ROUTE MOBILE LTD (NSE: ROUTE) Q3 2026 Earnings Call dated Feb. 10, 2026
Corporate Participants:
Rajdipkumar Gupta — Managing Director
Tushar Agnihotri — Chief Executive Officer
Vinay Binyala — Chief Strategy Officer & Investor Relations Officer
Rajeshwar Singh Gill — Chief Financial Officer
Analysts:
Jyoti Singh — Analyst
Amit Chandra — Analyst
Kevin Gandhi — Analyst
Jimith — Analyst
Venkatesh S — Analyst
Manish — Analyst
Presentation:
operator
Good evening ladies and gentlemen. I’m Mike, the moderator for this conference. Welcome to the conference call of Root Mobile Limited arranged by Concept Investor Relations to discuss its Q3 and 9M FY26 results. We have with us today Mr. Rajdeep Kumar Gupta, Managing Director, Mr. Tushar Ragni Otri, Chief Executive Officer, Mr. Vinay Binyala, Chief Strategy Officer and Investor relations officer and Mr.
Raj Gill Group Chief Financial Officer. At this moment all participants are in the listen only mode. Later we will conduct a question and answer session. At that time, if you have any question, please press star and one on your telephone keypad. Before we begin, I would like to remind you that some of the statements made in today’s earnings call may be forward looking in nature and may involve certain risks and uncertainties. Kindly refer to slide number two of the presentation for the detailed disclaimer. Please note that this conference is being recorded. I now hand the conference over to Mr. Rajdeep Kumar Gupta. Thank you. And over to you.
Rajdipkumar Gupta — Managing Director
Thanks Mike. Good evening everyone and thank you for joining us today. At the outset, I’m pleased to announce an important leadership evolution at Root Mobile that will strengthen our management team and sharpen our execution as we enter the next phase of sustainable profitable growth. After successfully steering the company through its growth journey as MD and CEO, I will be transitioning from a CEO role with Tushar Agnihotri taking up the CEO position at Root Mobile. Tushar brings extensive CPAAS industry expertise complemented by the strong track record in sales and operations leadership. Tulsar will drive overall company operations and accelerate our strategic initiatives for growth and profitability while I continue to lead the strategic direction of the business.
Working closely together, we will translate Route Mobile and Proximal Group vision into tangible enduring outcomes for Route Mobile bringing greater focus and depth to our leadership team. Coming to the performance of Q3 2526 the past quarter has been about resilience and disciplined execution amid our business mix transformation. While reported revenue face pressure due to slight decline in certain low margin international messaging flows, our core franchise remains robust with clear benefit emerging from our strategic focus on higher quality higher margin revenue streams. What gives me particular confidence in is how our strategy is materializing through concrete customer deployment.
In Q3 we successfully deployed WhatsApp based last mile logistics solution for two of the world’s largest retail chains, enabling sophisticated delivery, orchestration and real time customer communication at massive scale. We also launched an automated admission process chatbot on WhatsApp for one of India’s leading educational institutions, streamlining enrollment for thousands of prospective students. Additionally, we implemented a comprehensive digital ticketing and customer notification system for a major state owned water waste company in India. These market deployments underscore the versatility and enterprise grade scalability of our WhatsApp and omnichannel platform capabilities. On the architect solution front, we are making tangible progress.
Our firewall deployment with Claro in Latin America has now advanced to the final testing and acceptance phase, positioning us for a similar large scale deployment with other MNO group with operation across multiple geographies. Overall, the business trajectory continues to be positive, superior unit economics, deepening enterprise relationship across diverse verticals, and a significantly strengthened pipeline spanning multiple geographies and use cases. We are continuously investing in the platform capabilities, strategic partnership and talent that will power RuPavile’s next growth phase while upholding our commitment to profitable, sustainable value creation for all our stakeholders. With that, I will hand it over to Tushar to introduce himself and then to Vinay to walk you through the key business developments for the quarter, followed by Raj’s detailed financial review. Over to you Tushar.
Tushar Agnihotri — Chief Executive Officer
Thank you so much. Ratheep Hi everyone, this is Tushar 3. As most of you are aware that I have assumed the position of CEO Group Combined from February. A few words about myself. I joined root Mobile in 2016. I completed nine and a half years with Root Mobile and largely in sales. I was initially responsible for building the domestic market for India, which we did successfully and took the same success to multiple other markets like Bangladesh, Sri Lanka, Indonesia and others. I continue to perform my safe duties alongside the position which has been assigned to me of CEO.
Before joining Root Mobile I worked with three telcos. I used to work with Reliance Geo. Before joining Rootmobile, I’ve worked with TA Tele Services and Reliance Communication. Overall, I bring 30 plus years of sales and operations experience to the table and I continue to contribute the way I’ve been over the years. Thank you so much. This is all from me and I hand it over to Vinay.
Vinay Binyala — Chief Strategy Officer & Investor Relations Officer
Thank you Dushar. Good evening everyone and I hope you’re all doing well. Thank you all for joining us today. We uploaded our quarterly earnings presentation last night and I hope you had a chance to look at it. Let me start by walking you through the highlights of our third quarter performance. Q3 has been a quarter of strategic transformation for Route Mobile and I want to be transparent about the shifts that we are seeing in our business composition and what they mean for our future trajectory. On the financial front, let me address the top line performance directly.
