Tanla Platforms Ltd Management Discussions

Management Discussion and Analysis

Global Economy

The global economy grew at 3.2% in calendar year 2025 (CY25), as estimated by the International Monetary Fund in its World Economic Outlook, broadly in line with previous calender year. While economic performance varied across regions, individual economies continued to be shaped by their distinct strengths, policy priorities, and market dynamics.

The most consequential development in CY25 was the announcement of a sweeping US tariff regime in April 2025, which triggered significant disruption to global trade flows and supply chains. Partial rollbacks and interim bilateral trade agreements followed in subsequent months, but the episode durably altered supply chain strategies across industries and geographies, accelerating diversification away from concentrated manufacturing bases. Against this backdrop, regional economies responded differently.

The United States remained the most resilient developed economy, with strong labour markets and domestic consumption providing a stable foundation. Europe continued to face structural headwinds in the form of subdued industrial output, elevated energy costs, and fiscal consolidation requirements that kept growth below potential. China grew below its recent historical rates, weighed down by a prolonged property sector correction and softening export momentum in the face of tariff headwinds.

Emerging markets bore a disproportionate share of the impact from the US tariff regime. The effective US tariff rate on emerging market exports surged to nearly 20% through CY25, compared to approximately 4% prior to the current administrations trade policy reset. Economies with deep integration into global goods manufacturing and export-led growth models faced the sharpest headwinds, with the IMF revising its emerging market and developing economy growth projection downward by 0.5 percentage points to 4.5% for CY25.

CY25 was, in summary, a year of divergence. Economies and regions that entered the year with strong fundamentals demonstrated resilience. Those that were more exposed to trade disruptions and external shocks faced meaningful pressure. The global growth story of CY25 was not one of uniform expansion but of varying capacity to absorb and adapt to a rapidly shifting external environment.

Indian Economy

India retained its position as the worlds fastest-growing major economy in FY26, with the GDP growth estimated at 7.7%, up from 6.5% in FY25. This performance, achieved against a challenging global backdrop, reflected the fundamental strength of Indias domestically driven growth model. Growth was broad-based across sectors. The services sector remained the primary engine, with financial services, trade, transport, and communication recording strong expansion through the year.

Manufacturing activity sustained momentum supported by Production Linked Incentive schemes, while government investment in infrastructure continued to underpin construction activity. The RBI reduced the repo rate three times through the year by a cumulative 100 basis points, bringing it to 5.25% as at March 31, 2026, supporting credit growth, household consumption, and business investment activity. Fiscal policy complemented monetary easing. The government maintained its capital expenditure programme while implementing income tax relief and GST rationalisation measures, providing direct support to consumer spending.

Indias fiscal deficit continued on a consolidation path through the year. Indias export sector faced headwinds from the US tariff regime, with tariffs on Indian goods reaching up to 50% before an interim bilateral agreement brought the effective rate down to approximately 18%.

Indias overall growth, however, remained largely insulated given the economys predominantly domestic demand orientation. The outbreak of conflict in West Asia in late February 2026, and the resulting disruption to global energy markets, introduced fresh uncertainty into Indias near-term inflation outlook given the countrys significant dependence on imported crude oil and natural gas.

Looking ahead, the Economic Survey projects Indias real GDP growth at 6.8-7.2% for FY27, supported by ongoing structural reforms, continued infrastructure investment, and a favourable demographic dividend

Industry Overview

The global CPaaS market is projected to reach USD 27.4 billion by 2029 (Gartner). Indias CPaaS market is estimated ~ at INR 14,500 Cr (USD 1.7 billion), growing at 5-7% annually, with OTT channels now contributing approximately 50% of the mix. WhatsApp remains the fastest-growing channel, reflecting a clear shift by enterprises towards rich media, personalised engagement, and two-way communication.

The evolution of digital communication is now entering a new phase. What began as a shift toward multichannel engagement has progressed into AI-native, outcome-driven experiences, where enterprises increasingly recognise that their competitive differentiation lies in delivering seamless, personalised, and secure digital journeys at scale.

User expectations have moved in the same direction, with real-time engagement, relevance, and privacy-first interactions now becoming baseline requirements rather than differentiators. These shifts are playing out against a more complex operating backdrop, where enterprises must balance growth ambitions with regulatory compliance, cost discipline, and the pressure to do more with less.

Trust has also emerged as a critical dimension of this evolution, as rising instances of spam and fraud make it imperative for enterprises to ensure that every interaction is secure and verifiable.

Growth Drivers

Demand is being reshaped by a structural shift in digital engagement, from enabling communication to delivering intelligent, trusted, and outcome-driven interactions at scale.

