the business continues to be reported as a single reportable segment in accordance with applicable accounting standards.

Revenue from operations stood at f27,906 lakhs during FY26, compared to f28,561 lakhs in the previous year.

The Company derives its revenue from a geographically diversified customer base across the Americas, Europe, the Middle East and Africa (EMEA), India, and the Asia-Pacific region through the delivery of software products, platforms, and related services.

Other Income

Other income primarily comprises interest earned on bank deposits, gains/(losses) on mutual fund investments, refunds of research and development expenses, gains on lease terminations, interest on income tax refunds, and other miscellaneous income..

Expenditure

Employee benefit expenses stood at f16,456 lakhs on a consolidated basis during FY26, compared to f18,518 lakhs in the previous year. The movement in employee costs was primarily attributable to workforce rationalisation initiatives and optimisation of resource deployment.

The Company continued to focus on aligning its talent base with evolving business priorities while maintaining operational efficiency and supporting long-term growth objectives.

Operating Profits

On a consolidated basis, the Company reported an operating profit before interest, depreciation, impairment allowance for trade receivables, tax, and exceptional items of f2,878 lakhs during FY26, compared to f645 lakhs in the previous year. Improvements in operating efficiency, business mix, and margins in the core telecom business primarily drove performance.

On a standalone basis, the operating profit before interest, depreciation, impairment allowance for trade receivables, tax, and exceptional items stood at f184 lakhs during FY26 compared to f131 lakhs in the previous year.

Interest

Finance costs on a consolidated basis amounted to f327 lakhs during FY 26, compared to f222 lakhs in the previous year. On a standalone basis, finance costs stood at f296 lakhs, as against f194 lakhs in FY 2024-25.

A significant portion of the finance costs comprised interest expense on lease liabilities recognised in accordance with Ind AS 116 - Leases. Interest on lease liabilities amounted to f311 lakhs on a consolidated basis (Previous year f196 lakhs) and f292 lakhs on a standalone basis during the year (Previous year f186 lakhs).

Further details relating to finance costs are provided in the notes forming part of the standalone and consolidated financial statements.

Depreciation

Depreciation and amortisation expense amounted to f1,208 lakhs on a consolidated basis during FY26, compared to f 1,412 lakhs in the previous

year. On a standalone basis, depreciation and amortisation expense stood at ?1,158 lakhs as against ?1,266 lakhs in FY 2024-25.

The depreciation and amortisation charge includes depreciation on right-of-use assets recognised in accordance with Ind AS 116 - Leases, amounting to ?881 lakhs on a consolidated basis (Previous year ?1,015 lakhs) and ?779 lakhs on a standalone basis during the year (Previous year ?864 lakhs).

Further details relating to depreciation, amortisation, and lease-related assets are provided in the notes forming part of the standalone and consolidated financial statements.

Tax Expense

The Companys tax expense for FY26 amounted to ?330 lakhs on a standalone basis, compared to ?399 lakhs in the previous year. The tax charge comprised current tax, deferred tax adjustments, foreign withholding taxes, and other tax-related provisions, as applicable.

On a consolidated basis, tax expense stood at ?896 lakhs during FY26, as against ?1,162 lakhs in FY 2024-25. The consolidated tax charge includes current tax, deferred tax adjustments, and foreign withholding taxes arising from the Companys international operations.

Further details relating to taxation are provided in the notes forming part of the standalone and consolidated financial statements.

Net Profit

FY26 marked a notable turnaround in the Companys operating performance, with the business returning to operating profitability on a consolidated basis, the Company reported a net profit of ?2,853 lakhs for FY26, compared with a loss of ?(3,144) lakhs in FY25. Total comprehensive income for the year stood at ?3,736 lakhs as against a loss of ?(2,992) lakhs in FY 2024-25.

On a standalone basis, the Company recorded a net profit of ?586 lakhs during FY26, compared to a loss of ?(4,978) lakhs in the previous year. Total comprehensive income amounted to ?575 lakhs, as against a ?(4,990) lakhs loss in FY 2024-25.

The movement in profitability during the year reflects the combined impact of revenue performance, operating efficiencies, finance costs, depreciation and amortisation, taxation, and other business-related factors.

Earnings per Share

Basic Earnings Per Share (EPS) on a consolidated basis stood at ?0.51 per equity share for FY26, compared to (0.57) per equity share in the previous year. On a standalone basis, Basic EPS was ?0.11 per equity share, as against (0.90) per equity share in FY 2024-25.