Revenue from operations has remained broadly flat sequentially or quarter on quarter, while on a year on year basis we witnessed a decline. However, this headline number tells only part of our story and I want to provide you with the complete context behind these movements. The primary driver of the year over year revenue decline has been lower volumes in certain low margin international long distance business, the ILD business. While these revenue streams contributed to top line volumes, we have seen some enterprises progressively reduce their A2B SMS usage as they experiment with alternative digital communication channels and in a few cases competitive pricing dynamics have made parts of this business less value accretive for us.
What’s particularly encouraging is that this decline in ILD revenue has been partially offset by growth in higher margin domestic business in India and also in other key regions. We are seeing robust traction in our core domestic markets where our platform capabilities, enterprise customer relationships and regulatory positioning provide us with sustainable competitive advantages. This shift represents exactly the kind of business mix transformation we’ve been working towards moving away from volume driven low margin revenue towards value driven high margin revenue streams. Now let me turn to what I believe is the most significant positive development for this quarter, our gross profit margin expansion.
Despite the flat revenue, our gross profit margin expanded significantly this quarter. Importantly, this margin expansion has translated into absolute gross profit growth both quarter on quarter and year on year. This is a direct result of the change in business mix. I just described the replacement of some low margin business with higher margin domestic and regional business. It demonstrates that our focus on quality of revenue over quantity of revenue is delivering tangible results. Another factor contributing to part of the margin expansion is the seasonal expansion of gross profit margins. In some regional markets such as Colombia.
Q3 is typically the best quarter in terms of gross profit margins for us in this region. From an operational standpoint, volumes have remained relatively flat quarter on quarter. This stability in volumes combined with margin expansion reinforces the fact that we are extracting better value from each transaction and each customer relationship we are working towards optimizing for unit economics. I want to be transparent about our cost structure evolution this quarter as well. The entire expansion in gross profit in absolute terms has not flown down to ebitda. This is primarily due to two factors. First, an increase in the operating expenses that support our product development and go to market initiatives and second, salary increments that have led to incremental workforce operating expenses year on year.
These workforce investments reflect our commitment to retaining top talent in an increasingly competitive market for technology and sales professionals. Our people continue to be the most valuable asset of the organization and the investments in the workforce are necessary to maintain the quality and stability of our team as we execute our transformation strategy. While they impact EBITDA in the near term, we view these as essential investments in our long term capability building. Also, shared management services between Root Mobile and Proximus Global have marginally impacted EBITDA negatively. Raj will run through the details on the same as he talks about the numbers in more detail.
I am pleased to report that our profit after tax margins have remained steady. This demonstrates our ability to maintain bottom line profitability even as we make necessary investments in the business and navigate significant changes in our revenue composition. Beyond the financial metrics, we continue to make strong progress on our strategic initiatives that we have discussed over the past few quarters. Our new product portfolio continues to gain traction in the market. Rajdeep highlighted a few key customers that we have onboarded in the past quarter. We are seeing increasing adoption of our Omnichannel communication solutions, RCS messaging capabilities and WhatsApp business API integrations.
These products command premium business sorry premium pricing as compared to our traditional SMS based services and they represent the future growth drivers of our business. We have tracked 14.5% buy on y growth in revenue from new products in the nine months ended December 31, 2025 versus nine months ended December 31, 2024. Despite the slight decline in revenue from new products in Q3 versus Q2 2526 which is largely attributable to a situation with a specific large customer, we continue to build a strong pipeline to grow this business segment significantly. Our partnership ecosystem continues to deepen the relationships we’ve built with global system integrators and technology partners open doors to enterprise customers who require sophisticated integrated communication solutions.
These partnerships allow us to participate in larger, more strategic deals with better margin profiles. In Q3 we have expanded our customer pipeline in partnership with Infosys and Tech Mahindra on the network API front, our engagement with Conera initiative within Proximus Global continues to evolve. We are positioning ourselves at the forefront of emerging telecom API ecosystem which we believe will be a significant growth area. As enterprises increasingly seek to leverage telecom driven data solutions to secure, simplify and enhance customer engagement and experience. Realizing with major MNOs with whom we have long standing relationships in India and other emerging markets to drive the network API development and go to market initiatives to summarize Q3 2526 we’ve executed a strategic business mix transformation replacing certain low margin international business with higher margin domestic and regional business.
We have delivered significant gross margin expansion and maintained steady pat margins despite increasing operating investments and we continue to advance our strategic initiatives across new products, partnerships and emerging technology platforms. With that, I will now hand it over to Raj to walk you through the detailed financial performance. Over to you Raj.
Rajeshwar Singh Gill — Chief Financial Officer
Thank you Vinay and good evening everybody. I’ll summarize our financial and operating performance during the quarter ending December 25th before opening the call to Q and A as described by Raj, Dheek and Vinay, the standout metric has been our gross profit margin performance which has grown in absolute and on a percentage basis. This is testament to our advantaged mix of markets and customer base along with a keen focus on routing strategy. Our Q3 revenue from operations was 1 million 171 million INR which is lower by 6.5% year on year and 1.1% sequentially. This is largely due to the volumes in certain low margin international long distance business and structural SMS market impacts, but this is partially offset by growth in non SMS products and particularly strong growth in Massivian.