AI-Powered Customer Engagement

Enterprises today evaluate every communication investment through one lens: return. This shift in mindset has fundamentally redefined what they expect from their technology partners that can anticipate user needs, orchestrate journeys in real time, and automate workflows across channels and use cases. The demand for contextual, personalised, and measurable engagement across the customer lifecycle from acquisition and conversion through to retention was already reshaping the CPaaS landscape long before AI entered the conversation. As a result, CPaaS is evolving beyond a communication layer into a strategic platform for customer interaction, conversion, and monetisation.interaction, conversion, and monetisation.

Unified Experience

Winning enterprise relationships is increasingly defined by platform depth and integration. Enterprises are prioritising unified platforms that operate seamlessly across channels while maintaining a single, persistent view of the customer. This enables more contextual, data-driven interactions and consistent engagement across the lifecycle. The combination of omnichannel capabilities, centralised customer data, and intelligent orchestration is becoming a key decision criterion, driving consolidation towards fewer, more capable platforms that can demonstrate measurable impact at every stage of the customer journey.

Trust by Design

As digital interactions scale, trust is becoming a critical enabler of engagement. Rising instances of spam, fraud, and phishing are pushing enterprises to prioritise secure, authenticated communication, recognising that every compromised interaction carries real brand and commercial cost. At the same time, regulatory frameworks around data privacy, consent, and governance are raising the bar for commercial communication, hence Platforms that can embed security, compliance, and privacy into the communication layer are preferred.

Opportunities

Demand for digital communication continues to grow. Non-discretionary usage, led by BFSI, government, and other regulated sectors, is rising with the scale of Indias digital economy, with banking alerts, UPI notifications, and OTP volumes increasing alongside transaction growth. At the same time, discretionary spend in retail and e-commerce remains strong, with enterprises investing across the full customer lifecycle from acquisition and conversion through engagement and retention and increasingly directing budgets toward AI-led solutions that deliver measurable returns. OTT channels are opening new use cases for small and mid-sized businesses, further broadening the opportunity across the ecosystem.

For enterprises today, the question is not the choice of channel but how to reach the right customer, on the channel they prefer, with the right message at the right moment. Digital communication has evolved across the customer lifecycle, with different functions driving distinct outcomes — marketing teams enabling acquisition and engagement through conversational experiences, operations teams powering trusted transactional communication, and customer experience teams strengthening retention through personalised interactions. As OTT and SMS continue to play complementary roles in enterprise communication, the opportunity continues to expand with every new business use case.

Regulatory focus on data security & privacy is intensifying, and market practices are evolving toward more secure, transparent, and consumer-centric models. This is creating greenfield opportunities in trusted communication that are largely new and still forming. With deep domain expertise in this space, we are well placed to build platforms that address these emerging needs as the ecosystem shifts toward higher standards.

Across each of these dimensions, the opportunity is not just to participate in market growth but to shape how trusted, intelligent digital communication is built and delivered at scale.

Business Overview

Digital communication today operates within a complex ecosystem of players — enterprises seeking to engage customers intelligently, users expecting relevant and trusted interactions, telcos that are both partners and enablers of communication infrastructure, and regulators mandating accountability, consent, and data privacy across the value chain. Sitting at the centre of this ecosystem, we play a role across every stage of the digital interaction value chain — from authentication and acquisition, through engagement and customer experience, to protection and retention.

The business operates through two segments. The Digital Platforms segment addresses the trust layer in digital communications, building AI-native solutions that protect users from spam, scams, and fraudulent interactions while enabling telcos and enterprises to operate in a secure and compliant environment.

Strengths:

As one of Indias leading CPaaS providers, we enable secure and trusted communication between enterprises and consumers at scale. Our deep integration with telecom operators and enterprise ecosystems positions us as the central nervous system of the countrys digital communication infrastructure. With over two decades of experience, we have established a domain leadership that enables us to identify greenfield opportunities early and develop market-relevant solutions. Our work with the Tamil Nadu e-Governance Agency on Namma Arasu, a flagship WhatsApp-based governance initiative, reinforces our role in enabling citizen-centric digital governance at scale. Our innovation and go-to-market teams bring deep product and market fluency, with 8% of our workforce possessing over 20 years of specialized experience. This reservoir of expertise strengthens our ability to innovate, commercialize, and expand our platforms across diverse markets and customer segments.

Strong financial fundamentals, reflected in a debt- free balance sheet and healthy cash reserves, provide resilience, operational flexibility, and the ability to invest in innovation and future growth initiatives. Free cash flow conversion has remained above 75% of profit after tax over the last three years, reflecting disciplined working capital management and efficient capital allocation.

Promotion

Continuous investment in innovation and technology enables us to identify greenfield opportunities and build scalable platforms across AI-led communications, conversational engagement, and next-generation communication channels. Over the past five years, we have successfully deployed and commercialised platforms such as Trubloq, MaaP, and Wisely AI, demonstrating our ability to translate innovation into market-ready solutions. This is reinforced by a strong intellectual property focus, with eight patents filed to date.

