1. At a Glance
Tanla is back in the limelight like that one friend who left WhatsApp groups but returns with a verified X handle and AI newsletter. With 63% of India’s A2P SMS traffic under its belt and a market share that screams “monopoly lite,” Tanla’s Q1 FY26 delivered a cocktail of steady revenues, a spicy ₹175 Cr buyback, and a new AI platform launch—because apparently, messaging needs machine learning now.
2. Introduction with Hook
Imagine Reliance Jio and ChatGPT had a caffeine-fueled baby that only texts you at 3 AM with OTPs, promotional spam, and pizza delivery alerts. That’s Tanla.
Now throw in:
- ₹1041 Cr in quarterly revenue,
- 45% market share in India’s National Long Distance (NLD).
Suddenly, it’s not just a text pusher—it’s the carrier, the sender, the spam filter, and now… the AI-powered therapist for all your digital messages.
3. Business Model (WTF Do They Even Do?)
Tanla sells communication infrastructure to enterprises who really want to reach you (sometimes, too often).
- CPaaS: Communications Platform as a Service. Basically, cloud-based messaging that handles A2P SMS, voice, OTPs, etc.
- Trubloq: DND compliance & spam filtering on steroids.
- Wisely: The blockchain-powered messaging superhero no one asked for—but turns out telcos needed.
- AI Platform: Because CPaaS+GPT = Corporate buzzword soup.
So yes, they monetize the ping you ignore 500 times a day.
4. Financials Overview
Q1 FY26 Highlights:
| Metric | Q1 FY26 | YoY Change |
|---|---|---|
| Revenue | ₹1,041 Cr | +3.8% |
| Net Profit | ₹118 Cr | -16% |
| EBITDA | ₹164 Cr | Flat |
| OPM | 16% | Flat YoY |
Commentary:
Margins are tighter than Mumbai parking spots, and profits took a detour to the basement. But hey, steady revenue, and they’re buying back stock like it’s 2021 again.
5. Valuation
Current Price: ₹677
Market Cap: ₹9,109 Cr
Fair Value Range: ₹600 – ₹800
Method 1: P/E
- EPS TTM = ₹36
- Industry P/E median = ~25
- FV = 36 * 25 = ₹900 (but let’s not hallucinate)
- Discounting for slowing growth: ₹720
Method 2: EV/EBITDA
- EV = ₹9,109 Cr
- EBITDA TTM ≈ ₹666 Cr
- EV/EBITDA = ~13.7x
- Sector average: 15–17x
- Adjusted FV: ₹600–₹800
If you think paying 20x earnings for SMSs is a good idea, you probably also tip at ATM machines.
6. What’s Cooking – News, Triggers, Drama
- AI platform launch: Tanla just rolled out its own AI layer over its existing services. Because ChatGPT said it’s cool.
- Buyback bonanza: ₹175 Cr worth of buyback = instant confidence injection.
- CFO shuffle: New CFO, fresh spreadsheet energy.
- Revenue plateau? Growth slowing from 20%+ to ~3% YoY.
More plot twists than a daily soap, and none of them involve hostile takeovers (yet).
7. Balance Sheet
| Metric | FY25 |
|---|---|
| Equity | ₹13 Cr |
| Reserves | ₹2,255 Cr |
| Borrowings | ₹64 Cr |
| Net Worth | ₹2,268 Cr |
| Total Liabilities | ₹3,338 Cr |
| Cash & Investments | ₹760+ Cr (approx) |
Key Take:
Debt: not Titanic-level, but the ship is wobbling just enough to remind you there’s an ocean.
8. Cash Flow – Sab Number Game Hai
| FY | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY23 | ₹247 Cr | ₹-70 Cr | ₹-328 Cr | ₹-151 Cr |
| FY24 | ₹590 Cr | ₹-484 Cr | ₹-151 Cr | ₹-44 Cr |
| FY25 | ₹642 Cr | ₹-220 Cr | ₹-208 Cr | ₹214 Cr |
Cash flow looks like your freelancer friend—always working, rarely seeing money in the bank. But FY25 saw some real green.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROE | 24.1% |
| ROCE | 29.2% |
| D/E | 0.03 |
| PAT Margin | 12% |
| P/E | 18.8x |
ROCE is hotter than Twitter after a Zomato meme. Low debt and juicy returns = solid fundamentals with a side of caution.
10. P&L Breakdown – Show Me the Money
| FY | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹3,355 Cr | ₹590 Cr | ₹448 Cr |
| FY24 | ₹3,928 Cr | ₹735 Cr | ₹548 Cr |
| FY25 | ₹4,028 Cr | ₹692 Cr | ₹507 Cr |
PAT grew 13% in FY24, but flatlined in FY25. It’s like a gym bro who plateaued after year two.
11. Peer Comparison
| Company | Revenue (Cr) | PAT (Cr) | P/E | ROE |
|---|---|---|---|---|
| Tanla Platforms | 4,066 | 484 | 18.8 | 24.1% |
| CE Info Systems | 463 | 128 | 78 | 17.6% |
| Nucleus Software | 832 | 134 | 21.8 | 16.8% |
| Oracle Fin Serv | 6,958 | 2,405 | 32.3 | 29.3% |
Tanla looks like the least drunk guest at a wedding full of finance bros: relatively stable, less volatile, but not flexing Ferrari-sized EPS yet.
12. Miscellaneous – Shareholding, Promoters
| Holder | Mar ’25 | Jun ’25 |
|---|---|---|
| Promoters | 44.11% | 45.49% |
| FIIs | 10.39% | 7.31% |
| DIIs | 0.80% | 0.94% |
| Public | 44.45% | 46.02% |
- Promoters are topping up their plates. That’s a good sign.
- FIIs are ghosting harder than Bumble matches after budget day.
- Shareholder count: up from 2.4 lakh to 3.07 lakh = retail euphoria or exit liquidity?
13. EduInvesting Verdict™
Tanla is evolving from an SMS enabler to an AI+CPaaS juggernaut. Growth may be slowing, but the foundation is solid, debt is low, and buybacks show they believe in themselves (or want to pretend they do).
A decent pit stop in the digital infra highway. But don’t expect business class legroom just yet.
Written by EduInvesting Team | 24 July 2025
Tags: Tanla Platforms, CPaaS, Buyback, AI Messaging, EduInvesting Premium
