Tanla Platforms Limited

Tanla Platforms successfully deployed its Wisely.ai platform with Indosat, with the solution now covering all subscribers for the entire Q2 FY26. This deployment, which is a SaaS-based model dependent on subscriber numbers and value-added services like scam protection, has significantly contributed to the company's platform revenue. Management expressed strong optimism about replicating this success with other telcos globally and expanding solutions with existing customers, marking an 'awesome start' for global expansion.

The company achieved a five-quarter high in gross margins, primarily driven by an improved customer mix within the OTT segment and the higher-margin platform business. While OTT volumes experienced sequential softness in Q2 due to seasonal promotional spends in Q1, management clarified this is not a long-term trend. Despite some major customers contributing less due to promotional cycles, the shift in customer mix led to better margins. SMS volumes also grew, and price erosion stabilized, further aiding gross margin improvement in the Enterprise Communication space.

Tanla Platforms revised its aspirational EBITDA target for FY26. Initially aiming for ₹800 crores, the company now expects to achieve a minimum of ₹750 crores, acknowledging a risk of ₹50 crores. This adjustment is primarily due to two significant headwinds: a slowdown in the gaming industry, which impacted large customers like Dream11, and a reduction in certain incentives from Meta for WhatsApp business, which affected gross margin calculations. Management is actively working with Meta to mitigate the impact of these incentive changes.

Despite an increase in top-line and gross profit, net profit for Q2 FY26 showed negative year-on-year growth. Management attributed this to higher indirect costs resulting from 'measured investments' in talent and technology. These investments are considered crucial for fueling future growth and motivating employees. The company expects efficiency to improve as the gross margin profile continues to strengthen, indicating a long-term strategic focus over short-term profit maximization.

Tanla Platforms emphasized its deep commitment and significant investments in AI, particularly through its Wisely.ai platform, which it believes is unique in the CPaaS space. The company is not only deploying AI for external products but also exploring its use for internal processes. Management reiterated its belief in AI as a core driver for future growth and efficiency, positioning itself as a leader in AI adoption within its sector.