Deep Customer

Long-standing relationships with leading enterprises across d Long-standing relationships with leading enterprises across diverse industries provide deep insights into changing communication needs and customer engagement priorities. We serve 70% of leading brands in India, with over 60% of our revenue contributed by customers with a relationship vintage of more than five years, reflecting the trust, reliability, and value we deliver to our customers iverse industries provide deep insights into changing communication needs and customer engagement priorities. We serve 70% of leading brands in India, with over 60% of our revenue contributed by customers with a relationship vintage of more than five years, reflecting the trust, reliability, and value we deliver to our customers.

Focus Areas:

Innovation:

We have ability to identify greenfield opportunities, understand evolving customer needs, and build and deploy platforms that create measurable outcomes. With over two decades of experience across the digital interaction value chain, we combine deep domain expertise, customer insights, technology capabilities, and ecosystem understanding to create solutions that are secure, scalable, adaptable, and designed to address complex enterprise needs across markets and use cases. The deployment of Wisely.ai with Indosat in Indonesia demonstrates our ability to build and scale innovative solutions in real-world environments. The platform is protecting 100 million users and has flagged over 2 billion spam and scam communications within six months. We will continue to expand our platforms, develop new use cases, and build differentiated capabilities that enable us to address evolving enterprise needs and create long-term value for customers and partners.

Al-Powered Customer Engagement:

Customer engagement is evolving from transactional communication to more meaningful, AI-enabled interactions that are contextual, responsive, and outcome-driven. Enterprises are increasingly looking to leverage communication as a strategic channel to improve customer experience, drive conversions, and enhance digital journeys. We are focused on enabling this shift by helping enterprises deliver personalised and automated customer interactions across the lifecycle. By combining communication capabilities with AI, we are expanding use cases across customer journeys, enabling businesses to engage customers more effectively through relevant and timely interactions. With increasing adoption of conversational platforms, we see an opportunity to extend these capabilities beyond large enterprises and unlock the small and medium business segment through scalable solutions. We will continue to build new use cases that make AI-led customer engagement more accessible and create measurable value for businesses across segments.

Global Expansion and Scale

Our global expansion is driven by the opportunity to take our capabilities and proven solutions to new markets. We are focused on scaling our technology platforms, leveraging our industry expertise and global partnerships to address evolving market needs. Our deployment of Wisely.ai with Indosat demonstrates our ability to deliver solutions at national scale and create measurable impact. As markets globally look to strengthen digital trust and enhance customer experiences, we see opportunities to extend these capabilities across geographies. We will continue to leverage our technology foundation, industry expertise, and proven use cases to expand into new markets while adapting to local requirements.

Finanical Performance:

Revenue grew by 9.7% YoY to INR 4,418 Cr in FY26

Gross profit grew by 11.8% YoY to INR 1,175 Cr. Gross margin was at 26.6%

EBITDA grew by 4.8% YoY to INR 724 Cr. EBITDA margin was at 16.4%

Profit after tax grew by 0.4% YoY to INR 509 Cr. PAT margin was at 11.5%

Earnings per share was at INR 38.36 Free cash flow was at INR 477 Cr

Cash and cash equivalents at INR 1,144 Cr post dividend and buyback of INR 340 Cr

The Consolidated financial statements of the Group have been prepared in accordance with Indian Accounting Standards ("Ind AS") as notified under Section 133 of the Companies Act, 2013 (the "Act") read with Rule 3 of the Companies (Indian Accounting Standards) Rules 2015 as amended, issued by Ministry of Corporate Affairs ("MCA"). Accounting policies have been consistently applied to all the years presented except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

Consolidated Profit & Loss Account

	Year ended March 31
In INR Cr unless otherwise stated	FY26	FY25	Change %
Revenue from operations	4,418	4,028	9.7
Cost of services	(3,243)	(2,977)	8.9
Gross profit	1,175	1,051	11.8
Gross Margin	26.6%	26.1%	50 bps
Operating expenses	(451)	(360)	25.3
EBITDA	724	691	4.8
EBITDA margin	16.4%	17.2%	(80 bps)
Depreciation and amortization	(122)	(98)	24.5
EBIT	602	593	1.5
EBIT margin	13.6%	14.7%	(110 bps)
Finance cost	(4)	(6)	(33.3)
Other income	37	40	(7.5)
Profit before tax	634	627	1.1
Tax expenses	(125)	(120)	4.2
Profit after tax	509	507	0.4
PAT Margin	11.5%	12.6%	(110 bps)
Earnings per share	38.36	37.76	1.6

Revenues:

Revenues are generated from our Digital Platforms and Enterprise Communications business. Digital Platforms revenues are recognized based on a revenue-sharing model, wherein earnings are determined as a percentage of the value of transactions processed through mobile carrier networks and other suppliers, at a price agreed as per the contract. In addition, revenues are also generated through usage-based models, including per-user billing and pay-per-use models. Enterprise Communications revenues are recognized based on the volume of transactions processed through our platforms, at a predefined fixed rate per transaction, as specified in customer contracts and fixed-price contracts.

