Subex Limited – Investor Presentation Summary

Key Operational Highlights

  • 150+ installations across 100+ countries
  • 92% customer retention rate
  • ~70% recurring revenue business model
  • 700+ employees across the globe
  • 30+ years of domain expertise in telecom sector

Key drivers of operational performance: AI-native product development, deep telecom domain expertise, and large-scale data processing capabilities with 500B+ records/day processed across live telco networks.

Segment-wise Performance

Business segments include:

  • Fraud Management (FM): Comprehensive telco fraud detection, prevention and case management
  • Fraud Zap: Lightweight fraud detection use cases for faster deployment
  • Business Assurance (BA): Revenue Assurance, Margin Assurance, Migration Assurance
  • Partner Ecosystem Management (PEM): Partner Settlement, Routing Optimization

Explanation of significant changes: AI integration across all product segments enabling faster deployment and higher margin services.

Financial Highlights

FY27 Year-to-Date performance:

  • EBITDA: ₹79.45 crore
  • EBITDA Margin: 21.2%
  • PAT Margin: 17.9%
  • QoQ Growth: 8.9%
  • CPQ YoY Growth: 19.7%

Drivers of financial performance: Turnaround from FY2023 with EBITDA improvement from (3.9)% to 14.9% TTM, PAT improvement from (18.4)% to 10.2% TTM, ~54% increase in cash and cash equivalents to ₹184.8 crore, and 39% employee productivity improvement.

Geographical Revenue Split

Regional presence across:

  • EMEA region
  • Asia region
  • Americas region

Balance Sheet Snapshot

  • Cash and cash equivalents: ₹184.8 crore (54% increase)
  • Strong cash flow generation and improved liquidity position

Capex & Cash Flow Health

Investment Rationale: Reinvestment in core telco business where company has competitive moat, focusing on AI-driven product development and expansion.

Strategic & R&D Initiatives

Investments in Innovation:

  • GenAI SDLC dramatically reducing development timelines
  • FraudzapTM built in months vs multi-year traditional development
  • Pre-built AI/ML models for faster deployment
  • LLM generated controls vs human configuration
  • AI Agent managed services vs human management

Expected impact on growth: AI is changing the revenue and margin profile of the business through reduced implementation cycles, higher R&D intensity, and G&A automation.

Strategic Rationale: Expanding into $4.3B total addressable market with focus on telco adjacencies, new-age leakage vectors, and agentic in-house managed service replacement.

Industry Trends & Business Environment

Macro/Industry Trends: Telco industry leaking 2.46% of revenues to fraud, with revenue losses growing at almost 6x industry growth. 1.3T AI sessions per year (53.5% on mobile), 27B tokens per day, and 6G being AI & Agent native.

Impact on Company: Creates $30-40B new spending every year in $1.7 trillion telecom industry, positioning Subex with deep domain expertise and large-scale data engineering capabilities.

Management Commentary & Growth Outlook

Strategic Outlook: "In the next 3 years, the new leaders will be set. We believe Subex has the assets to win this phase" with a 3-5 year window open for telecom industry reshaping.

Risks and Opportunities: Risks include fluctuations in earnings, integration challenges, client concentration, liability for damages, withdrawal of tax incentives, political instability, and intellectual property protection.