Route Mobile, Ltd. (ROUTE) AI Stock Analysis

• Market Cap: ₹37.46B
• Dividend Yield: 1.54%
• Average Volume (3M): 11.81K
• Price to Earnings (P/E): 21.5
• Beta (1Y): 0.96
• Revenue Growth: 6.36%
• EPS Growth: -54.41%
• Country: IN
• Employees: 492
• Sector: Technology
• Sector Strength: 88
• Industry: Telecommunications Services
• EPS (TTM): 15.60
• Shares Outstanding: 63,003,082
• 10 Day Avg. Volume: 11,941
• 30 Day Avg. Volume: 11,811
• PEG Ratio: -1.25
• Price to Book (P/B): 2.52
• Price to Sales (P/S): 1.34
• P/FCF Ratio: 10.57
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ₹660.00 ▼(-9.70% Downside)

Route Mobile Ltd. scores well due to its strong financial performance, characterized by robust revenue growth and a solid balance sheet. The technical analysis suggests some bearish momentum, but valuation metrics indicate moderate pricing. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Revenue Growth

Five-year revenue expansion from 9.56bn to 45.76bn demonstrates scalable demand and successful customer acquisition in CPaaS. Sustained top-line growth supports operating leverage, funds product and platform investment, and strengthens competitive positioning over the medium term.

Balance Sheet Strength

Consistently low leverage and a strong equity base provide financial flexibility to fund growth, absorb shocks, or pursue M&A. A well-capitalized balance sheet reduces refinancing risk and supports durable investments in infrastructure and global expansion over the coming months.

Free Cash Flow Generation

The shift to positive free cash flow indicates improved cash conversion and operational discipline. Reliable FCF enables reinvestment in platform capabilities, funds working capital, and lowers dependency on external financing, improving long-term operational sustainability.

Negative Factors

EPS Decline

A sharp EPS contraction (~-54%) despite revenue growth signals margin pressure or non-recurring charges impacting profitability. Persistent earnings weakness can limit reinvestment, constrain shareholder returns, and indicate operational or pricing challenges that may persist medium term.

Cash Flow Volatility

Operating cash flow has shown notable volatility even as FCF turned positive. Such variability suggests uneven cash conversion from usage-based revenues and could strain liquidity in slower quarters, complicating capital allocation and planning over a 2-6 month horizon.

Revenue Concentration

Heavy dependence on A2P messaging and usage-based CPaaS fees concentrates revenue in a commoditized segment. This exposes the company to regulatory, carrier-pricing and competitive risks that can compress margins and limit durable, diversified growth unless product mix expands.

Route Mobile, Ltd. Business Overview & Revenue Model

Company Description

Route Mobile, Ltd. (ROUTE) is a leading cloud communications platform provider headquartered in India. The company specializes in offering a comprehensive suite of messaging, voice, and enterprise-grade solutions designed to enhance customer engagement and connectivity. Its core products include messaging services such as SMS, voice solutions, and various API integrations that facilitate seamless communication for businesses across multiple sectors, including telecommunications, e-commerce, and financial services.

How the Company Makes Money

Route Mobile generates revenue primarily through its diverse range of communication services offered to enterprises and businesses. The company's revenue model is centered around transaction-based fees for messaging services, subscriptions for its cloud-based communication platform, and charges for API usage. Key revenue streams include SMS and voice traffic, where Route Mobile earns money by facilitating message delivery and voice calls for its clients. Additionally, the company has established significant partnerships with telecom operators, allowing it to leverage their networks to provide enhanced services. The growing demand for digital communication solutions, especially in the wake of increased remote interactions, has further contributed to its earnings, positioning Route Mobile as a key player in the cloud communications market.

Route Mobile, Ltd. Financial Statement Overview

Summary

Route Mobile Ltd. shows strong financial health with robust revenue growth, stable profit margins, and a solid balance sheet with low leverage. Despite some cash flow volatility, effective cash management strategies are in place.