Particulars (In INR Cr)	FY26	FY25	Change
Enterprise Communications	4,023	3,664	9.8%
Total Revenue	4,418	4,028	9.7%

Revenue for FY26 grew by 9.7% YoY to INR 4,418 Cr. Revenue growth of INR 390 Cr was driven by INR 190 Cr from existing customers and INR 200 Cr from net new customers. Out of the overall revenue growth of INR 390 Cr Digital Platforms grew by INR 31 Cr and Enterprise Communications by INR 359 Cr

Digital Platforms contributed 8.9% of total revenue during FY26. Revenue grew by 8.5% YoY to INR 395 Cr. The growth was led by Wisely.AI and the Messaging as a Platform (MaaP) offering for RCS. Enterprise Communications contributed 91.1% of total revenue during FY26. Revenue grew by 9.8% YoY to INR 4,023 Cr, driven by growth in OTT channels.

The contribution of OTT channels to total revenue increased from 23% in FY25 to 31% in FY26.

During the year, 339 new customers were added, contributing INR 200 Cr in revenue, with 23% of new customer additions on OTT channels. Revenue from customers contributing more than INR 50 Cr annually grew by 4.7% YoY to INR 1,757 Cr. Revenue from customers contributing between INR 10 Cr and INR 50 Cr annually grew by 18.0% YoY to INR 1,495 Cr, driven by increased wallet share.

Customer Segmentation

	FY26		FY25
Customer Segment (In INR Cr)	Count	Revenue	Count	Revenue
>50 Cr	17	1,757	19	1,679
>10 Cr - <50 Cr	66	1,495	59	1,267
>1 Cr - <10 Cr	270	951	272	876
Total	353	4,203	350	3,822

Note: The above table does not include revenue for customers contributing less than 1 Cr a year

Deep Customer Relations

Customer Tenure	Number of Customer	Revenue Contribution in FY26 (%)
More than 5 years	662	68.9%
3 to 5 years	1,036	21.4%
1 to 3 years	1,052	16.4%
Up to 1 year	413	4.5%

Cost of Services:

The cost of services consists of the service transaction fee paid to mobile carriers and other suppliers.

Particulars (In INR Cr)	FY26	FY25	Change
Cost of services	3,243	2,977	8.9%

Cost of services grew by 8.9% YoY to INR 3,243 Cr, led by volume growth. The cost of services is primarily associated with the enterprise communications, as it is minimal for the digital platforms business.

Gross Profit

Gross profit is calculated as revenue less the cost of services.

Gross profit grew by 11.8% YoY to INR 1,175 Cr in FY26, with a gross margin of 26.6%. The overall growth of INR 124 Cr was driven by revenue growth of 9.7% and 50 bps margin expansion. Digital Platforms gross profit grew by 8.2% YoY to INR 389 Cr, led by Wisely. ai and the MaaP platform for RCS. Enterprise Communications gross profit grew by 13.7% YoY to INR 786 Cr, driven by revenue growth and sourcing efficiencies across channels. Digital Platforms contributed 33.1% of total gross profit in FY26.

Particulars (In INR Cr)	FY26	Gross Margin	FY25	Gross Margin	Change
Digital Platforms	389	98.5%	359	98.7%	8.2%
Enterprise Communications	786	19.5%	691	18.9%	13.7%
Total	1,175	26.6%	1,051	26.1%	11.8%

EBITDA

EBITDA grew by 4.8% YoY to INR 724 Cr in FY26, with an EBITDA margin of 16.4%. EBITDA growth of INR 33 Cr was driven by gross profit expansion of INR 124 Cr, partially offset by an increase in indirect costs of INR 91 Cr. Indirect costs stood at 10.2% of revenue and 38.4% of gross profit in FY26, compared to 8.9% of revenue and 34.3% of gross profit in FY25.

Particulars (In INR Cr)	FY26	FY25	Change
Gross Profit	1,175	1,051	11.8%
Indirect cost
Employee costs	(267)	(216)	23.6%
Connectivity and related expenses	(32)	(33)	(3.0%)
Other expenses	(152)	(111)	36.9%
EBITDA	724	691	4.8%
EBITDA margin	16.4%	17.2%	(80 bps)

Indirect cost walk from FY25 to FY26

Employee Benefits Expenses

Employee benefits expenses increased by 23.6% YoY to INR 267 Cr in FY26, representing 6.0% of revenue as compared to 5.4% in FY25. The increase in salaries and wages was driven by annual increments and net additions, with hiring focused on Innovation, GTM, and Customer Success teams. Employee stock compensation expense increased to INR 29 Cr from INR 10 Cr in FY25, driven by issuances of performance-linked RSUs.

