Subex Ltd (BOM:532348) Q3 2026 Earnings Call Highlights: Strategic Wins and AI Investments …

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Wed, February 11, 2026 at 10:00 PM GMT+9 3 min read

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This article first appeared on GuruFocus.

Release Date: February 11, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Subex Ltd (BOM:532348) reported a 2.7% sequential top-line growth with a normalized EBITDA margin of 13.1% and a PAT margin of 10.8%.

The company successfully onboarded two independent directors, aligning with shareholder expectations, which is expected to add significant value.

Subex Ltd (BOM:532348) achieved a notable win in fraud management with a leading European operator, strengthening its market footprint.

The company has successfully commercialized its fraud management product, Fraud Zap, within a year, reflecting increased agility and execution.

Subex Ltd (BOM:532348) is prioritizing AI investments, leading to systematic conversion of POCs into production deployments, with European customers funding proof of concept for Gen AI agents.

Negative Points

Revenue conversion from traditional RA and FM products is delayed, typically taking three quarters post-deal announcement.

Geopolitical uncertainties, including exposure to countries like Iran and Venezuela, pose challenges, although the exposure is controlled.

The company has not yet recovered any lost revenue from previous contracts, despite taking legal recourse.

Subex Ltd (BOM:532348) faces challenges in expanding into markets like Korea and Japan due to language constraints and competition.

The company has not provided specific revenue guidance for its new product, Fraud Zap, and is still assessing its market potential.

Q & A Highlights

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Q: Are we going to see the conversion of recent deal wins into revenue starting from Q4, or will it begin in Q1? Also, how are geopolitical developments affecting market opportunities? A: (CEO) Revenue conversion from recent deals typically occurs in two phases. For traditional products, revenue is realized about three quarters after the deal due to implementation timelines. However, AI-led implementations like FraudSAP see more immediate revenue impact, sometimes within the same quarter. Geopolitically, while there are challenges in certain regions, overall exposure is controlled, and we are seeing positive momentum in markets like the US and Europe.

Q: What is your revenue estimate for FraudSAP by 2030, considering the market potential? A: (CEO) It’s early to provide a precise estimate, but the device fraud market is substantial, around $4.2 billion. We are focusing on building a pipeline and understanding conversion rates. Our initial goal is to aggressively market FraudSAP and assess its performance over the next few quarters.

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Q: Could you elaborate on the revenue bifurcation between RA and FM, and provide an update on lost revenue recovery? A: (CEO) Many of our deals are integrated, combining RA and FM, which is why we report them together. Regarding lost revenue recovery, we are pursuing legal recourse but have not yet achieved any meaningful recovery.

Q: How is the investment in the UAE subsidiary contributing to revenues, and what is the status of the Sectorio contract closure? A: (CFO) The UAE subsidiary recapitalization supports ongoing business and strengthens the balance sheet. It will take 4 to 5 quarters for significant revenue contribution. The Sectorio contract is nearly closed, with final legal documents being exchanged.

Q: What are the other growth initiatives apart from new product development? Are you expanding into new regions? A: (CEO) Besides new products, we are focusing on managed services (MS) and have set up an innovation lab for future growth. We are not expanding into new regions as we already have a presence in key markets, but we are differentiating strategies based on regional needs.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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