In Q3 we reported a gross profit of 2.712 million INR representing a 8.6% increase year over year and a 9.8% growth compared to the previous quarter. This is due to gross margin expansion which I’ll come on to next. Gross profit margin for the quarter stood at 24.5%, a 340 basis point improvement over last year, sequentially higher than the 22.1% achieved in the previous quarter. This is one of our highest quarterly margin performance. This upward trend reflects our strategic focus on optimizing customer mix and onboarding high margin accounts enhanced routing strategies, reinforcing our commitment to profitable growth and long term value creation.
On a reported basis we constrained opex growth to plus 4% year on year mainly due to non recurrence of prior year long term incentive plans and foreign exchange movements. However, on a like for like adjusted basis, opex is up 10% due to trade receivables, write offs and salary increments, but again partially offset by cost savings from lower headcount. Adjusted EBITDA for Q3 increased by 3.5% to 1,429 million and increased by 7.2% versus the previous quarter due to gross margin performance described earlier. This all contributes to an adjusted EBITDA margin of 12.9% which is higher by 120 basis points versus prior year and sequentially higher than the 11.9% seen in the previous quarter.
Adjusted profit after tax was £1,026 million, which is up 2.2 sequentially and higher by plus 20% year on year driven by EBITDA flow through stable foreign exchange movements and lower finance cost as a result of prior external debt that has been paid off. I will now hand over to the moderator for the Q and A section.
Questions and Answers:
operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on your touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. We have the first question online of Jyoti Singh from Aryan Capital. Please go ahead.
Jyoti Singh
Yeah, thank you for the opportunity. So I wanted wanted to understand few things on the route mobile side. So given Q3 revenue that was largely soft but the margin recovery that we have seen and should we expect 26 to be more of a we are targeting for the margin or more of a growth led recovery and another on the transaction side. So our belief around 129.5 billion as per nine month which is 11% up but revenue only up 3.6%. So how should we think about pricing per transaction going forward? And third, what level of net new client addition and wallet share expansion is required to return to maintain revenue growth? These three point wanted to understand. Thank you.
Vinay Binyala
Sure, sure. So Jyoti, let me take that. So you know first let me address the easy one on the volume versus revenue growth. So as we mentioned during the commentary and you know even the last quarter we had seen certain shift of business from IIT to domestic and the price points for India ILD vs India domestic is significant. So you know, to replace a certain volume of ild, I mean sorry, certain value of ILD business, the volumes required on domestic are significantly higher. So you’ll see you know, larger volumes coming in at a slight, at a lower price point.
But in a lot of cases, because that is domestic enterprise business, we typically gain higher margins on that business as well. So that kind of explains the volume revenue ratio in terms of whether, how would this be sustainable and what is our focus. So obviously our essential goal is to keep growing the margins in absolute terms and because it generates ROI for the company, that is the main objective and generate significant cash flows. So that has always been the focus of the company. And plus, you know, if we are able to maintain the OPEX at the levels that we are and expand the gross profit margin in absolute terms, we will see bit by expansion.
So the idea is moving forward if ILD business starts reviving and even if we get a larger customer which is marginally lower gross profit as compared to the portfolio, if it makes strategic sense, if it is a sustainable business, we would not shy away from taking it unless it is absolutely impossible to service that customer without. And you know, if it so sort of, to put it briefly, if it tends to be a loss making account, obviously we would want to stay away from it. But if it makes reasonable profit and if it is sustainable at certain levels, we would definitely want to onboard that business for the operating leverage that we can generate out of it in terms of the net new client addition.
So the we are, we are witnessing customer onboarding, we are adding new customers as we mentioned, even on the new customers we have. Sorry, even on the new products we have added a few reputed brands in the past quarter and you know, even in certain areas like transport and ticketing, we have deployed our solutions in multiple geographies now. So we are witnessing customer onboarding in terms of reviving to double digit growth rates. You know, it’s a little early to give guidance on that, but we will certainly come back to the investors very soon on that point.
So we have certain strategic sessions planned out over this month and early part of March. So you will soon be able to come back with specific, you know, defined guidance in terms of how the business is going to scale up from here. I hope that addresses your queries or any other.
Rajdipkumar Gupta
Jyoti. Just to add to Vinay’s answer, I think probably in coming quarters we will always going to focus on growth for sure. Along with that it is also very important to focus more on quality customer and the quantity customer because for us it is very critical to maintain our EBIT margin along with the gp. So we are working towards adding new customers domestically and internationally as well. So when you say ILD business, but apart from ielts, I think our global international business is also growing so we are focusing more on a customer who are looking out for a solution and they believe in US product and I think that’s the kind of story which we want to build and I think quantity against quality is what we want to focus on quality customers now.
Jyoti Singh
Sure. And so if we can guide on the margin expansion side and revenue growth side.
Rajdipkumar Gupta
As far as the guidance is concerned, as Vinay has Mentioned we will come up with some numbers soon but right now we may not able to give any guidance. But what you can understand from the last two quarters if you see are some of the changes we have made in our customer mix and we let go certain customer deliberately to make sure they are not hitting our gross profit and EBIT margin. And probably in coming quarters we may come up with the guidance. But right now I might not be able to give you the guidance.
