Tanla Platforms (TANLA) Q1 25/26 earnings summary

Executive summary

• Achieved Q1 FY26 revenue of ₹10,407 Mn, up 1.6% QoQ and 3.8% YoY, driven by OTT channel growth and enterprise wallet share expansion.

• Launched AI-native and MaaP platforms with Southeast Asian telcos, unlocking new use cases and expansion opportunities.

• Board approved unaudited financial results for Q1 FY26, with no material misstatements identified.

• Announced a ₹17,500 lakhs (INR 175-crore) buyback, contributing to nearly ₹1,000 crore in shareholder returns over five years.

• Maintained a zero-debt balance sheet and strong cash position of ₹9,104 Mn.

Financial highlights

• Q1 FY26 revenue rose 1.6% QoQ and 3.8% YoY to ₹10,407 Mn, with OTT revenue share increasing to 32.3% from 19.9% YoY.

• Gross profit was ₹2,607 Mn (25.0% margin); EBITDA at ₹1,639 Mn (15.8% margin); PAT reached ₹1,184 Mn with an EPS of 8.82.

• Platform revenues experienced a minor drop in the last two quarters, attributed to temporary blips.

• Operating cash flow was ₹64 Mn, impacted by delayed collections; DSO at 91 days.

• Effective tax rate for Q1 FY26 was 19.7%.

Outlook and guidance

• Management aspires to achieve 20% EBITDA CAGR over two years, driven by new platform launches and enterprise business growth; this is an internal target, not formal guidance.

• Growth expected to accelerate from Q2 FY26 as new platforms and deals begin contributing to revenue and profit.

• Focus on expanding digital platforms and enterprise communications with innovation in AI/ML and omnichannel solutions.

• Continued investment in RCS and WhatsApp channels, with 35% YoY growth in RCS.

• Merger of Gamooga Softtech with Karix Mobile is expected to complete by end of FY26.