Income Statement

Route Mobile Ltd. has demonstrated robust revenue growth, expanding from 9.56 billion to 45.76 billion over five years, indicating a strong growth trajectory. The gross profit margin has remained consistent, around 15%, reflecting stable profitability. Despite a slight decline in net income in the most recent year, the net profit margin remains healthy. The company's EBIT and EBITDA margins show efficient operational management, enhancing its competitive positioning in the telecommunications sector.

Balance Sheet

The balance sheet of Route Mobile Ltd. shows a strong equity base with a debt-to-equity ratio consistently below industry norms, indicating low leverage and reduced financial risk. The equity ratio demonstrates a well-capitalized company, with equity making up a substantial portion of total assets. Return on equity has been stable, underscoring efficient use of shareholder funds. The company's cash position and low net debt further solidify its financial stability.

Cash Flow

The cash flow analysis reveals strong free cash flow generation, despite fluctuations in operating cash flow. The company has transitioned from negative to positive free cash flow, signifying improved cash management. The operating cash flow to net income ratio indicates that earnings are well-supported by cash flows, though there have been periods of volatility which could pose potential risks if not managed carefully.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	45.23B	45.76B	40.23B	35.69B	20.02B	14.06B
Gross Profit	6.74B	6.02B	6.60B	7.87B	4.20B	2.77B
EBITDA	5.39B	5.20B	5.70B	4.84B	2.38B	1.90B
Net Income	2.94B	3.19B	3.75B	3.27B	1.66B	1.33B
Balance Sheet
Total Assets	0.00	38.26B	34.72B	28.85B	26.59B	10.22B
Cash, Cash Equivalents and Short-Term Investments	13.49B	13.49B	6.43B	8.12B	10.40B	4.80B
Total Debt	0.00	4.68B	3.78B	1.40B	162.20M	199.60M
Total Liabilities	-24.64B	13.62B	13.01B	10.57B	9.84B	3.73B
Stockholders Equity	24.64B	24.32B	21.50B	18.20B	16.73B	6.52B
Cash Flow
Free Cash Flow	0.00	5.81B	-1.33B	351.50M	1.17B	2.14B
Operating Cash Flow	0.00	6.02B	-975.90M	732.10M	1.35B	2.22B
Investing Cash Flow	0.00	-2.60B	-21.20M	1.12B	-8.38B	-2.26B
Financing Cash Flow	0.00	-337.90M	1.58B	-1.08B	8.24B	2.11B

Route Mobile, Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 730.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ROUTE, the sentiment is Negative. The current price of 730.9 is above the 20-day moving average (MA) of 636.51, above the 50-day MA of 667.33, and below the 200-day MA of 830.19, indicating a bearish trend. The MACD of -26.83 indicates Positive momentum. The RSI at 36.32 is Neutral, neither overbought nor oversold. The STOCH value of 39.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ROUTE.

Route Mobile, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LATENTVIEW	74 Outperform	₹84.09B	44.02	―	―	31.50%	11.32%
ROUTE	72 Outperform	₹37.46B	21.49	―	1.54%	6.36%	-54.41%
MTARTECH	69 Neutral	₹90.21B	142.14	―	―	12.06%	16.16%
TANLA	69 Neutral	₹67.93B	13.63	―	3.28%	3.31%	-11.27%
MASTEK	65 Neutral	₹63.64B	16.55	―	1.62%	11.91%	-1.02%
HAPPSTMNDS	62 Neutral	₹62.95B	30.99	―	1.26%	21.31%	-16.27%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Route Mobile, Ltd. Corporate Events

Route Mobile Re-approves ESOP Allotment, Marginally Increases Paid-Up Capital

Route Mobile Limited has rescinded an earlier December 18, 2025 intimation and, via a fresh approval by its Nomination and Remuneration Committee on December 24, 2025, has re-approved the allotment of 5,500 equity shares under its Employee Stock Option Plan 2017, effective upon receipt of the exercise price. Following this ESOP-related issuance, the company’s paid-up share capital has marginally increased from Rs. 62,99,75,820 to Rs. 63,00,30,820, taking the total number of equity shares outstanding from 6,29,97,582 to 6,30,03,082, a small dilution that modestly expands the equity base while continuing to use stock options as a key component of employee compensation and retention.

