Subex Limited (SUBEXLTD) AI Stock Analysis

• Market Cap: ₹5.14B
• Dividend Yield: N/A
• Average Volume (3M): 264.43K
• Price to Earnings (P/E): 508.3
• Beta (1Y): 2.10
• Revenue Growth: -9.53%
• EPS Growth: 96.99%
• Country: IN
• Employees: 828
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.05
• Shares Outstanding: 562,002,900
• 10 Day Avg. Volume: 427,974
• 30 Day Avg. Volume: 264,433
• PEG Ratio: 0.27
• Price to Book (P/B): 2.31
• Price to Sales (P/S): 2.46
• P/FCF Ratio: 95.74
• 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: 46 Neutral
• Price Target: ₹10.50 ▼(-8.14% Downside)
• Action: Downgraded Date: 01/28/26
• Date: Action: Downgraded 01/28/26

Overall score is held down primarily by weak profitability and inconsistent cash generation, along with a bearish technical trend (price below key moving averages and negative MACD). Limited valuation support (negative P/E due to losses and no dividend data) further constrains the score.

Positive Factors

Strong equity base and low leverage

A strong equity position and low debt provide financial flexibility to fund R&D, support managed-service deployments and absorb telecom client payment cycles. This structural strength reduces refinancing risk and supports multi-quarter investments to regain profitability.

Recurring software and services revenue mix

A business model built on licensing/subscriptions, maintenance and managed services generates recurring revenue and higher retention potential with telco customers. That structural revenue mix supports predictable cash streams and opportunities to scale margins via software-led growth.

Recent positive free cash flow in latest period

Achieving positive free cash flow demonstrates operational cash generation capacity despite past volatility. Durable FCF enables reinvestment in product development and managed services, and provides a buffer to pursue strategic deals over the next several quarters.

Negative Factors

Negative net and EBITDA margins

Sustained negative EBITDA and net margins indicate structural cost or pricing issues in delivering telecom software and services. Without margin recovery, the firm will struggle to convert recurring revenue into durable profits, limiting reinvestment and long-term competitiveness.

Declining and volatile revenue trends

A meaningful recent revenue decline and historical volatility weaken predictability of subscription and services cash flows. This undermines capacity to plan long-term investments, hampers scale benefits and increases dependence on irregular project revenues.

Weak cash conversion and falling ROE

Difficulty converting accounting profits into cash and a declining ROE signal inefficient capital use and potential working-capital stresses. Over time this limits internal funding for growth, may force external financing, and reduces returns available to shareholders.

Subex Limited Business Overview & Revenue Model

Company Description

Subex Limited provides operations and business support systems to communication service providers (CSPs) worldwide. The company offers Fraud Management, a solution to address frauds across voice, data and digital services; Network Security, a suite off solutions, services, and consulting to secure networks and the components; Business Assurance, an active risk intelligence solution that assures revenues for business models; Partner Ecosystem Management, a platform that enables collaboration between communication services providers and their partners to manage digital and traditional partnerships; and Network Analytics, a solution to optimize network spends. It also provides IoT, IT, and OT solutions that are designed to secure connected assets, data, and investments; artificial intelligence based anomaly detection solutions that identify anomalies and mitigate risks; and digital identity solutions, as well as managed and business consulting services. The company was formerly known as Subex Azure Limited and changed its name to Subex Limited in December 2007. Subex Limited was founded in 1992 and is headquartered in Bengaluru, India.

How the Company Makes Money

Subex Limited generates revenue through a combination of software licensing, subscription services, and consulting fees. The company provides its software products on a subscription basis, allowing telecom operators to integrate and utilize its solutions for ongoing revenue assurance and fraud management. Key revenue streams include the sale of licenses for its software solutions, implementation and training services, and ongoing support and maintenance contracts. Additionally, Subex has formed strategic partnerships with telecommunications firms and technology providers, enhancing its market reach and providing bundled solutions that drive additional revenue. The company's focus on innovation and digital transformation also positions it to capitalize on emerging trends in the telecom industry, contributing to its financial performance.

Subex Limited Financial Statement Overview

Summary

Mixed fundamentals: a strong equity base and low leverage are positives, but profitability remains weak with negative net and EBITDA margins, and revenue/profitability have been volatile. Cash flow is inconsistent despite positive latest free cash flow.

Income Statement

Subex Limited has experienced volatility in its revenue and profitability. The revenue growth rate shows fluctuations, with a notable decline in recent years. The company reported a negative net profit margin in the latest period, indicating ongoing challenges in achieving profitability. Despite a positive gross profit margin, the EBITDA margin was negative, reflecting operational inefficiencies.

Balance Sheet

The balance sheet shows a strong equity position, with a healthy equity ratio. However, the company has faced a declining return on equity due to negative net income. The debt-to-equity ratio remains low, suggesting manageable leverage levels, which is a positive aspect.

