Tanla Platforms (TANLA) Q2 25/26 earnings summary

Executive summary

• Platform revenue and gross profit saw significant growth, driven by Wisely.ai's full-quarter deployment with Indosat and strong performance in Digital Platforms and Enterprise Communications.

• Q2 FY26 revenue reached ₹107,847.56 lakhs, up 3.6% QoQ and 7.8% YoY, with gross profit at 2,868 Mn, the highest in eight quarters.

• EBITDA for the year is expected to be around INR 750 crores, with a potential shortfall due to gaming sector headwinds and reduced WhatsApp incentives.

• PAT for Q2 FY26 was 1,250 Mn, up 5.6% QoQ, and EPS increased 6.9% QoQ to 9.43.

• Board approved unaudited financial results for Q2 and H1 FY26, with no material misstatements found.

Financial highlights

• Revenue grew 3.6% QoQ and 7.8% YoY, with OTT channels contributing 29.9% of revenue in Q2 FY26.

• Gross margin expanded by 155 bps QoQ to 26.6%, reaching a five-quarter high, and Digital Platform gross profit grew 11.7% YoY.

• EBITDA margin rose to 16.5%, up 70 bps sequentially, and net profit for Q2 FY26 was ₹12,504.52 lakhs.

• Free cash flow stood at 1,645 Mn, representing 132% of PAT, and the company remains debt-free with a cash balance of 8,814 Mn post-buyback.

• Indirect costs increased due to investments in talent and technology, impacting net profit year-over-year.

Outlook and guidance

• Management maintains an aspirational 20% EBITDA CAGR target, but expects a possible shortfall this year due to external headwinds.

• Focus remains on predictable growth through SaaS-based Digital Platforms and Enterprise Communications, with global expansion and new solution launches planned.

• Ongoing investment in AI-native platforms and customer relationship expansion.

• No formal revenue or EBITDA margin guidance was provided, but positive momentum in gross margin and platform business is expected to persist.

• Company continues to operate as a single segment CPaaS provider.