Tanla Platforms (TANLA) Q4 24/25 earnings summary

Executive summary

• FY25 revenue reached 40,277 Mn, up 2.5% year-over-year, driven by OTT channel growth and international expansion; Q4 FY25 revenue was 10,244 Mn, up 2.4% sequentially.

• OTT channels, including WhatsApp and RCS, contributed 29%-30% of revenue, with RCS seeing 4x YoY growth and ILD SMS revenue declining to below 10% of the portfolio.

• Gross margin for FY25 was 26.1%, with management targeting 25%-27% despite industry-wide pricing pressures.

• Free cash flow for FY25 was 5,145 Mn (101% of PAT), with a record bank balance of INR 1,009 crore and zero debt at year-end.

• PAT for FY25 was 5,073 Mn (12.6% margin); Q4 FY25 PAT at 1,173 Mn (11.5% margin).

Financial highlights

• Q4 FY25 revenue grew 2.4% sequentially, reversing a flat trend from previous quarters.

• OTT revenue contribution rose to 29.2% in Q4 FY25 from 18.2% in Q4 FY24.

• Digital Platforms revenue grew 4.2% YoY in Q4 FY25; Enterprise Communications up 1.6% YoY.

• Free cash flow for FY25 was 101% of PAT, with Q2 and Q4 averaging over 150% of PAT.

• Interim dividend of INR 6 per share declared, with board approval.

Outlook and guidance

• Management expects continued growth in OTT and platform revenues, with international expansion and new telco contracts as key drivers.

• Continued investment in AI-driven platforms and omnichannel capabilities.

• Industry pricing pressures are believed to have bottomed out, with potential for margin improvement if prices recover.

• No formal forward-looking guidance provided, but management is optimistic about exiting the year on a strong note.