Particulars (In INR Cr)	FY26	FY25	Change
Salaries and wages	220	188	17.0%
Provident fund and other funds	7	7	Flat
Employee stock compensation expense	29	10	190.0%
Staff welfare expenses	11	11	Flat
Total	267	216	23.6%

Connectivity and Related Expenses

Connectivity and related expenses decreased by 3.0% YoY to INR 32 Cr in FY26, representing 0.7% of revenue. The decrease was primarily driven by optimisation of data centre and other cloud hosting charges.

Particulars (In INR Cr)	FY26	FY25	Change
Data centre and hosting charges	27	29	(6.9%)
Internet and cloud computing charges	5	4	25.0%
Total	32	33	(3.0%)

Other Expenses

Other expenses increased by 36.0% YoY to INR 151 Cr in FY26, representing 3.4% of revenue as compared to 2.8% in FY25. The full-year forex impact was INR 9 Cr driven by currency fluctuations in USD and EUR. Other expenses also include a provision for doubtful debts of less than 0.3% of overall revenue, made in line with the norm-based provisioning policy.

Particulars (In INR Cr)	FY26	FY25	Change
Marketing expenses	17	19	(10.5%)
Travelling expenses	19	16	18.8%
Corporate social responsibility	13	13	Flat
Foreign exchange fluctuation	9	2	350.0%
Allowance for doubtful debts	13	3	333.3%
Other expenses	80	58	37.9%
Total	151	111	36.0%

Depreciation and Amortisation

Fixed assets, including IT assets, are depreciated over their estimated useful lives using the straight-line method. Intangible assets, recognised at the time of acquisition based on the purchase price allocation methodology, are amortised over their estimated useful lives using the straight-line method. The right-of-use asset, representing leased assets such as office premises, is depreciated over its useful life.

Depreciation and amortisation increased by 24.5% YoY to INR 122 Cr in FY26. The increase was primarily driven by amortisation of platforms that went live during the year, including Wisely.ai, and infrastructure upgrades to support platform operations.

Particulars (In INR Cr)	FY26	FY25
Amortisation on Platforms and Software	53	33
Amortisation on Customer Relationship	6	7
Amortisation on Trade Name	2	2
Amortisation on Technology	3	3
Amortisation on Non-compete	1	1
Depreciation on tangible assets and ROU	57	52
Total	122	98

Other Income

Investments include fixed deposits or term deposits with banks, liquid mutual funds, and other savings schemes. Additionally, investments may be made in securities and bonds issued by the central government, provided they carry a minimum rating of AAA. Cash, cash equivalents, and current investments are predominantly held in Indian Rupees and U.S. Dollars. Other income also includes interest received on income tax refund of INR 2 Cr. For further details refer to the Cash and Cash Equivalents section.

Particulars (In INR Cr)	FY26	FY25
Interest income on deposits and liquid funds	34	35
Interest on income tax refund	2	4
Miscellaneous income	1	1
Total	37	40

Profit After Tax

Profit after tax grew by 0.4% YoY to INR 509 Cr in FY26, with a PAT margin of 11.5%. Growth in gross profit was partially offset by higher indirect costs, depreciation, and amortisation during the year. The effective tax rate for FY26 was 19.7% as compared to 19.1% in FY25, primarily reflecting a higher revenue contribution from domestic business during the year.

Particulars (In INR Cr)	FY26	FY25	Change
Profit before tax	634	627	1.1%
Tax expense	(125)	(120)	4.2%
Profit after tax	509	507	0.4%
PAT Margin	11.5%	12.6%	(110 bps)
Effective tax rate	19.7%	19.1%	-

Earnings Per Share

Basic earnings per share grew by 1.6% YoY to INR 38.36 in FY26, driven by growth in absolute profitability and EPS accretion from the reduction in outstanding shares following the buyback completed during the year. Diluted earnings per share stood at INR 38.24.

Particulars (In INR Cr)	FY26	FY25	Change
Profit after tax (INR Cr)	509	507	0.4%
Weighted average basic shares outstanding	13,27,38,636	13,43,43,300	(16,04,664)
Weighted average diluted shares outstanding	13,31,45,925	13,46,11,585	(14,65,660)
Basic earnings per share (INR)	38.36	37.76	1.6%
Diluted earnings per share (INR)	38.24	37.68	1.5%

