Tanla Platforms - Q4 FY26 Result Analysis
-Revenue: ₹1,177.54 Cr. Up 15.0% YoY.
-EBITDA margin: 16.3%. Up 30 bps YoY, down 70 bps QoQ.
-PAT: ₹134.32 Cr. Up 14.5% YoY.
Q4 was the strongest revenue quarter of FY26. And yet EBITDA was flat sequentially despite 5% more revenue. That gap is the story.
The full year tells it plainly. Revenue grew 9.7%. Expenses grew 11.0%. PAT grew 0.4%. The business grew - the cost structure grew faster.
Three lines drove that cost inflation. Employee costs were up 24.1% YoY, partly from RSU amortisation on the ValueFirst acquisition. Depreciation was up 25.0% YoY from capitalised intangibles. Other expenses were up 36.6% YoY. The one bright spot: cost of services grew 8.9% - slower than revenue, so gross margin expanded 50 bps for the full year to 26.6%. That improvement was entirely swallowed by the lines above it.
The EBITDA target for FY26 was ~₹750 Cr. Actual: ₹723.75 Cr. Management had flagged two specific headwinds - gaming sector revenue softness and removal of Meta WhatsApp incentives. Both showed up in Q4: gross margin fell 60 bps QoQ, EBITDA margin fell 70 bps QoQ from Q3's peak of 17.0%.
Cash flow is the clear positive. FCF for FY26 was ₹476.54 Cr. CFO/PAT: 1.13x. Cash and bank balances on the balance sheet: ₹1,063.63 Cr. Zero debt. The company returned ₹179 Cr via buyback and ₹160 Cr in dividends during the year. The balance sheet is in good shape even if the P&L isn't.
Two things to watch heading into FY27. First, the Chief Growth Officer and Chief AI Officer both resigned in April 2026 - key roles for a company trying to pivot toward AI-driven platform services. Second, a ₹46.90 Cr tax demand on the Karix acquisition is being contested; the seller bears this under the acquisition agreement, so financial impact is limited, but it adds noise.
Note : This is not an investment advise.