Tanla Platforms Q3 FY26: Revenue up 12% to ₹1,121cr

Tanla Platforms Limited reported a stronger Q3 FY26 (Oct to Dec 2025), posting double-digit year-on-year growth in revenue and profit, alongside an improvement in operating margins. The CPaaS-focused company said revenue from operations (net) rose to ₹1,121.0 crore, up 12.1% YoY, supported by growth across both Digital Platforms and Enterprise Communications.

The company announced its results on January 23, 2026, from Hyderabad. Management highlighted that the quarter marked the first time quarterly revenue crossed ₹1,100 crore.

Key financial highlights for Q3 FY26

Revenue growth was complemented by faster expansion in gross profit and EBITDA. Gross profit rose 18.7% YoY to ₹309.3 crore, while EBITDA increased 16.6% YoY to ₹190.5 crore. Profit after tax (PAT) increased 10.8% YoY to ₹131.4 crore.

Margins also improved sequentially. EBITDA margin expanded by 54 basis points quarter-on-quarter (QoQ) to 17.0%, while gross margin increased to 27.6% in Q3 FY26.

The company reported earnings per share (EPS) of ₹9.95 for the quarter.

What drove the quarter

Tanla attributed the growth to its two operating segments, with Enterprise Communications remaining the larger contributor. The company noted that the Enterprise Communications segment benefited from increased wallet share from existing customers and new client additions.

Business updates cited year-on-year growth led by Wisely.ai, the MaaP platform, and OTT channels. The company also disclosed that newly acquired customers contributed ₹3.7 crore in Q3 FY26.

Segment performance: Enterprise Communications stays dominant

Enterprise Communications revenue came in at ₹1,019.4 crore in Q3 FY26, compared with ₹904.9 crore in Q3 FY25. Digital Platforms revenue was ₹101.6 crore in Q3 FY26 versus ₹95.5 crore in Q3 FY25.

On a sequential basis, both segments showed growth compared with Q2 FY26, with Enterprise Communications rising from ₹980.1 crore and Digital Platforms increasing from ₹98.4 crore.

Cost structure and margin movement

Cost of services rose to ₹811.7 crore in Q3 FY26 from ₹739.7 crore in Q3 FY25. Indirect expenses also increased to ₹118.8 crore from ₹97.3 crore.

The quarter also saw higher employee-related costs. Employee expenses were reported at ₹73.09 crore in Q3 FY26, up from ₹56.61 crore in Q3 FY25, a 29.11% YoY increase.

Despite these cost increases, Tanla reported a gross margin of 27.6% in Q3 FY26, up 100 basis points QoQ. The company attributed the sequential improvement to sourcing efficiencies across channels and a favourable change in customer mix.

Profitability: growth with a mixed margin picture

PAT increased to ₹131.4 crore, with a profit after tax margin of 11.7% in Q3 FY26. At the same time, the company flagged that net profit margin declined to 11.72% in Q3 FY26 from 14.09% in Q2 FY25, a contraction of 237 basis points year-on-year.

Profit before tax (PBT) for Q3 FY26 was reported at ₹164.8 crore, up 12.3% versus the year-ago quarter and 6.0% versus the previous quarter.

Tax expenses were described as stable at 20.29% of profit before tax, slightly higher than 19.25% in Q3 FY25 and within a stated historical range of 18% to 21%.

Cash position, free cash flow, and balance sheet

Tanla ended Q3 FY26 with cash and cash equivalents of ₹938.7 crore and continued to report a debt-free balance sheet.

Free cash flow (FCF) for Q3 FY26 stood at ₹136.8 crore, translating into 104% conversion of PAT. The company positioned this as evidence of efficient cash generation.

Separately, the company also cited the quality of earnings using historical numbers, stating that operating cash flow of ₹642.0 crore in FY25 covered net profit of ₹507.0 crore.

Auditor’s review: no qualifications noted

The auditor’s review reports for standalone and consolidated unaudited financial results for the quarter and nine months ended December 31, 2025, were stated to contain no qualifications, concerns, or issues. The note also mentioned that some subsidiaries and a branch were not reviewed by auditors, but were considered not material to the group.

Nine-month trend and FY26 run-rate

For the nine months ended April to December 2025 (9M FY26), accumulated revenue was reported at ₹3,240.18 crore. The company compared this with FY25 full-year sales of ₹4,027.00 crore, indicating the FY26 run-rate based on the April to December period.

Stock market lens: ROE and valuation markers cited

Tanla reported return on equity (ROE) of 30.50%. The company also disclosed that shareholder funds grew to ₹2,268.29 crore in FY25 from ₹1,941.78 crore in FY24, a 16.81% increase.

It further stated book value per share at ₹168.50 and cited a market price of ₹500.15, implying a price-to-book ratio of 2.97x.

Summary table: Q3 FY26 financials and segment revenue

What to track next

The quarter reinforced Tanla’s ability to grow revenue and operating profit, while also showing that cost inflation, including employee expenses, remains a key variable in margin outcomes. Investors will likely track whether the company sustains gross margin gains from sourcing efficiencies and customer mix, alongside continued execution in Enterprise Communications and the platforms cited as growth drivers.

The next set of updates will come with subsequent quarterly disclosures, including how the company balances growth with rising operating costs and how segment momentum evolves after Q3 FY26.