Mark Reid to Depart Proximus Group, Impacting Route Mobile’s Board

Route Mobile Limited has announced that Mark Reid, who serves as a Board Member of Proximus Global S.A. and Chairman of Route Mobile’s Board, will be leaving Proximus Group at the end of January 2026 to pursue other opportunities in the UK. Mark Reid has been instrumental in executing Proximus Group’s strategic initiatives, such as the #inspire2022 and #bold2025 strategies, which have led to significant financial growth and successful divestment programs. His departure marks a significant transition for the company, as he played a key role in its financial and operational achievements.

Route Mobile Announces Financial Results and Declares Interim Dividend

Route Mobile Limited’s Board of Directors has approved the unaudited financial results for the quarter and half-year ending September 30, 2025, reflecting the company’s ongoing financial transparency and commitment to stakeholders. Additionally, the company declared a second interim dividend of Rs. 3 per equity share, showcasing its strong financial position and dedication to returning value to shareholders. The lapse of 3,000 stock options due to employee cessation was also noted, indicating active management of employee stock options.

Route Mobile Declares Interim Dividend and Reports Financial Results

Route Mobile Limited’s Board of Directors announced the approval of unaudited financial results for the quarter and half-year ending September 30, 2025, and declared a second interim dividend of Rs. 3 per equity share. This decision reflects the company’s strong financial performance and commitment to returning value to shareholders. Additionally, the board noted the lapse of 3,000 stock options due to employee cessation, which may impact employee retention strategies.

Route Mobile Declares Interim Dividend and Approves Financial Results

Route Mobile Limited’s Board of Directors has approved the unaudited financial results for the quarter and half-year ending September 30, 2025, and declared a second interim dividend of Rs. 3 per equity share for the financial year 2025-26. Additionally, the company noted the lapse of 3,000 stock options due to employee cessation, and trading windows for designated persons will reopen on November 6, 2025.

Route Mobile Announces Financial Results and Interim Dividend

Route Mobile Limited announced the approval of its unaudited financial results for the quarter and half-year ending September 30, 2025, alongside the declaration of a second interim dividend of Rs. 3 per share for the fiscal year 2025-26. Additionally, the company reported the forfeiture of 3,000 stock options due to an employee’s cessation of employment, reflecting its ongoing adjustments in employee stock option plans.

Route Mobile Unveils Financial Results in Investor Presentation

Route Mobile Limited announced an investor presentation detailing its unaudited financial results for the quarter and half-year ending September 30, 2025. This presentation, aimed at analysts, highlights the company’s financial performance and is available on their website, potentially impacting investor perceptions and market positioning.

Route Mobile Reports Q2FY26 Financial Results

Route Mobile Limited announced its financial results for Q2FY26, reporting revenue from operations at Rs. 1,119.42 crore, a slight increase from the previous year. However, the company faced a significant decline in Profit After Tax, reporting a loss of Rs. 18.83 crore compared to a profit of Rs. 107.03 crore in Q2FY25. Despite these challenges, the company highlighted strong operational performance and remains optimistic about its long-term strategy and market opportunities.

Route Mobile Announces Q2 Financials and Dividend Declaration

Route Mobile Limited’s Board of Directors approved the unaudited financial results for the quarter and half-year ending September 30, 2025, indicating a proactive approach to transparency and regulatory compliance. Additionally, the company declared a second interim dividend of Rs. 3 per equity share, reflecting its commitment to shareholder returns. The lapse of 3,000 stock options due to employee cessation was also noted, which might impact employee retention strategies.