Consolidated Balance Sheet

In INR Cr, unless otherwise stated	FY26	FY25
Non-current assets
Property, plant and equipment	205	229
Platforms	179	138
Customer relationships	18	24
Brands	0	2
Technology and Software	50	27
Non-Compete	1	1
Intangible assets underdevelopment	50	85
Goodwill	265	265
Capital work in progress	-	5
Right-of-use-lease assets	41	52
Investment property	2	2
Other financial assets	77	36
Deferred tax assets (net)	45	46
Other non-current assets	53	83
Total non-current assets	985	994
Investments	25	120
Trade receivables	988	838
Cash and bank balances	1,064	881
Other Financial assets	527	476
Other current assets	140	30
Total current assets	2,745	2,343
Total Assets	3,730	3,338
Equity and liabilities
Equity share capital	13	13
Other equity	2,475	2,255
Total equity	2,488	2,268
Non-current liabilities
Lease liabilities	42	48
Other financial liabilities	2	1
Provisions	4	3
Total non-current liabilities	48	52
Current liabilities
Trade payables	679	575
Lease liabilities	11	16
Other financial liabilities	436	357
Other current liabilities	24	26
Short term provisions	18	14
Liabilities for current tax (net)	27	30
Total current liabilities	1,194	1,017
Total liabilities	1,242	1,069
Total Equity and liabilities	3,730	3,338

Equity and Liabilities

Tanla has only one class of shares - equity shares at par value of INR 1 each. The authorized share capital of the Company is 20,00,00,000 equity shares. at a par value of INR 1 each. As on March 31, 2026, paid-up share capital at INR 13.26 Cr, compared to INR 13.46 Cr as of March 31, 2025.

Equity share movement is detailed below:

	As on FY26		As on FY25
Particulars	No. of Shares	(In INR)	No. of Shares	(In INR)
Shares outstanding at the beginning of the year	13,46,17,359	13,46,17,359	13,44,59,860	13,44,59,860
Add: Issued and allotted during the year	-	-	1,57,499	1,57,499
Less: Shares bought back during the year	(20,00,000)	(20,00,000)	-	-
Shares outstanding at the end of the year	13,26,17,359	13,26,17,359	13,46,17,359	13,46,17,359

Reserve & Surplus

Particulars (In INR Cr)	FY26	FY25
Capital reserve	7	7
Capital redemption reserve	2	2
General reserve	26	26
Securities premium reserve	17	214
Employee stock options outstanding account	44	15
Retained earnings	2,299	1,951
Foreign currency translation reserve	87	46
Items of other comprehensive income	(7)	(6)
Total	2,475	2,255

Reserves and Surplus

The securities premium reserve decreased by INR 197 Cr to INR 17 Cr as of March 31, 2026, primarily due to buyback of shares for INR 179 Cr and purchase of treasury shares from the market for INR 17 Cr.

The employee stock options outstanding increased by INR 29 Cr to INR 44 Cr as of March 31, 2026, mainly due to the issuance of Restricted Stock Units (RSUs) during the year. For further details, refer to the employee cost section.

The movement in retained earnings reflects a profit of INR 509 Cr generated during the year, offset by a dividend payment of INR 160 Cr to shareholders

Lease Liabilities

As per Ind-AS 116 on lease accounting, leased assets recognition as assets and liabilities is mandated in the lessees financial records. Accordingly, the asset and liability associated with leased office premises of the group companies have been determined and presented within non-current and current assets/liabilities. This classification pertains to values anticipated to occur after one year and within one year, respectively.

Long-Term Provisions

Provisions represent liabilities accrued for leave encashment (INR 4 Cr) and gratuity (INR 17 Cr) payable to employees on retirement, resignation, or superannuation, quantified and charged to expenses at the end of reporting period.

Gratuity liability is managed through a policy held with Life Insurance Corporation of India, to cover the liability as and when the claim arise. Leave encashment represents the accrued liability in accordance with our leave policy, which becomes payable to employees upon retirement, resignation, or superannuation. Both gratuity and leave encashment are accrued based on independent actuarial valuation reports.

Other non-current financial liabilities

Other non-current liabilities consist of security deposits received from customers.

Trade Payables

Trade payables primarily comprise amounts payable for cost of services (to mobile carriers) and other suppliers. As of March 31, 2026, trade payables were INR 679 Cr, compared to INR 575 Cr as of March 31, 2025.

Other Current Financial Liabilities

Other current financial liabilities consist of cost of services not yet billed to the company, payable to capital creditors, unclaimed dividend, amount payable towards corporate social responsibility expenditure and other financial liabilities.

An amount of INR 1 Cr is held within the unclaimed dividend account, representing unpaid dividends to shareholders over the years due to various reasons.

We have instituted appropriate oversight mechanisms through its registrar and secretarial team to manage this liability. In accordance with regulatory requirements, any unclaimed dividend remaining unpaid for seven years from the date of declaration is transferred to the Investor Education and Protection Fund (IEPF) maintained by the central government.

Other Current Liabilities

Other current liabilities consist of statutory liabilities, payable towards GST and TDS. These liabilities are settled with government authorities on a monthly schedule, adhering to specified due dates.

Liabilities for Current Tax

Liabilities for current tax represents tax payable by our Singapore subsidiary and domestic subsidiary operating out of SEZ facility at Hyderabad.