Jyoti Singh
Okay, thank you sir. And just a last question like I’m getting a lot of buzz around the listing of Root Mobile so just wanted to confirm nothing from our side.
Rajdipkumar Gupta
Right.
Jyoti Singh
Like the listing of mobile.
Rajdipkumar Gupta
See that’s a totally complete rumors and there is no as a proximus global, we have no intention to delist Root Mobile. Root Mobile will continue as a listed company and we are very much committed to our minority shareholders. And what I can tell you right now is there is no intention of delisting Root Mobile in future as well.
Jyoti Singh
Thank you so much for clarification.
operator
Thank you. We have the next question line of Amit Chandra from HDFC Securities. Please go ahead.
Amit Chandra
Thanks for the opportunity. So my first question is in terms of the focus that we’re having for the margin expansion and not focusing on the lower margin business, so where we are in that journey, so what proportion of our business still is lower margin and where we are in that journey in the sense that how many more quarters we will take to restructure and this restructuring in terms of the mix is largely technology led, geography led or client led. So that is the first question. Maybe I can ask the second one after questions.
Vinay Binyala
Sure. So Amit, I can start and then you can probably add in. So you know the change in margin that we are seeing is primarily two factors. One is in India we are seeing some ILD business, slight decline in the ILD business in India which is getting repeated to some extent with domestic India business and also in the rest of the world, domestic customers in the UAE and Colombia where margins are relatively higher, we have onboard customers in those markets as well. So it’s a mix of both in a specific market, it’s a mix of inbound traffic, whether it is domestic or international, and also in terms of geographic clicks, we are seeing domestic customer growth in other markets as well.
In terms of your question regarding how long will this continue? So I mean in the last few months we have not seen significant trends. It’s a mix of certain aggregators who are bringing in certain international volumes into our platform where we’ve seen Some dip in terms of enterprise customers. We are not aggressively taking off enterprise customers on the ILD piece because there we are still retaining some of our customers and we believe at these levels the margin is fairly healthy. And as I mentioned earlier if you are able to get large customers, reputed customers with sustainable business, we would still consider the business even if it is marginally below the portfolio gross profit level.
So it’s a mix of, you know, how do we want to build a sustainable scalable business versus do we want to purely focus on margin expansion?
Amit Chandra
Okay.
Rajdipkumar Gupta
mit, as I think I have already, I think in last earning calls also I have mentioned there are two verticals we really want to focus like telco and enterprise segment. So we are also putting lots of effort and energy towards telco business where we really believe that firewall business along with the MAP server cfas in a box which is more on a product oriented solution for operators is something what we are really focusing on. And with the Claro deal which we have already closed going live in March, you will see the growth in our revenue because of that as well.
And there are many few more larger deal we are closing in coming months down the line where firewall deals are very lucrative in terms of margin as well. So I think enterprise and telco are two separate business, you know like and this is exactly how we are trying to focus on our product roadmap as well. You know like we have separated our teams so one team focusing completely on telco side of the business, one team focusing on enterprise side of the business. And in coming quarters I think the revenue growth is definitely we will work on along with the higher margin. As Vinay mentioned, the current margins are also healthy and we will try to improve more on that as well what we have achieved in previous quarter.
Amit Chandra
Okay so thanks for the clarification. And secondly more broader question on the ILD piece. Obviously we are having a higher proportion of revenues from the ILD stream and as you mentioned in the last calls also that this stream has almost stabilized and now. But how do you see the terminal risk to this business wherein most of the larger enterprise customers globally are shifting to alternate channels because of the higher IoT prices and like most of the larger ones they have already shifted and the existing volumes which are there, what is the relevance in terms of the elasticiness of these volumes? Maybe from a more longer term perspective or we want to totally pivot from IELT to.
Rajdipkumar Gupta
So there is no, there is no impact completely on the ILD business. We also let go certain ILD business Which are very low margins. Okay. So it is something also you need to understand. We really focus on our margin and GP right now. And we also let go certain smaller customers who are aggregator who are too demanding and they were looking for the lower margin for I D traffic which we said no. And we let go those kind of traffic as well. What Vinay trying to highlight is there’s a direct enterprise coming and then even not little lower than our total actual gp we will entertain them.
But I think those aggregators were sending traffic to us for ILD traffic. We let those traffic go from our portfolio so that we are not entertaining those guys especially on ILD as well. So as far as the enterprise traffic is concerned, it is very much there in our platform right now. There are little bit decline by certain customers that they are moving from channel A to channel B. But definitely we are also in talks with those customers to use our channel other channel like RCS and WhatsApp in terms they are trying to explore these channels.
Amit Chandra
So obviously sir, the the question is in sync with what you’re saying. So the next growth driver is obviously the OTT channels which is WhatsApp, RCS and the platform that you talked about. So where you know we are in that journey, obviously the segment that we report in terms of new growth areas there we are not seeing, you know, that kind of growth which is getting reflected there. So how is your adoption there where we are in the journey, what kind of growth we can expect from the platform side.
