Tanla Platforms Limited

Technology — Software - Application · NSE

₹557.50+₹7.65 (+1.39%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by high debt relative to equity, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

The 60-second version of Tanla Platforms Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Tanla Platforms Limited, together with its subsidiaries, provides cloud communication platforms as a service solution to enterprises in India and internationally.

IndustrySoftware - Application

SectorTechnology

Employees1,043

Annual revenue₹4,418 Cr

How does it make money?

Turns over ₹4,418 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹17 left at the operating level before interest, tax and depreciation. Each of its 1,043 employees supports ₹4.24 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹4.24 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 25.2%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 20.5% against a peer median of 32.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE32.0%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 8.3% and earnings to grow about 3.5% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+8.3%

Est. earnings growth+3.5%

Analysts2

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +32% while net margin moved -14% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+32%

Margin effect-14%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

• Revenue CAGR of 9.6% is steady
✗ Profit CAGR of only 4.4%
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows

Quality vs. Valuation

Company Quality

62/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

59/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

13.9x

3Y Median

16.2x

40 monthly readings · mean 19.2x · range 10.0x–33.1x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 14% below its 3y median of 16.2x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 16% below the peer median of 16.5x.

vs. its own history

Fair

16.2x median over 40 months · -14%

vs. sector peers

Fair

16.5x median of 4 peers · -16%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

8.8x

PEG

3.16

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 36% over 3 years.
Cash generation is improving
Free cash flow is up 426% over 3 years.
High return on capital employed
ROCE of 25.2% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 29.5% to 20.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 35.6% to 25.2% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 2 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 2.12x — earnings must service borrowings before shareholders see anything.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Receivables growing faster than salesFinancial
Receivables up 73% against revenue up 32% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 25.2% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Deleveraging frees up earnings
Debt is down 36% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 2.12x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 73% against revenue up 32%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 29.5% to 20.5%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 15%✓ 17.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 7% a year✓ 9.6% CAGR
Latest reported year was 17.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹477 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 22%✓ 25.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

8 good · 2 neutral · 1 weak

Market Cap

₹7,362 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.9x

Cheap

Cheap against the generic band

P/B Ratio

2.97x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹40.18

Profitable

Profitable on a per-share basis

ROE

20.5%

Strong

Strong capital efficiency

ROCE

25.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

2.12x

High

High leverage

Revenue Growth (YoY)

17.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

22.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

2.15%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹477 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

12.1x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

13.7%

Average

Average margins

Net Margin

11.6%

Good

Strong bottom-line conversion

Current Ratio

2.30

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.74

Defensive

Steadier than the market

52W Range Position

60%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

504.9 / 531.5

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

75.8

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3,355 Cr	₹3,928 Cr	₹4,028 Cr	₹4,418 Cr	+9.6%
EBITDA	₹614 Cr	₹775 Cr	₹724 Cr	₹761 Cr	+7.4%
EBITDA Margin	18.3%	19.7%	18.0%	17.2%	—
PAT (Net Profit)	₹448 Cr	₹548 Cr	₹507 Cr	₹509 Cr	+4.4%
EPS	₹33.04	₹40.71	₹37.68	₹38.24	+5.0%
ROE	29.5%	28.2%	22.4%	20.5%	—
ROCE	35.6%	34.4%	27.3%	25.2%	—
Total Debt	₹83 Cr	₹75 Cr	₹64 Cr	₹53 Cr	-13.9%
Free Cash Flow	₹91 Cr	₹431 Cr	₹514 Cr	₹477 Cr	+73.9%

🟢 Revenue has grown at 9.6% a year over 3 years.

🟢 EBITDA has grown at 7.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 18.3% to 17.2% over 3 years (-1.1 pts).

🟢 PAT (Net Profit) has grown at 4.4% a year over 3 years.

🟢 EPS has grown at 5.0% a year over 3 years.

🔴 ROE has fallen from 29.5% to 20.5% over 3 years (-9.0 pts).

🔴 ROCE has fallen from 35.6% to 25.2% over 3 years (-10.4 pts).

🟢 Total Debt has shrunk at 13.9% a year over 3 years.

🟢 Free Cash Flow has grown at 73.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,730 Cr

Total Liabilities

₹1,242 Cr

Cash & Equivalents

₹748 Cr

Operating Cash Flow

₹574 Cr

Capex

-₹98 Cr

Shareholding (proxy)

Institutional Holding

5.5%

Insider Holding

55.6%

Corporate Actions

Next Earnings

21 Oct 2026

Dividend Rate

₹12

Ex-Dividend Date

30 Apr 2026

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 1 Sell

Target Price (Mean)

₹611.5

+9.7% vs CMP

Target Range

₹423 – ₹800

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

2 positive3 mixed1 general

Tanla Platforms Ltd. Share Price Rise Streak, Price Action

Univest, 14 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

TANLA Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Tanla Platforms shares zoom 17% after Q1; PAT rises 20%, revenue up 18%

Business Standard, 23 JulResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Tanla Platforms Limited (TANLA.NS) Stock Price, News, Quote & History

Yahoo! Finance Canada, 09 Oct

Tanla Platforms shares jump nearly 14% post Q1 earnings, revenue surges 17.8% YoY

The Economic Times, 23 JulResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Tanla Platforms Share Price Jumps 15% on Thursday; Here's Why

Dalal Street Investment Journal, 23 JulPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongFinancial Health · Profitability · Valuation

MiddlingBusiness Quality · Growth · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