Tanla Platforms (NSE:TNSL) Limited, India’s leading Communications Platform as a Service (CPaaS) provider, has announced its financial results for the fourth quarter and full year ended March 31, 2025, reporting steady growth and strong operational performance, backed by key strategic wins and robust cash generation.
For the January–March 2025 quarter, revenue stood at INR 1,024 crore, marking a QoQ growth of 2.4%. Gross profit came in at INR 259 crore with a margin of 25.3%, while EBITDA was reported at INR 163 crore (16.0% margin). Net profit for the quarter was INR 117 crore, translating to a healthy PAT margin of 11.5%, and earnings per share (EPS) stood at INR 8.74. Notably, free cash flow of INR 172 crore helped the company close the year with a cash balance of INR 1,009 crore.
On a full-year basis, FY25 revenue rose to INR 4,028 crore, a YoY increase of 2.5%. Profitability remained consistent with EBITDA at INR 691 crore (17.2% margin) and PAT at INR 507 crore, translating to EPS of INR 37.76. Impressively, the company delivered INR 514 crore in free cash flow, amounting to 101% of its profit after tax, showcasing its capital efficiency.
Commenting on the performance, Uday Reddy, Founder Chairman & CEO, said: “Our strategic investment in OTT is delivering results. We have signed two international MaaP platform contracts. With over INR 5 billion in free cash flow, we are committed to disciplined capital allocation and long-term value creation.”
The quarter also saw Tanla:
- Win international contracts for its MaaP Platform deployment with two overseas telecom operators.
- Declare an interim dividend of INR 6 per share, in line with its 30% dividend payout policy.
- Win multiple accolades, including the Aegis Graham Bell Award for Telecom (BCBA:TECO2m) Innovation, and recognition for corporate governance and diversity initiatives.
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From an investment perspective, Tanla’s fundamentals look compelling. According to InvestingPro, the company’s fair value stands at INR 788.8 per share, offering a potential upside of 68.8% from its current market price of INR 467.2. This fair value estimate is based on a robust blend of financial models, providing investors with a realistic and data-driven valuation benchmark.
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