Rajdipkumar Gupta
So if you see the nine month growth, it’s a 14% growth, nine month year on year comparison. If you see on the new product growth, okay, there are certain traffic we have seen in the previous quarter, it was just a starting of the festive season that has also let certain volume increase by certain customers OTT channel. But as a company, the platform wise I think we are very much there with all the capabilities required to serve any large enterprise customer whether it’s email, SMS or WhatsApp or RCS. So I don’t think there is any challenge on that side with the current pipeline which we have on the new product line Now Tushar coming and taking over as a CEO he has a definitely lots of inroads and insight about the India market and some of the neighboring market like Bangladesh and Sri Lanka and Philippines. And we believe Bangladesh market like Bangladesh and the Philippines are also going to contribute a lot on the these new channels for us.
Amit Chandra
Okay, and the last question, where we are in terms of the Vodafone deal that we Signed. What is the revenue contribution and are we above the MRC or the minimum revenue commitment that we had with Vodafone. So if you can give some light on that. And. Since we on, since we onboarded. Yeah, go ahead, go ahead. Yes. No, no. So at the time we onboarded we had very aggressive targets in terms of the revenue from that deal. So what changed and where we are currently?
Vinay Binyala
So as Amit, as I mentioned, we will always going to now focus more on margin growth and GP growth and we will probably try to avoid such deals in future. Our Vodafone deal is going to I think consumed by the end of March. And if there is any deal with Vodafone in future, we will have a two separate deal, one for the firewall, one for the sms. So it is not going to be merged as one combined deal. That’s what I can tell you. But if we do a firewall deal totally separate, then it is going to be 100% margin option for a firewall and SMS will be a different deal if we do with Vodafone.
But I can assure you one thing, in future, if we do any deal with vi, it will be a two separate deal, one for firewall, one for sms. But we will keep in mind that we will not going to dilute our gross profit margin because of that deal.
Vinay Binyala
And Amit, just to add to what Rahdi said on the previous deal, we don’t have any risk. So we are covered on that deal in terms of the commitment that we had. We are covered.
Amit Chandra
Okay. Okay sir, thank you and all the best.
Vinay Binyala
Thank you.
operator
Thank you. We have the next question on the line of Kevin Gandhi from CAB Grow Capital. Please go ahead.
Kevin Gandhi
Hello. Thanks sir for taking my question. I hope my voice is audible. Yes, again. Yeah, just wanted to know that even though the volumes are increasing, the revenue is quite on the decline on the ILD side. Just wanted to know what is the industry growth rate across the globe is that we are losing any market share or the total industry size of ILD is declining. And also just a second question about the VI deal. So what’s the total revenue potential of this total deal?
Rajdipkumar Gupta
Kevin, as we speak there is no new deal has been signed between VI and Rope Mobile as of now. That’s the only thing I can share with you as far as the revenue potential is concerned. Since there is no deal, we have no clarity about any revenue potential. We want to take the first question.
Vinay Binyala
Sure. So Kevin, just on vi, so it’s more of a supplier deal where we pay VI for using SMS on their network. So revenue comes from the enterprises service and with VI we have a deal where we have made certain commitments in terms of how much volume we will use on their network. So there’s no revenue from VI as such. It’s more of a usage of the VI network. In terms of your question regarding the ILD market size and our market share. So as we mentioned earlier, we continue to hold on to enterprises that we are servicing.
We have lost certain aggregator business which was either decline in the aggregator’s own volumes or in some cases, in a very few cases where there was some competitive dynamics. So what we believe and what we are seeing is it’s not really a decline in market share, it is a slight. It’s a situation where there is a slight shift in channels of communication and enterprises are experimenting with various things and whenever they are deciding on a particular way in which they want to work. So for example, there’s a very large global tech firm which decided to move from SMS to RCS and we are servicing them on RCS now.
So those kind of trends are happening where we are seeing certain shifts in volume which could be temporary, there might be some volumes which might be lost. But it’s not that we are losing market share and somebody’s taking away those customers from us. It’s more of a dynamic market situation right now. Okay, understood. Okay, so just a follow up question on your answer. So basically since ILD is such a big component of a revenue, even though the new product revenue trajectory is not taking over the ILD business, can we expect the ILD IIT realization to actually improve over time? Like we have seen some stability but do we expect the realization to again quite improve over time? So I think Kevin Rajdeep also touched upon this point earlier where you know, and also I mentioned that some of these enterprises are coming back to us when they decide on a particular channel.
So the way it works is, you know, if you need a partner who can support you on let’s say, for example RCS. Now for whatever reason, if a subscriber is not able to receive an RCS message because of the nature of handset or is not able to receive a WhatsApp message because of non availability of data connection, then you need a CPAAS partner who can trigger a fallback on sms. So you need a partner who can provide all channels of communication who can support you in multiple geographies. And that is where we score a strong point with such kind of large global enterprises.
So whenever there is ILD Business, you know, we are able to still garner it on the back of it. We also, you know, the vids which we refer to makes us fairly competitive in the market on such deals. So that is where, you know, we are able to play a very strong hand when it comes to ild. Okay, got it. Thank you.
operator
Thank you. We have the next question on the line of Jimmy from mk, please go ahead.
Jimith
Yeah, hi, am I audible?
Rajeshwar Singh Gill
Yes, we can hear you.
Jimith
Yeah. Okay, just a couple of questions. First is can you shed some light in terms of how the CPAs market size in India and across channels have evolved? Like how it is today versus how it was three years back. Just so you know, a broad color in terms of how it has evolved over the years. That’s the first part. The second one that I wanted to understand is what would be our new products revenue split between India and say outside India. So if you can share some details on that. And third is with respect to new products itself.
