Penny Stock Under Rs 15: Telecom AI Firm Secures Multi-Million Deal With European Telecom Giant; The Renewed Agreement, Valued At Approximately Rs 55 Crore (GBP 4.96 Million)

The company is currently trading at a price of Rs 12.51 with a market capitalisation of Rs 705.17 crore.

Subex Limited, a leading telecom AI company, has announced a significant extension of its strategic partnership with a Tier 1 European Telecommunications Operator. This multi-year renewal underscores the operator's confidence in Subex's capabilities in delivering world-class services and innovation. The renewed agreement, valued at approximately GBP 4.96 million, extends the existing relationship for an additional three years. It focuses on driving digital transformation and supporting the operator's long-term growth objectives. Subex will continue to provide robust solutions across Business Assurance, Fraud Management, and Partner Settlement, enhancing operational resilience and safeguarding revenues.

Nisha Dutt, MD & CEO of Subex, stated, "The renewal of our long-standing partnership with this Tier-1 European Telecom Operator marks a significant milestone in our shared journey. Built on a strong foundation of trust, performance, and aligned vision, this relationship continues to stand as a testament to what strategic collaboration can achieve." The collaboration aims to empower communities and businesses through secure, reliable, and intelligent connectivity, reinforcing both companies' commitment to advancing digital experiences.

Subex Limited, founded in 1992, is a leading software product company specialising in Digital Trust, focusing on privacy, security, risk mitigation, and data confidence, primarily in the telecommunications sector. The company serves approximately 75 per cent of the world's top 50 telecom operators, providing solutions that enhance customer experience and optimise enterprise operations. Subex's product portfolio includes Business Assurance, Network Analytics, Fraud and Security Management, and AI Services. The company is transitioning to a next-generation stack, integrating AI and generative AI capabilities into its Hypersense platform to meet future demands.

Subex's revenue is diversified across managed services, support services, implementation, and license sales, with a significant geographical presence in EMEA, APAC, and the Americas. With over 300 global installations and a high customer retention rate, Subex continues to expand its focus beyond traditional telecom services, venturing into IoT security and 5G network management. The company operates with zero promoter holding and recently received RBI approval to explore account aggregator services.

In the Quarterly Results of December 2024, the company reported a revenue of Rs 72.69 crore, reflecting a YoY decline of 11.16 per cent compared to Rs 81.82 crore in December 2023. The operating profit stood at Rs 2.50 crore, marking a 331.03 per cent increase from Rs 0.58 crore in the same quarter last year. The profit after tax (PAT) stood at a loss of Rs 3.25 crore, improving by 33.54 per cent from a loss of Rs 4.89 crore in December 2023.

In FY24, the company posted a revenue of Rs 309.72 crore, registering a growth of 11.13 per cent compared to Rs 278.69 crore in FY23. The net profit for the year stood at a loss of Rs 191.73 crore, widening by 274.40 per cent from a loss of Rs 51.21 crore in the previous financial year.

The company is currently trading at a price of Rs 12.51 with a market capitalisation of Rs 705.17 crore.

Disclaimer: The article is for informational purposes only and not investment advice.