Property, Plant and Equipment

Particulars (In INR Cr)	FY26	FY25
Land	21	21
Buildings	10	11
Leasehold Improvements	56	57
Furniture	23	27
Computers	90	107
Office Equipment	4	5
Vehicles	1	1
Total	205	229

Intangible Assets and Intangible Assets Under Development

The net carrying value of intangible assets is INR 248 Cr as of March 31, 2026. The increase in the net carrying cost during the year was primarily due to the capitalization of Wisely.AI.

Intangible assets under development (IAUD) represent platforms and software currently being developed internally. The associated cost includes salaries, and professional consultancy charges attributable to platform development. As of March 31,2026, IAUD is INR 50 Cr.

(In INR Cr, unless otherwise stated)	FY26	FY25
Platforms	179	138
Customer relationships	18	24
Trade name	0	2
Technology	4	7
Non-compete	1	1
Software	46	20
Total	248	192

Goodwill

Goodwill represents an excess of purchase consideration over the net book value of assets acquired from the subsidiary companies at the time of investment. Goodwill arising from consolidation and acquisition is not amortized but is tested annually for impairment, and any impairment losses, if identified are recognized. The net carrying amount of goodwill is INR 265 Cr.

Goodwill (In INR Cr, unless otherwise stated)	Karix	ValueFirst	Total	Useful life	Impairment/Amortization	Net Carrying Value
Goodwill	185	129	313	-	49	265

Other finanical assets

Particulars (In INR Cr)	FY26	FY25
EMD deposits	3	6
Rental deposits	7	6
Other deposits	3	7
Bank deposits with more than twelve months maturity	54	8
Other financials assets	10	9
Total	77	36

EMD deposits represent security deposits submitted to customers as part of the bidding process for tenders. These deposits are primarily associated with contracts involving PSUs and government agencies.

Deferred Tax Asset

Deferred tax arises on account of the timing differences in depreciation charge between the Income Tax Act and Companies Act and is subsequently reversed in future periods. During the year, deferred tax assets decreased by INR 1 Cr due to the reversal of timing differences on depreciation of assets.

Other Non-Current Assets

Particulars (In INR Cr)	FY26	FY25
Income tax asset- TDS receivable	52	82
Balances with government authorities	0	1
Capital advances	0	0
Total	52	83

Income tax asset will be offset against subsequent years income tax payable.

Trade receivables:

Trade receivables stood at INR 988 Cr as of March 31, 2026.Day sales outstanding (DSO) increased by 06 days to 82 days in FY26.

Cash & Cash Equivalents

Cash, cash equivalents stood at INR 1,144 Cr for the year ended March 31, 2026, Cash, cash equivalents composition is given below.

Particulars (In INR Cr)	FY26	FY25
Restricted cash	62	56
Current account - INR	53	40
Current account - USD	98	81
Fixed deposits	852	704
Fixed deposits with maturity period greater than twelve months and liquid classified under non-current assets	54	8
Liquid investments	25	120
Total	1,144	1,009

Restricted cash are held as margin money deposits given for bank guarantees and cash credit limits. The increase in restricted

cash is attributed to the issuance of bank guarantees for new contracts and participation in RFP. Cash balance in overseas accounts decreased due to working capital investments made towards strategic partnership. Investments in fixed deposits is in line with our investment policy. Independent bank balance confirmation for 100% of cash and investments are obtained by our statutory auditors.

Other Current Finanical Assets

Particulars (In INR Cr)	FY26	FY25
Accrued income	489	447
Interest receivable	25	24
Other receivable	13	5
Total	527	476

Accrued income represents revenue that has been accrued but not yet billed at the end of each month. This is a common industry practice where invoicing occurs in the following month after reconciliation. Accrued income for FY26 is at 11% of revenue. Interest receivable represents the interest that has been accrued on fixed deposits but has not yet been credited to the deposit account by the banks and is recognized under other financial assets.

Liquidity Management

The primary source of our cash, cash equivalents, and current investments is the funds generated from our operational activities. Over the years, these funds have been prudently utilised to support core business operations, drive capital expenditure in line with our growth strategy, and return value to shareholders through dividends and share buybacks. As at 31 March 2026, our cash, cash equivalents, and current investments including fixed deposits and liquid funds were predominantly held in Indian Rupees and U.S. Dollars. In line with our treasury policy, we invest only in instruments rated AAA or equivalent. We are a debt- free company with adequate working capital to meet all operational requirements. Further, we maintain access to additional liquidity through sanctioned credit facilities, ensuring readiness to respond to strategic or operational needs.

Cash flow from operating activities for the year ended 31 March 2026 was INR 574 Cr. Operating cash flows reflect the strong cash generation from business operations, partially impacted by changes in working capital during the year.