So new products or even got season OTT, our revenue has, you know, grown by around 11 in Q3 and that is around 8% of revenue, total revenue. And one of the peers we see has reported around 31% of revenue from OTT channels and that is over 50% growth in Q3 itself. So are we losing some sort of share? So is that reading correct or you know, if you can help us correct the, you know, reading that we can have from the data. Thanks. That’s the three questions that you want to ask.
Rajdipkumar Gupta
Let me start with the market and adoption. The digital adoption in various emerging countries are growing every single day as we speak. And we believe that tier 3, tier 4 cities will contribute more in coming days down the line for the growth of digital channel adoption. And that’s what the whole trend we can see right now. Digital communication. The digital transactions are growing every single day in a domestic market. So as we speak we are not just focused on one India market. India is a 1 market. Along with that we have a market like Bangladesh, Sri Lanka, we have Philippines, we have uae, Saudi Arabia, Colombia and Nigeria where we see the domestic market growth.
And I think that is definitely a high margin profile which we are maintaining overall. If you see the CPAs market, the volume growth, it is happening all across the globe right now. And that is the trend we see right now. There are little bit drop in our ILD business because this larger the hyperscaler, some of sometimes they want to try different channel and end of the day they are using root mobile channel only to take those, shift those traffic From SMS to CRCs or WhatsApp if you want to answer the second one.
Vinay Binyala
Yeah, so I think on the geography mix, Jimmy, we don’t publish it publicly but at this point in time largely there are three geographies where we are generating non SMS or new product revenue as we call it. It is largely in India. We have a small proportion in Colombia. But you know, if you compare it to the revenue in Colombia, it’s a reasonable size of business there and we have onboarded certain customers in the Middle East. So unfortunately I’m not able to give you exact split of revenue by the regions. But in terms of growth, except for the sequential dip, we are seeing growth across all these markets and the platform itself is fairly comparable to the competitors that you would be referring to in India and other markets as well.
So that is overall, I mean, unfortunately I can’t give you an exact split of the revenue by country. We figured out a way of how to share some insight on that. But at this point in time we need to just check if you know how sensitive it would be from a competitive point of view and then we can take a call on how we can share the first details with you and the investors.
Jimith
Thank you. And if you can just elaborate more on the third aspect which is the revenue split in terms of 42 and how it has grown for peer that we’re looking at. So is it some sort of market share shift that is happening or are we losing some market share? Any read through from your end?
Vinay Binyala
Sorry, I could not hear you well but I think you’re asking how is the OTD market share? I mean the OTD growth versus SMS growth and how are we playing in that market? Is that the question?
Rajdipkumar Gupta
No, I think, yeah, I think that’s a question Vinay. Just to let you know Zimit, the market share on ILD business is the largest in India as we speak. I think if I’m not wrong it’s over 50% and we maintain that there is a definitely drop from the hyperscaler and they’re using different channel and in that case also we are supporting those hyperscaler to use those new channels from our platform only.
Jimith
Great, thank you for the responses. Just if I could squeeze in two more questions. One is in terms of the gross margin expansion, so can we expect 24.5% which is the current quarter level to sustain for the next quarter or coming quarters as well or are we aspiring a specific level to look at in terms of the margin play? And second is. So just wanted to, you know understand that what specifically led to this leadership decision. So and even is the position of Rajdeep at proximus level intact or what’s the status there? Thanks. Those are the two final questions.
Rajdipkumar Gupta
So let me answer on the leadership and I think it’s a very very good decision made by the board as Tushar is in system for last 10 years. He’s one of the top performer sales person in the entire Rupavile story and he understands business very well. He understands domestic as well as a global business. His knowledge about business is very critical for us and I think he will definitely drive this growth story forward as we speak. As far as my role is concerned, it is definitely going to add value to root mobile if I’m working very closely with the proximal global team where I will make sure that we get more revenue coming to root mobile platform from Telesign and the Bix.
So this is definitely going to add advantage to root mobile in coming quarters if you see and as far as Pushar is concerned it’s the best choice from our side because we believe he has all ability to drive this business to the next growth.
Vinay Binyala
So Jimmy, coming to your question on the gross profit margin sustainability. So I think we also referred to it earlier on this call. So this quarter there were certain drivers which are, you know, which could be a little seasonal in nature. So for example Colombia gets the highest gross profit margin in the December quarter. So that had a marginal contribution to the gross profit margin expansion. Now to look at it, you know, the way we look at the future is this margin obviously is driven by mix of business. If ILD contribution is to increase and typically ILD business is large ticket.
So single customers could add up, you know, almost 1 to 2% of even in the best cases even higher than that of the total revenue if you’re able to onboard them successfully. The idea there is the percentage margin with such customers might be below the portfolio average but the absolute gross profit that they generate helps us get a lot of ROI on the business. So that is how we look at it. If we are able to get some large customers which may dilute the percentage margin but you will still see absolute gross profit expansion despite the margin dilution.
So that’s how we look at the business. We would not let go large sustainable opportunities. Even if the percentage margin portfolio is, you know, different from the portfolio. It could be a little dynamic to put it very briefly but it would not, you know, it would not be at the expense or you know, you would not want to see a gross profit, absolute degrowth in the business.
