This article first appeared on GuruFocus .
Release Date: April 27, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
Tanla Platforms Ltd ( BOM:532790 ) has a strong cash position with INR1,000 crores, allowing for potential strategic investments or acquisitions.
-
The company has successfully signed a new ATP deal with Bandhan Bank, expanding its client base in the banking sector.
-
Tanla Platforms Ltd ( BOM:532790 ) is focusing on innovation-led growth, with plans to launch a new platform soon.
-
The company is experiencing growth in its OTT channels, particularly WhatsApp, which is recognized by Meta as a partner of the year.
-
Tanla Platforms Ltd ( BOM:532790 ) is expanding internationally, with significant focus on markets outside India, such as the deployment with Indosat.
Negative Points
-
The company reported an INR12 crores FX loss due to USD-INR fluctuations, indicating exposure to currency risks.
-
Operating margins have been declining since FY22, with current EBITDA margins at 16%, raising concerns about profitability.
-
There is pricing pressure in the SMS segment, which affects revenue growth despite increasing volumes.
-
The growth in the Digital Platform segment is moderate, with single-digit growth despite investments.
-
Regulatory changes, such as potential shifts in SMS notifications for UPI transactions, could impact future business volumes.
Q & A Highlights
-
Warning! GuruFocus has detected 2 Warning Sign with BOM:532790.
-
Is BOM:532790 fairly valued? Test your thesis with our free DCF calculator.
Q: With INR1,000 crores in cash, why not pursue acquisitions in the AI space, especially voice, to propel growth? Also, what is the update on the ATP deal with another bank, and how are you managing the INR12 crores FX loss? A: Uday Reddy, CEO, stated that while they are open to acquisitions, they prefer building over buying due to high valuations in the AI space. They have signed a third ATP deal with Bandhan Bank. Anubhav Batra, CFO, explained that the FX loss is a non-cash item due to mark-to-market payables, and they are revising their hedging policy to minimize future volatility.
Q: Why have operating margins been falling since FY22, and do you expect them to stabilize at 16% EBITDA? A: Anubhav Batra, CFO, noted that while there has been a decline, margins have become range-bound. Investments in growth and innovation are impacting EBITDA, but they expect margins to improve or hold steady in the near future.
Q: What is the expected revenue growth for the next three to five years? A: Deepak Goyal, Executive Director, mentioned that the CPaaS industry is growing at 8-10% annually, and Tanla expects to capture a larger market share, projecting more than 10% growth per year.
Q: How does Tanla's model compare to CPaaS players in the US, and what differentiates Tanla from competitors? A: Deepak Goyal explained that the CPaaS model is similar in the US and India. Tanla differentiates itself through innovation, which helps secure major clients like Bandhan Bank for their anti-phishing platform.
Q: What are the CapEx requirements for Tanla, and will the INR100-150 crores per annum trajectory continue? A: Deepak Goyal confirmed that the CapEx trajectory of INR100-150 crores per annum is expected to continue.
Q: How is Tanla preparing for technology risks and regulatory changes, such as the potential end of mandatory SMS notifications? A: Deepak Goyal stated that Tanla is an AI-native company, continuously innovating to adapt to technological changes. They are also enhancing their product portfolio to address potential regulatory changes.
Q: What is the growth outlook for Tanla's international expansion, and how does it compare to domestic growth? A: Uday Reddy emphasized that international expansion is a significant focus, with a substantial portion of growth expected from outside India.
Q: Can you provide details on the revenue model for the Indosat deal and the ATP product for banks? A: Uday Reddy explained that both Indosat and ATP deals operate on a subscription model, with payments based on the number of subscribers or users protected, and these are long-term deals.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