Cash used in investing activities for the year ended 31 March 2026 was INR 16 Cr, primarily utilised for capital investments related to platform development and infrastructure upgrades. In FY26, free cash flow was INR 477 Cr, representing 94% of PAT.

Particulars (In INR Cr)	FY26	FY25
Operating cash flow	574	642
Capital expenditure	(97)	(128)
Free cash flow	477	514

Cash used in financing activities for the year ended 31 March 2026 was INR 375 Cr, reflecting dividend payouts of INR 160 Cr and buyback of shares of INR 179 Cr in line with the capital allocation policy.

Particulars (In INR Cr)	FY26	FY25
Net cash flow from operating activities	574	642
Net cash flow from investing activities	(16)	(220)
Net cash flow from financing activities	(375)	(208)
Net increase in cash and cash equivalents	183	214
Cash and cash equivalents at the beginning of the year	1,009	881
Cash and cash equivalents at the end of the year	1,144	1,009

Cash flow walk from FY25 to FY26

Financial ratios:

Following are ratios for the current financial year and their comparison with the preceding financial year, along with explanations where the change has been 25% or more.

Particulars	FY26	FY25	Change %	Explanation
Current ratio	2.3	2.3	(0.3%)	NA
Debt-equity ratio	NA	NA	NA	NA
Debt Service Coverage ratio	NA	NA	NA	NA
Return on equity ratio	23.0%	28.0%	(17.9%)	NA
Trade receivables turnover ratio	4.84	4.79	0.9%	NA
Trade payables turnover ratio	5.89	5.26	12.0%	NA
Net capital turnover ratio	2.85	3.04	(6.1%)	NA
Net profit ratio	11.5%	12.6%	(8.5%)	NA
Return on capital employed	24.2%	26.2%	(7.5%)	NA
Return on investment	3.8%	3.4%	10.8%	NA

Internal Control Systems and Their Adequacy

The Company maintains an internal financial control framework designed to provide reasonable assurance that financial statements are reliable, assets are safeguarded, and the business operates in accordance with applicable laws, regulations, and internal policies.

The framework is aligned with the Internal Control — Integrated Framework (2013) issued by COSO, which provides a structured approach to identifying risks, designing control responses, and maintaining accountability across the organisation. Controls have been defined and implemented across the entirety of the value chain, addressing individual processes and sub-processes to ensure alignment with the Companys strategic, operational, financial, and compliance objectives.

This encompasses adherence to Company policies, prevention and detection of frauds and errors, accuracy and completeness of accounting records, and timely preparation of reliable financial information. During the year, an independent evaluation of the effectiveness of internal financial controls was conducted by an external consultant, the findings of which were reviewed by management and presented to the Audit Committee for deliberation and oversight.

M/s. Deloitte Touche Tohmatsu India LLP served as Internal Auditor for FY26, conducting quarterly audits across key business processes in accordance with an annual audit plan approved by the Audit Committee and developed in consultation with the Statutory Auditor. The Audit Committee reviewed internal audit reports each quarter and monitored corrective actions through a structured action taken tracker. The Audit Committee Chair also held independent meetings with the Internal Auditor and the Statutory Auditor during the year. M/s. Ernst and Young LLP has been appointed as Internal Auditor with effect from FY27. The Statutory Auditors, M/s. MSKA & Associates, have issued an unqualified opinion on the adequacy and operating effectiveness of the Companys internal financial controls over financial reporting as at 31 March 2026, under Section 143 of the Companies Act, 2013.

Based on its evaluation under Section 177 of the Companies Act, 2013 and Regulation 18 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Audit Committee has concluded that as at 31 March 2026, the Companys internal financial controls are adequate and operating effectively.

Risk Management

The Company maintains a structured approach to identifying, assessing, and mitigating risks across its operations and strategic priorities. The framework covers key risk categories including market dynamics, technology and platform risks, regulatory developments, cybersecurity and data protection, and foreign exchange exposure. The Company has constituted a Risk Management Committee to oversee the risk management framework, which works in conjunction with the Audit Committee and the Board in reviewing and monitoring the risk landscape. Risks are prioritised through a risk-based action matrix, with periodic reviews undertaken by the Risk Management Committee. For further details, refer to the Risk Management section of this Integrated Report.

People

At Tanla, our people philosophy is anchored on building capabilities, fostering a high-performance culture, and enabling sustainable growth through deliberate investments in talent.

Over the past three years, we have evolved a structured people architecture. The 3Cs Framework (Capability, Competency, and Culture) established a common foundation, GROW (Grit, Reimage, Onwards Growth, Win with Customer) aligned our people practices with business outcomes, and Tanla Foundry introduced five operating values - Innovation, Impact, Excellence, Ownership, and Speed — that define how we work and translate our aspirations into action.

Together, these frameworks shape our approach to hiring, development, engagement, and performance. For further details, refer to the Human Capital section of this Integrated Report.