Jimith
Perfect, that helps. Thank you so much and best wishes to share for the new.
operator
Thank you. We have the next question on the line of Venkatesh S for an individual investor. Please go ahead.
Venkatesh S
Good evening sir. Am I audible?
operator
Yes.
Venkatesh S
Yes sir. Thanks for the opportunity. And.
operator
Mr. Venkatesh, can you hear us?
Venkatesh S
Yes sir. Can you able to hear me?
operator
Yes, please go ahead with your question.
Venkatesh S
Yeah, thank you. So I first of all congratulate Mr. Tushar for being appointed as new CEO for the company. Wishing you the best of luck. So I wanted to know, so during our acquisition by the Belgium based telecom operator BICS, so we were saying that Terry Sign generates 3,000 crores of yield traffic in India. And so currently I wanted to know how much of their PI is captured by Root mobile post acquisition.
Vinay Binyala
So we can, I mean Telesign. So I’ll just give you a little background of how we started working with Telesign. So after the transaction there was a analysis of how much traffic can Telesign send to Root mobile where obviously we could offer them the best cost price. And India was definitely one market where we are drawing almost all the traffic that Telesign sends into the country. And I think we have been disclosing this every quarter. So till last quarter, I think this quarter around 12 to 13% of our total revenue, sorry, 14% of our total revenue is from Telesign.
So that’s the quantum of business we do with them and it has been in that range over the past several quarters. And that pretty much accounts for, you know, what they will be sending into this market. So the idea is, you know, and that’s not only India, we also service them in a few other markets. Wherever root mobile is able to get the best priced routes, Telesign sends all of that traffic into root mobile to capture that margin within the proxy global system.
Venkatesh S
And on the current scenario which you are facing on ILD traffic, so when do you expect this situation to settle down? Because currently the differential between RCS and SMS through ILD is very huge. So if at all RCS needs to match the price of sms, when do you think this to happen? And at that time do you expect any stability in our business?
Vinay Binyala
Sure. So Venkatesh, that’s a very fair point. And you know, that is something that in fact the telecom operators in India also probably are thinking about. Because if you look at the way the industry evolved, you know, A2B pricing in India also evolved and increased the SMS pricing in India also increased when the operators saw that as a significant revenue stream and that entire process took longer than the operators would have liked. So in my opinion, the RCS pricing should start getting normalized. I’m sure the operators also are putting thought behind it. There are certain operational differences between rcs.
I mean, the dynamics of pricing and the way money moves between operators for RCS is slightly different as compared to sms. So I think all of those things are getting formalized because even now it’s still at a nascent stage if you look at it in terms of adoption. But operators obviously don’t want to miss out on the wave and they are evaluating what should be the right way to price it. And once that happens, we will automatically start passing through those increases with our margin on top of it to the enterprises. So that transition will happen.
And as you rightly pointed out, that will also impact the way ILD traffic is flowing into the country. We might see some traffic going back to SMS depending on how the prices, layout and certain use cases coming to RCA so that that development will happen moving forward.
Venkatesh S
Got it. And so I just have this question on the Indian CPAs market. So if you look at the partner ecosystem of WhatsApp or let it be better, so there are a lot of partners within India and many of the enterprises or the emerging MSMEs, so they do not require the traditional communication through SMS. So in that case, do you see the incremental growth coming from these small enterprises going towards individual partners within the WhatsApp ecosystem?
Vinay Binyala
I get your question right. You’re trying to understand whether the smaller enterprises will work with partners for WhatsApp business messaging. Is that the question?
Jimith
Yeah, because still they require a single point of communication through WhatsApp alone.
Vinay Binyala
Yes. So even the larger enterprises today, except for a few, you know, largely they are working through partners. So the idea is, you know, as I referred earlier, so even if you’re using WhatsApp, you know, certain use cases where you want interactive communication will want to be, you know, over WhatsApp. But traditional notifications or things like OTB, you might still want to use SMS. So. So the point is, every enterprise might have a requirement for multiple channels. And you as an enterprise, it’s not your core business to set up communication channels and integrate with various communication channels.
So to the extent possible, you might want to have a partner who can do all of these services for you and you can avail of multiple channels through a single partner. Plus what we also look at is partners like root mobile. We also offer self serve Platform where smaller enterprises can log in, they can register, they can start using the platform by just doing a simple API integration if they do not want too much customization. So there are multiple models that we operate. Plus what we also do is we also partner with other marketing automation or marketing agencies because a lot of marketing communication for large and small enterprises flows through such agencies or systems. So we become the de facto partner for these marketing or marketing automation companies and enterprises start using our channels in the back end.
Venkatesh S
Got it. And finally, can you quantify your market share on the NLD segment within India?
Vinay Binyala
Sorry, on the which segment? Sorry. Nld.
Venkatesh S
NLD sequence.
Rajdipkumar Gupta
Yeah. NLD Oil.
Venkatesh S
NLD segment. Nld.
Rajdipkumar Gupta
So I think we are definitely, I can tell you as far as the volume is concerned in the Indian market, we are part of top two guys in the country right now. Whether we are number one or number two, that we don’t know. But even if we say top two, probably brutal value is one of them.
Venkatesh S
Got it. And one of your listed peer as well. They are continuously mentioning that they are gaining wallet share from some of the peers. I wanted to know whether are they mentioning us or.