Cash Flow

Cash flow has been inconsistent, with fluctuations in operating cash flow and free cash flow over the years. The company achieved a positive free cash flow in the latest period, but the operating cash flow to net income ratio indicates challenges in converting income to cash, partly due to negative net income.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.84B	2.86B	3.10B	2.79B	3.31B	3.72B
Gross Profit	1.30B	567.40M	768.80M	780.00M	1.04B	1.28B
EBITDA	203.80M	-35.20M	-1.57B	-220.70M	461.30M	1.07B
Net Income	-74.20M	-314.40M	-1.92B	-512.10M	209.90M	517.20M
Balance Sheet
Total Assets	0.00	4.87B	5.30B	7.04B	7.20B	7.27B
Cash, Cash Equivalents and Short-Term Investments	938.40M	938.40M	1.04B	1.20B	1.18B	1.43B
Total Debt	0.00	193.80M	281.60M	333.90M	146.80M	257.90M
Total Liabilities	-3.04B	1.82B	1.96B	1.82B	1.56B	1.78B
Stockholders Equity	3.04B	3.04B	3.34B	5.22B	5.64B	5.49B
Cash Flow
Free Cash Flow	0.00	73.40M	-110.10M	43.20M	-141.60M	823.30M
Operating Cash Flow	0.00	97.50M	-82.80M	92.50M	-87.60M	909.50M
Investing Cash Flow	0.00	-149.70M	331.50M	-378.10M	-353.40M	-72.20M
Financing Cash Flow	0.00	-120.50M	-93.40M	-65.10M	-128.80M	-320.70M

Subex Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SUBEXLTD, the sentiment is Negative. The current price of 11.43 is above the 20-day moving average (MA) of 9.95, above the 50-day MA of 10.41, and below the 200-day MA of 12.58, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 33.96 is Neutral, neither overbought nor oversold. The STOCH value of 8.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SUBEXLTD.

Subex Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INFOBEAN	77 Outperform	₹20.00B	26.47	―	0.13%	14.57%	80.44%
ADSL	66 Neutral	₹6.67B	19.26	―	0.96%	20.23%	-17.78%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
INSPIRISYS	61 Neutral	₹3.49B	7.85	―	―	-1.07%	187.83%
TRACXN	52 Neutral	₹3.60B	-28.04	―	―	―	―
SUBEXLTD	46 Neutral	₹5.14B	508.33	―	―	-9.53%	96.99%
HCL.INSYS	40 Underperform	₹4.27B	-18.04	―	―	-22.96%	28.55%

Subex Limited Corporate Events

Subex to Announce Q3 FY26 Results on 10 February, Schedules Earnings Call for 11 February

Subex Limited has announced that it will release its unaudited standalone and consolidated financial results for the third quarter and nine-month period ended 31 December 2025 on 10 February 2026. The management team, including the managing director and CEO, the vice president for corporate strategy, and the chief financial officer, will host an earnings call on 11 February 2026 to discuss the performance, providing investors and analysts with an opportunity to engage directly with leadership and assess the company’s operational and strategic progress.

Subex Strengthens Board with Appointment of Independent Director Alok Ohrie

Subex Limited has appointed industry veteran Alok Ohrie as an Additional Director in the capacity of Non-Executive, Independent Director, effective 4 January 2026, for a three-year term, subject to shareholder approval. The Board’s decision, based on the Nomination and Remuneration Committee’s recommendation and in compliance with SEBI’s disclosure norms, is aimed at strengthening the company’s independent oversight and governance framework, with the company confirming that Ohrie is not debarred by any regulatory authority and has no familial relationships with existing directors.

Subex Inducts Alok Ohrie as Independent Director for Three-Year Term

Subex Limited has strengthened its board by appointing industry veteran Alok Ohrie as an Additional Director in the category of Non-Executive, Independent Director, for a three-year term effective 4 January 2026, subject to shareholder approval. The move, based on the Nomination and Remuneration Committee’s recommendation, signals an effort to deepen independent oversight and governance at the company, with Ohrie confirming he is not debarred by market regulators, a detail likely to reassure investors and other stakeholders about regulatory compliance and board integrity.

Subex Inducts Venkata Erinti Narayana as Independent Director for Three-Year Term

Subex Limited has appointed Mr. Venkata Erinti Narayana as an Additional Director in the capacity of a Non-Executive, Independent Director for a term of three years, effective December 25, 2025, pending shareholder approval. The appointment, cleared by the company’s Nomination and Remuneration Committee and confirmed by the Board, is positioned as a governance-focused move to strengthen the company’s independent oversight and board composition, with the company confirming that Narayana is not debarred by securities regulators and has no disclosed relationships with existing directors, a point likely to reassure investors on compliance and board independence.