Tanla Platforms Q2 FY27 results: net profit up 17.1% to ₹146.42 crore, revenue up 25.3%

How did Tanla Platforms perform in Q2 FY27?

Tanla Platforms reported consolidated revenue of ₹1,352 crore in Q2 FY27, up ₹273.27 crore or 25.3% from Q2 FY26 and ₹125.36 crore or 10.2% from Q1 FY27. Total income was ₹1,363.81 crore, compared with ₹1,087.41 crore a year earlier and ₹1,240.49 crore in the previous quarter.

EBITDA rose to ₹214.33 crore from ₹177.48 crore in Q2 FY26 and ₹201.15 crore in Q1 FY27, but the margin declined to 15.9% from 16.5% and 16.4%, respectively. PBT was ₹187.30 crore, compared with ₹155.50 crore and ₹181.28 crore, while net profit was ₹146.42 crore, against ₹125.05 crore and ₹142.17 crore.

Basic EPS was ₹11.09, up from ₹9.43 in Q2 FY26 and ₹10.77 in Q1 FY27. On the standalone basis, revenue was ₹225.02 crore and net profit was ₹4.52 crore, compared with ₹3.14 crore in the year-ago quarter; standalone revenue growth was 32.9%.

What changed in Tanla Platforms' costs and profit?

Total expenses rose to ₹1,176.51 crore from ₹931.91 crore in Q2 FY26, an increase of ₹244.60 crore or 26.2%. Other expenses increased by ₹222.31 crore to ₹1,057.64 crore, employee cost rose by ₹14.11 crore to ₹79.78 crore, depreciation increased by ₹7.68 crore to ₹37.36 crore and finance costs rose by ₹0.51 crore to ₹1.74 crore.

Other income increased by ₹3.13 crore to ₹12.06 crore from ₹8.93 crore a year earlier. Tax expense rose by ₹10.43 crore to ₹40.88 crore from ₹30.45 crore, while there was no exceptional item in either quarter. Management said higher gross profit was partly offset by higher indirect costs and an increase in depreciation and the effective tax rate.

Management said ValueFirst’s international operations were consolidated during the quarter and currently operated at lower profitability levels, partly affecting EBITDA and PAT growth. It also said revenue benefited from one-time campaigns by select customers. Indirect expenses rose 26.9% year on year, according to the investor presentation.

How did the first half of FY27 go?

For H1 FY27, consolidated revenue was ₹2,578.14 crore, up ₹459.01 crore or 21.7% from ₹2,119.13 crore in H1 FY26. Total income increased by ₹464.23 crore or 21.7% to ₹2,604.30 crore, while PBT rose by ₹65.64 crore or 21.7% to ₹368.58 crore.

Net profit for the first half was ₹288.59 crore, up ₹45.14 crore or 18.5% from ₹243.45 crore in H1 FY26. Basic EPS increased by ₹3.62 or 19.8% to ₹21.86 from ₹18.24.

What do the balance sheet and cash flow show?

Total assets stood at ₹4,151.93 crore on 30 September 2026, compared with ₹3,730.02 crore on 31 March 2026. Total equity was ₹2,722.38 crore against ₹2,488.00 crore, while borrowings remained nil. Cash was ₹719.19 crore against ₹748.01 crore.

Trade receivables declined to ₹924.29 crore from ₹988.24 crore, while trade payables rose to ₹726.66 crore from ₹678.76 crore. The company reported no inventories on either balance sheet date.

H1 FY27 operating cash flow was ₹414.93 crore, compared with ₹173.81 crore in H1 FY26. Investing cash flow was negative ₹335.27 crore against positive ₹47.45 crore, financing cash flow was negative ₹87.81 crore against negative ₹287.06 crore, and capital expenditure was ₹24.47 crore compared with ₹17.02 crore.

How has Tanla Platforms done over the last 8 quarters?

Revenue increased in each of the last seven quarters on a year-on-year basis, while profit rose year on year in each of the last four quarters. Revenue reached ₹1,352 crore in Q2 FY27 from ₹1,000.43 crore in Q3 FY25, and net profit reached ₹146.42 crore from ₹118.51 crore.

The EBITDA margin peaked at 17.0% in Q3 FY26 and fell to 15.9% in Q2 FY27, its lowest level in the reported period after 16.5% in Q2 FY26 and 16.4% in Q1 FY27. The direction of revenue and profit remained upward, but margin declined from the preceding quarter.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results and statements for the quarter and half year ended 30 September 2026 and noted the limited review reports. It also declared the first interim dividend for FY 2026-27 at ₹6 per equity share, or 600% of the ₹1 face value, with 2 November 2026 fixed as the record date.

The same-day filings did not report a fund raise or any appointment. The investor update said Tanla completed the acquisition of ValueFirst’s overseas business, expanding its presence in the Middle East and Southeast Asia.

What did Tanla Platforms' management say?

Management said revenue growth came from existing-customer wallet share, OTT, SMS, Wisely.ai and ValueFirst’s overseas business. It reported net revenue retention of 119% and said the quarter benefited from one-time campaigns by select customers. Enterprise Communications revenue grew 27.2% year on year, while Platform Business revenue grew 6.4% and was below management’s expectations.

Management said the prolonged delay in the regulatory implementation of India’s consent framework affected the anticipated rollout and growth of the Consent platform. It said priorities for the second half of FY27 were to sustain growth ahead of the market, expand margins, accelerate platform commercialisation and maintain cash generation.

Management said ValueFirst’s international operations currently operate at lower profitability levels and partly affected EBITDA and PAT growth. It also flagged customer concentration, pricing pressure and competition, cyber-security incidents, vendor or network dependency, regulatory changes, geopolitical tensions, sanctions and supply-chain disruption as risks. No numerical guidance was provided in the investor presentation.

Management said it continued investing in talent, primarily across go-to-market and Innovation, to support long-term growth. It reported free cash flow of ₹2,316 Mn for the quarter, equal to 158% of PAT, and described the balance sheet as debt-free with ₹14,474 Mn of cash.

How did Tanla Platforms shares react?

Tanla’s shares moved 1.3% in the first five minutes after the filing, fell 0.6% after 15 minutes and rose 1.2% after 30 minutes. The stock closed the reaction day up 2.8% from the pre-results close of ₹581.85.

Tanla outperformed the industry median by 3.1 percentage points on the reaction day and by 5.3 percentage points by the next day’s close. Earlier reaction-day moves were 9.8% on 22 July 2026, 20.5% on 24 April 2026, 5.3% on 22 January 2026 and negative 6.1% on 17 October 2025.

How did other Software Products companies do?

Nine other Software Products companies that had filed for the quarter were compared with Tanla. Their median revenue growth was 6.6%, while seven grew more slowly than Tanla and two grew faster than Tanla.

Of the 13 peers for which profit was compared, seven reported higher profit. Tanla’s 25.3% year-on-year revenue growth was above the peer median of 6.6%, according to the peer data as of 4 November 2026.