Shares of cloud communication services provider Route Mobile fell nearly 5 percent on Friday, July 18, after the company reported a significant drop in its June 2025 quarter results. The stock declined to an intraday low of ₹998 following a disappointing 32.23 percent year-on-year fall in net profit to ₹53.21 crore, compared to ₹78.52 crore in the year-ago quarter.
The earnings report underscored a challenging environment for the company, marked by subdued demand, international headwinds, and strategic exits from low-margin customer accounts. Revenue for the quarter came in at ₹1,050.8 crore, down 10.6 percent on a sequential basis and 4.8 percent year-on-year. The weak topline was primarily attributed to a slowdown in international markets and the company’s conscious decision to discontinue unprofitable contracts.
Operating performance also took a hit. The EBITDA margin narrowed to 8.9 percent from 10.4 percent in the March 2025 quarter, reflecting cost pressures and lower operating leverage. Profit after tax also slipped 6 percent quarter-on-quarter.
Adding to investor concerns was a key management change announced alongside the earnings. CEO Gautam Badalia resigned from his role, effective July 17, 2025. The Board has re-designated Rajdipkumar Gupta, co-founder and former Managing Director, as the new CEO, effective July 18. The leadership reshuffle comes at a crucial juncture as the company attempts to navigate through volatile macroeconomic conditions and evolving client behavior.
Looking ahead, Route Mobile said it is taking steps to recalibrate its growth strategy. With a sharpened focus on cost optimisation and technology-driven efficiency, the company plans to deploy AI-powered automation to streamline operations and improve margins. Management acknowledged that increased caution among enterprise customers, particularly in global markets, continues to affect deal cycles and revenue visibility.
Stock Performance Paints a Bleak Picture
The stock has significantly underperformed in recent months. Route Mobile is now more than 46 percent off its 52-week high of ₹1,866.75, which it had touched in July 2024. It is, however, trading above its 52-week low of ₹863.15 hit in April 2025.
Over the past year, the stock has eroded nearly 45 percent of investor wealth. In July alone, it has slipped over 6 percent, following a short-lived 8 percent rebound in June. The downtrend has been persistent, with the stock falling 0.2 percent in May, rising 2 percent in April, and registering steep losses of 5 percent in March, 18 percent in February, and 14 percent in January.
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