ROUTE MOBILE LIMITED (ROUTE)
Micro CapTelecom stocks · Micro cap · NSE
RML offers a scalable, flexible Omnichannel CPaaS platform to global enterprises. It boasts 280+ direct MNO connects, access to 900+ MNOs, 20+ data centers, 6 SMSCs, and serves 3,100+ active billable clients across 20+ locations.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Strong fundamentals, management trust is supportive, but price trend argues for patience. Suitable for staggered entry or watchlist confirmation rather than aggressive buying.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Average · 37/100margin compression · Rev +10% YoY · PAT +17% YoY · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,152 Cr | +9.6% | +1.9% |
| EBITDA | ₹105 Cr | +11.7% | -22.8% |
| Operating margin | 9.0% | +0 bps | -300 bps |
| PAT | ₹69 Cr | +16.9% | -39.5% |
| PAT margin | 6.0% | +38 bps | -409 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Q4 FY26 revenue declined 3.8% YoY but grew 2.2% QoQ, while full-year revenue fell 3.7% YoY. Gross Profit and Adj. PAT saw strong YoY growth in Q4 (+16.6%, +34.6% respectively), driven by margin expansion and strategic focus on regional business.
The company's strategic shift towards higher-margin traffic and domestic markets is evident in the improved gross and PAT margins despite a YoY revenue decline. While overall revenue growth is a concern, the focus on profitability and strong cash conversion supports the underlying thesis. Monitoring sustained domestic market growth and operating cost management is crucial.
Expanding Product Portfolio
New products revenue grew 11.3% YoY in FY26 to ₹3,526 mn, leveraging WhatsApp for customer engagement and real-time delivery solutions.
Strategic Focus on Domestic Markets
Management states strategic focus on domestic markets, primarily India, is driving revenue growth.
Retention of Higher Margin Traffic
Company focuses on retaining higher margin traffic from existing customers, contributing to gross margin expansion.
Enhanced Routing Strategy
Enhanced routing strategy is delivering higher gross profit margins.
Strategic Focus on Domestic Markets
Management states strategic focus on domestic markets (primarily India) is driving revenue growth.
Increased Focus on Regional Business
Y-o-Y Gross margin expansion reflects increased focus on regional business.
Retention of Higher Margin Traffic
Focus on retention of higher margin traffic from existing customers.
Enhanced Routing Strategy
Enhanced routing strategy is delivering higher gross profit margins.
YoY Revenue Decline
Q4 FY26 revenue decreased by 3.8% YoY, and FY26 revenue decreased by 3.7% YoY.
New Products Revenue Normalization
Q-o-Q decline in new products revenue due to normalization of excess volume received during festive season.
Moderation in ILDO Business
Slight moderation in relatively lower gross profit ILDO (International Long Distance Operator) business.
Increased Operating Costs
Operating costs increased by 10% YoY due to salary increments and certain trade receivables written off.
Fluctuations in Earnings & FX Rates
Risks include fluctuations in earnings, revenue, profits, and foreign exchange rates.
Global CPaaS Competition
Competition in CPaaS globally is identified as a risk.
Talent Attraction & Retention
Ability to attract and retain highly skilled professionals is a risk.
Revenue Concentration
Revenues are highly dependent on clients in the United States of America.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Q4 results show mixed trends with YoY revenue decline but QoQ growth, while profitability metrics (Gross Profit, Adj. PAT) show strong YoY improvement. Both comparisons are needed to assess sequential momentum and annual strategic shifts.
FY26 Revenue
₹44,082 mn (-3.7% YoY)
Q4 FY26 Revenue
₹11,309 mn (+2.2% QoQ, -3.8% YoY)
FY26 Billable Transactions
174.9 bn (+12.2% YoY)
Q4 FY26 Billable Transactions
45.1 bn (flat QoQ, +11.4% YoY)
Sustained Revenue Momentum
Management noted sustained Q3 FY26 revenue momentum into Q4 FY26.
Domestic Market Focus
Strategic focus on domestic markets, primarily India, is driving revenue growth.
Margin Improvement Strategy
Focus on retention of higher margin traffic from existing customers and enhanced routing strategy are key to gross profit margins.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Revenue Growth (YoY) | -3.7% in FY26 | Reversal of YoY decline, sustained QoQ growth. |
| Gross Profit Margin | 22.9% in FY26 | Continued expansion from strategic focus on higher-margin traffic. |
| Adj. EBITDA Margin | 11.9% in FY26 | Stability or improvement, managing operating cost increases. |
| Days Sales Outstanding (DSO) | 64 days in FY26 | Maintenance of improved working capital efficiency. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
37Bearishfull bear SMA stack · SMA20 -8.6% / mo · MACD +
Technical chart
ROUTEdaily · 1Y · AUTO+4.6%Daily technical trend read
Bearish setupTrend is weak — long-term trend down. RSI 42.
- Price < SMA20 < SMA50 < SMA200 — full bearish stack.
- SMA20 falling (~9.4% over last month) — short-term momentum negative.
- RSI(14) at 42 — falling, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- 44% off 52W high · 22% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 80 · DEEP VALUE · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 80 · DEEP VALUE · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
DEEP VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 17.9%.
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 71.7%.
Main drags
- Quality is weaker at 4/20; verify the latest quarterly trend.
- Growth is weaker at 20/25; verify the latest quarterly trend.
- Valuation is weaker at 26/30; verify the latest quarterly trend.
Telecom valuation: EV/EBITDA against ARPU, debt, and capex
Telecom needs enterprise-value and cash-flow framing because leverage is structurally important.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 94th percentile of the scored universe and 96th percentile within Telecom. No major sub-score weakness stands out.
High Trust Lite: Promoter holding is 74.9%. Key concern: 1 of the latest 4 quarters had PAT decline worse than 25% YoY.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Telecom: 96th pctile, median 66 · Micro: 90th pctile, median 73
99 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 74.9%.
- ▸Promoter pledge is zero.
- ▸FCF yield is 17.9%.
- ▸6 years of positive FCF.
Trust risks
- ▸1 of the latest 4 quarters had PAT decline worse than 25% YoY.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 8.93
- P/B
- 1.14
- EV/EBITDA
- 5.19
- Market Cap
- 3160.00Cr
Profitability
- ROE
- 12.60%
- ROCE
- 17.40%
- ROA
- 7.56%
- Dividend Y
- 2.19%
Growth (CAGR)
- Revenue 5Y
- 26.00%
- EPS 5Y
- 20.00%
- Revenue 3Y
- 7.00%
- EPS 3Y
- -12.93%
Balance Sheet
- Debt/Equity
- 0.02
- Interest Coverage
- 87.33×
- Altman Z
- 5.61
- Book Value
- 440.00
Cash Flow
- FCF Yield
- 17.88%
- FCF Positive Y
- 6/5
- OCF
- 581.00 Cr
- EPS TTM
- 39.43
Shareholding
- Promoter Hold
- 74.85%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 19%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
Business-comparable names in Telecom, ranked by similarity
Peers
Business-comparable peers in Telecom — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.