Rajdipkumar Gupta
We are not losing our market share. Okay, so maybe they are gaining from the other competition in India. India has multiple aggregators. But as far as we are concerned we are not losing any customer as such. And as far as the domestic market is concerned, we are maintaining our customers and we are getting volume from them.
Venkatesh S
And from a competition perspective in the other emerging markets like Middle East. So do you see the same competition as we are witnessing in India or and other markets?
Rajdipkumar Gupta
No.
Venkatesh S
Do you think you have a better.
Rajdipkumar Gupta
Competition is everywhere, Venkatesh. Competition is everywhere.
Venkatesh S
But I mean the ability for you. To win those customers. Do you think you have a better.
Rajdipkumar Gupta
Indeed yes. There are many customers we onboarded in uae, Saudi Arabia and Kuwait, in Colombia, in Bangladesh. Some of the deployment which I have already discussed at the beginning of my call, I think these all are win which we are winning because of our product security. And there are competition everywhere as we speak. But there are certain product and the routing and the connectivity advantage we have where we create more value to the customers. And probably that’s why we win more customer as well in the various other markets.
Venkatesh S
Got it. Got it. Thank you and wish you best of luck.
Vinay Binyala
Thank you.
operator
Thank you. We have the next question line of Manish and individual investor. Please go ahead.
Manish
Hi, good evening. Am I audible?
Vinay Binyala
Yes, we can hear you.
Manish
Yeah, I have few queries so my. My first queries. You know it’s the partnership with Proxima has been one and a half years so you have still not seen the synergy that has that that has led to the revenue growth or the profit growth. So how long will it take.
Rajdipkumar Gupta
As we speak, I think because of this partnership there are 14% of the total revenue is coming from that partnership only. And we are exploring as I said the Claro deal which we won in Latin America is because of bics. BICS is taking us to the various other operators where we are showcasing our product portfolio especially on a firewall side.
That’s all happening because of BICs relationship with operators. Along with that we are now working very closely with BIX on network API initiative which is Conera initiative which is definitely going to be the next big thing in CPAAS ecosystem. And I think these all are happening as a one proximal global initiative and there are many things we are working towards self serve and other models where I think there are lots of synergies. But if you see how we are getting that in terms of our numbers you will see those numbers in coming quarters. But we are definitely working very closely with bics to take advantage of their operator relationship.
Manish
Why? I said why that I had that query because if I go to the June 2024 revenues we had 1107 crore revenue. The same revenue is there. If the synergy is working very good, the revenue should have gone up, right?
Manish
So. So I think at the same point one and a half years ago
Rajdipkumar Gupta
So see certain large integration and collaboration takes time. Our introduction with the Tech Mahindra and Infosys has all happened because of Proximus. We are going very working very closely with Infosys and Tech Mahindra and there are certain deployment takes time. We won one large international customer because of Proximus and we work very closely with Tech Mahindra on that. It’s for international termination. So I think these things are happening as we speak even with larger customers partners like Infosys and techm to integrate within the ecosystem or a salesforce. It takes time. You will see the advantage in coming quarters as we speak. And we are working very very closely with the team at Proximus Global to take the best advantage of their relationship. Okay.
Vinay Binyala
Sorry. Between June 24 and December 25 also there have been some trends in the market Manish where you know there are certain artificially generated traffic which we have referred to in some of our earnings calls. Where you know there was traffic in the market which was eliminated by the enterprises. So there have been certain Trends which have led to this situation. But as Rajdee pointed out, we have certain initiatives that we are working on which should deliver positive momentum moving forward.
Rajdipkumar Gupta
A few quarters back Manish, few quarters back as we already announced that we lost one large ODT place for India traffic I think 2, 3, 2 quarters back and that customer is almost 100 crore revenue per year. For a while in spite of that we did some kind of synergy. We work very hard to get more customers on our portfolio to maintain this revenue. So I think we lost some customer also because that customer directly went to the operator and they did a direct deal with operators. In spite of that we gain new customer, we got new customer, we work very closely with our existing customer to get more traffic from that.
All these things, synergies and all these strategies are working very well for us and I think we are doing fairly well as far as the relationship with the proximals global is concerned. Okay, thanks for that. My second query is regarding the telecom part and the enterprise part. So I’m in the telecom industry for the past 20 years would like to understand what are we working on that. So our firewall firewall solution which is deployed with various operators globally plus the Conera initiative of Network API is all solution plus map server for RCS which we have deployed with RobbieXiata in Bangladesh.
We I think most of the operator globally to enable their platform for customer to have RCS capabilities I think they need a third party platform like what we already have. So I think these are the some of the telecom solution which we’re talking about and I think MAP Server is a classic example where we will go along with BIX to various African operators along with Latin American operators where we will try to deploy this MAP Server and we are in talks with multiple operators to get this deployed. So hello.
operator
Thank you ladies and gentlemen. That was the last question. I will now hand the conference over to Mr. Raj Gill for closing comments.
Rajeshwar Singh Gill
Thank you moderator. So with that we will close the call. We appreciate your continued support and we look forward to engaging with you again. Please all have a very good day and we look forward to talking to you on the next call. Thank you.
operator
Thank you. Thank you on behalf of Root Mobile limited that concludes this conference. Thank you for joining us and you may now disconnect your lines.