The movement in EPS during the year was primarily attributable to the Companys overall financial performance. Detailed computation of Earnings Per Share is provided in the notes to the standalone and consolidated financial statements.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING THE NUMBER OF PEOPLE EMPLOYED

Subexians: Empowering Talent. Enabling Transformation.

At Subex, human capital remains a fundamental driver of innovation, operational excellence, and sustainable value creation. As the Company advances its strategic transformation towards becoming an Al-first telecom technology and digital trust solutions provider, continued investment in people, capabilities, and culture remains central to its long-term success.

During FY26, the Company continued to strengthen its talent ecosystem through focused investments in workforce capability, leadership development, employee engagement, performance excellence, and future-ready skills. Our people strategy is designed to foster a high-performance culture that combines deep domain expertise, technological innovation, customer-centricity, and agile execution.

As of March 31, 2026,the Company had 726 professionals working across its global operations. Supported by a diverse and highly skilled workforce, Subex continues to leverage talent as a strategic differentiator in delivering innovative solutions to communications service providers and enterprises worldwide.

Building Future-Ready Capabilities

The rapid evolution of Artificial Intelligence, automation, cloud technologies, cybersecurity, and digital ecosystems continues to reshape the technology landscape. In response, the Company remained focused on strengthening capabilities across critical growth areas, including AI, Machine Learning, Data Science, Telecom Analytics,

Product Engineering, Cybersecurity, and Digital Transformation.

Subex continued to invest in structured learning and development initiatives to enhance technical expertise, leadership effectiveness, and functional excellence. Employees were provided access to specialised learning programmes, digital learning platforms, professional certifications, and role- based development pathways designed to support both individual growth and organisational priorities.

Attracting and Retaining High-Impact Talent

The Companys talent acquisition strategy remained focused on attracting specialised professionals to support its evolving product, technology, and innovation agenda. In addition to targeted lateral hiring and employee referral programmes, the Company continued to strengthen its future talent pipeline through structured internship and early-career engagement initiatives, providing young talent with opportunities to develop relevant skills and gain

exposure to emerging technologies. These efforts support the Companys objective of building a future-ready workforce aligned with its long-term growth and innovation priorities.

Recognising that talent remains a critical competitive advantage, Subex continued to focus on employee retention, career progression, internal mobility, and capability enhancement while fostering an environment that encourages innovation, collaboration, and continuous learning.

Performance-Led Culture

Subex maintains a robust performance management framework that aligns individual objectives with organisational goals and strategic priorities. The framework promotes accountability, meritocracy, innovation, and customer-centricity while providing employees with opportunities for professional growth and advancement.

The Company continued to strengthen a culture of recognition through various reward and recognition initiatives that celebrate individual excellence, team achievements, innovation, and business impact. These initiatives reinforce employee engagement and contribute to a high- performance work environment.

Employee Well-being and Engagement

Employee well-being remains an important component of the Companys people philosophy.

Subex continues to provide a supportive, inclusive, and collaborative work environment that promotes employee health, safety, and overall well-being. Flexible work practices, employee assistance programmes, wellness initiatives, and engagement activities continued to support workforce resilience and productivity.

The Company remains committed to fostering a workplace culture grounded in mutual respect, diversity, inclusion, ethical conduct, and equal opportunity, enabling employees to contribute meaningfully and achieve their professional aspirations.

Industrial Relations

Industrial relations across the organization remained cordial and harmonious throughout the year. The Company continued to maintain open communication channels, constructive employee engagement mechanisms, and transparent people practices that support a positive workplace environment. No significant industrial relations issues or work disruptions were reported during FY26.

During the year, the Government of India notified the four Labour Codes, replacing the existing labour law framework. In response, the Company undertook the necessary impact assessment and actuarial evaluation of employee benefit obligations and recognised the resulting financial impact in accordance with applicable accounting guidance. The Company continues to monitor the finalisation of relevant Central and State Rules and other regulatory developments to facilitate appropriate implementation and compliance.

Subex believes that its people are its most valuable asset. By nurturing talent, strengthening leadership capabilities, fostering a culture of innovation and accountability, and building future-ready capabilities, the Company remains well-positioned to execute its strategic priorities and create long- term value for all stakeholders.