1. At a Glance
Route Mobile is a cloud communications player that once wore the crown in India’s CPaaS (Communication Platform as a Service) kingdom. But ever since its 2020 IPO and the subsequent takeover by Belgium’s Proximus Group, it’s been more like Route Confused. Profits dipped in FY25, margins shrank, and the only thing increasing is boardroom musical chairs.
2. Introduction with Hook
Remember when Route Mobile IPO’d in 2020 and doubled in weeks? Yeah, those were the good times. Fast forward to 2025 and this ₹6,200 Cr midcap is trying to navigate global integration, margin compression, and a -45% 1-year stock performance. Oh, and the new Chairman is Belgian. From Mumbai to Brussels in 5 years. Let’s decode this Cloud chaos.
3. WTF Do They Even Do? (Business Model)
Route Mobile = India’s OG cloud communication gateway for:
- A2P Messaging: Sends you those annoying OTPs from Swiggy, Amazon, and IRCTC.
- Omnichannel CPaaS: Handles SMS, email, voice, RCS, WhatsApp.
- SMS Firewall + Analytics: Helps telcos monetize grey routes.
- TruSense Digital Identity Suite: New product to enable frictionless verification.
- BPO Services: Client support, booking, tech support — less sexy, but pays bills.
🧠 Clients include OTT giants, MNOs, banks, airlines, e-commerce firms, and governments.
4. Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | 3,569 | 4,023 | 4,576 |
| EBITDA (₹ Cr) | 445 | 514 | 528 |
| Net Profit (₹ Cr) | 333 | 389 | 334 |
| OPM % | 12% | 13% | 12% |
| ROE | 17% | 15% | 14.5% |
| EPS (₹) | 52.4 | 59.7 | 50.6 |
😬 FY25: Margins stayed flat, PAT dropped, and ROE fell. The “scale game” isn’t scaling profits anymore.
5. Valuation – Is It Cheap, Meh, or Crack?
| Metric | Value |
|---|---|
| CMP | ₹990 |
| P/E (TTM) | 18.8x |
| P/B | 2.56x |
| Dividend Yield | 1.1% |
📉 Fair Value Range (EduCalc™):
- Base Case (15x EPS): ₹760
- Bull Case (22x EPS): ₹1,110
👀 Current price is closer to the bull case — not exactly screaming cheap given profit degrowth.
6. What’s Cooking – News, Triggers, Drama
- 🛬 May 2024: Acquired by Proximus Group (Belgium) — part of Proximus Global alongside BICS and Telesign.
- 🧠 New Chairman + CEO (Dec ’24 – Apr ’25): Frequent leadership changes post-acquisition.
- 🛡️ AI-powered Spam Blocker Launched (Apr ’25): But who’s blocking investor pain?
- 🤝 Partnerships with Nokia, MRT Jakarta, and global governments: Still going global.
- 🚨 ₹11 Cr CGST demand (Jan ’25): GST officers be like “Tumhara invoice kaha hai bro?”
7. Balance Sheet – How Much Debt, How Many Dreams?
| FY25 Snapshot | ₹ Cr |
|---|---|
| Equity + Reserves | 2,432 |
| Borrowings | 468 |
| Cash & Equivalents | ~300 |
| Net Debt | ~₹170 Cr |
| D/E Ratio | 0.19x |
💪 Clean balance sheet. Despite international ambition, they haven’t gone debt-crazy.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | FCF | CFI |
|---|---|---|---|
| FY24 | -₹98 Cr | -₹180 Cr | -₹2 Cr |
| FY25 | ₹602 Cr | ~₹500 Cr | -₹260 Cr |
🤑 FY25 finally saw massive operating cash flows after a disastrous FY24. But a big chunk went into tech, infra, and integration. So FCF is volatile.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 17.7% |
| ROE | 14.5% |
| OPM | 12% |
| EPS Growth | -15% YoY |
| Cash Conversion Cycle | 74 Days |
⏳ Working capital stretch is visible. Also, EPS dip + margin flatlining = not-so-hot combo.
10. P&L Breakdown – Show Me the Money
- Revenue CAGR (5Y): 37% ✅
- Profit CAGR (5Y): 36% ✅
- FY25 Sales: ₹4,576 Cr
- FY25 EBITDA: ₹528 Cr
- FY25 PAT: ₹334 Cr
- FY25 EPS: ₹50.6
- Dividend Payout: 22%
📉 However, FY25 saw deceleration in topline and net profit for the first time in years.
11. Peer Comparison – Who Else in the Game?
| Company | CMP | P/E | ROE | OPM | Sales (₹ Cr) | PAT Growth |
|---|---|---|---|---|---|---|
| Railtel | ₹410 | 42x | 16% | 15% | ₹3,478 | +55% YoY |
| Route Mobile | ₹990 | 19x | 14.5% | 12% | ₹4,576 | -15% YoY |
| Tata Comm | ₹1,940 | 29x | 20% | 23% | ₹20,700 | +10% YoY |
| Tanla Platforms | ₹920 | 20x | 21% | 28% | ₹3,440 | +22% YoY |
📊 Route is no longer the top performer on growth, margins, or returns.
12. Miscellaneous – Shareholding, Promoters
| Category | Sep’23 | Mar’24 | Jun’24 | Mar’25 |
|---|---|---|---|---|
| Promoters | 58% | 83.1% | 74.9% | 74.9% |
| FIIs | 21.6% | 5.75% | 6.65% | 4.45% |
| DIIs | 5.99% | 1.04% | 6.14% | 8.12% |
| Public | 14.3% | 10.1% | 12.29% | 12.56% |
📦 After Proximus takeover, promoter stake jumped, but FII holding fell off a cliff.
13. EduInvesting Verdict™
Route Mobile used to be the starboy of Indian CPaaS — now it’s caught in a European corporate soup. Solid cash flows, clean balance sheet, and global deals sound nice. But stagnant margins, leadership churn, and declining investor interest (especially FIIs) say otherwise.
📉 At ~19x P/E with profit falling — this isn’t bargain territory.
🚦Verdict: “Cloud ke naam pe smoke?”
✍️ Written by Prashant | 📅 July 9, 2025
Tags: Route Mobile, CPaaS India, Proximus acquisition, Route Mobile valuation, Route Mobile FY25 results, Route Mobile fair value, EduInvesting stock article
