Tanla Platforms Surges 12% on Record Q3 Revenue in 2026

Shares of Tanla Platforms surged over 12% on Friday, January 23, 2026, following the announcement of its strong financial results for the third quarter of fiscal year 2026. The software products firm's robust performance, which included record revenue and double-digit profit growth, boosted investor confidence and led to a significant rally in its stock price.

A Milestone Quarter for Tanla Platforms

Tanla Platforms reported a landmark quarter, with consolidated revenue from operations climbing 12.1% year-on-year (YoY) to Rs 1,121 crore. This is the first time the company's quarterly revenue has surpassed the Rs 1,100 crore threshold, marking a significant operational milestone. On a sequential basis, revenue grew by 3.9%, indicating sustained business momentum.

The company's net profit also saw a healthy increase, rising 10.8% YoY to Rs 131 crore for the quarter ended December 2025, compared to Rs 118.5 crore in the corresponding period of the previous year. This performance underscores the company's ability to scale its operations while maintaining profitability.

Profitability and Margin Improvement

Operational efficiency was a key theme in the Q3 results. Tanla's Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) grew by 16.6% YoY to Rs 190.4 crore. The EBITDA margin expanded by 66 basis points to 17%, up from 16.3% in the same quarter last year.

Gross profit for the quarter stood at Rs 309 crore, an impressive 18.7% increase YoY. The gross margin improved to 27.6%, reflecting better cost management and a favorable product mix. This consistent improvement in margins highlights the company's strengthening financial health.

Strong Cash Flow Generation

Tanla Platforms demonstrated robust cash-generating capabilities during the quarter. The company reported a free cash flow of Rs 137 crore, which translates to 104% of its profit after tax (PAT). This strong cash conversion ratio is a positive indicator of the company's liquidity and its ability to fund future growth initiatives without relying heavily on external financing.

Management Commentary

Uday Reddy, the Founder Chairman and CEO of Tanla Platforms, described the quarter as a milestone. He stated, "Q3 marks a milestone, with revenue crossing Rs 1,100 Cr for the first time and growth delivered across all key financial metrics. Both business segments continue to perform well. We will remain focused on investing in Wisely.ai to build innovative solutions for telcos and enterprises."

Market Reaction and Stock Performance

The market responded positively to the strong earnings report. The stock gained 12.13% to reach an intraday high of Rs 503 on the BSE, against the previous close of Rs 448.55. The company's market capitalization subsequently rose to Rs 6,605 crore. This rally is particularly noteworthy given the stock's recent performance. Despite the surge, the share price has declined by approximately 20% over the last three months and 27% over the past three years, making Friday's gains a significant rebound.

Key Financial Metrics Summary

Valuation and Technical Outlook

Following the price surge, Tanla Platforms trades at a price-to-earnings (P/E) ratio of approximately 13.36. From a technical standpoint, the stock's 14-day Relative Strength Index (RSI) stood at 26.5 prior to the rally, indicating an oversold condition which may have supported the technical bounce. While the stock has moved above its short-term moving averages, it remains below its key long-term averages, suggesting that sustained momentum will be crucial for a longer-term trend reversal.

Business Segments and Growth Drivers

The company confirmed that growth was broad-based, with both its Digital Platforms and Enterprise Communications segments performing well. Key growth drivers for the quarter included its AI-powered platform Wisely.ai, its Marketplace-as-a-Platform (MaaP) offering, and increased traction in OTT channels. These platforms are central to Tanla's strategy of providing secure and scalable digital communication solutions.

Conclusion

Tanla Platforms has delivered a strong performance in Q3 FY26, characterized by record revenues, healthy profit growth, and improved margins. The positive market reaction reflects investor approval of the company's operational execution and financial discipline. The management's continued focus on investing in its Wisely.ai platform positions the company to capitalize on the growing demand for advanced A2P messaging and enterprise communication solutions.