Tanla Platforms Q3 Results: Key Numbers & Takeaways
Tanla Platforms Ltd saw its stock plunge over 7% on January 22, 2025, hitting a 52-week low of ₹617.30 after its Q3 FY25 earnings report. Investors reacted negatively to the company’s 15.4% decline in net profit, alongside revenue stagnation and the announcement of the sale of its subsidiary, Gamooga Softtech.
Despite the earnings slump, the company remains cash-rich with no debt, holding a cash balance of ₹921 crore. It also declared an interim dividend of ₹6 per share for FY 2024-25.
Let’s dive into the financials, the market reaction, and what this means for Tanla Platforms going forward.
Also read: Zomato shares fall 9% on Blinkit’s expansion pressure in Q3 FY25
Q3 FY25 Financial Performance: A Closer Look
Revenue & Profit Trends
Tanla Platforms reported flat revenue growth and a significant drop in profitability:
| Metric | Q3 FY25 | Q3 FY24 | YoY Change |
| Revenue from Operations | ₹1,000.4 Cr | ₹1,002.6 Cr | ▼ 0.2% |
| Net Profit (PAT) | ₹118.5 Cr | ₹140.1 Cr | ▼ 15.4% |
| EBITDA | ₹163.4 Cr | ₹192.9 Cr | ▼ 15.3% |
| EBITDA Margin | 16.30% | 19.20% | ▼ 2.9% |
The company’s profit after tax (PAT) margin fell to 11.8%, as operational expenses increased 3.3% YoY to ₹863.05 crore.
Investor sentiment remained weak as the company’s revenue growth remained flat while profitability continued to decline.
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Stock Market Reaction: 7% Drop & 52-Week Low
Tanla Platforms’ share price opened at ₹650.95, down 2% from its previous close of ₹664.80. The stock then slid further to an intraday low of ₹618.05, marking a 7% drop and hitting a 52-week low.
Tanla Platforms Share Price Movement on January 22, 2025
| Opening Price | Intraday Low | Previous Close | Change (%) |
| ₹650.95 | ₹618.05 | ₹664.80 | ▼ 7% |
The stock has been on a downward trend, losing 43.57% in the past year and 31.48% in the last six months.
How does this compare to the broader market?
While Tanla’s stock has underperformed, the BSE Sensex fell just 5% in the last six months but gained 6% over the past year, highlighting Tanla’s underperformance relative to the market.
Dividend Announcement: ₹6 Per Share Payout
Despite weak financials, the company announced an interim dividend of ₹6 per share (600%).
| Dividend Details | Value |
| Dividend per Share | ₹6 |
| Face Value of Share | ₹1 |
| Record Date | January 27, 2025 |
| Payout Date | On or before February 20, 2025 |
This move is expected to provide some relief to long-term investors, though it failed to offset the negative earnings impact in the short term.
What Led to the Drop? Key Factors Behind the Market Reaction
- Profit Decline: The 15.4% YoY drop in PAT signaled weaker profitability despite a steady revenue stream.
- Flat Revenue Growth: Revenue from operations remained almost unchanged YoY, raising concerns about business momentum.
- EBITDA Margin Compression: Margins dropped from 19.2% to 16.3%, indicating higher operational costs.
- Subsidiary Sale (Gamooga Softtech): Investors reacted negatively to the decision to offload a 100% stake in Gamooga Softtech, a wholly owned subsidiary of Tanla’s other subsidiary, Karix Mobile.
The market likely interpreted these factors as weak operational performance and a potential slowdown in future earnings growth.
Tanla Platforms’ Strengths: Cash Reserves & Debt-Free Status
While the earnings report disappointed investors, Tanla Platforms still holds strong financial fundamentals:
Debt-Free Balance Sheet: The company has zero debt, giving it financial stability.
Robust Free Cash Flow: Reported ₹217 crore in free cash flow, ensuring liquidity.
Strong Cash Reserves: Holding ₹921 crore in cash, providing a cushion against downturns.
This financial stability could support future growth if the company successfully improves revenue and margins in upcoming quarters.
You may also read: Paytm Q3 Results: Lower Net Loss but Revenue Decline
What’s Next for Tanla Platforms?
While the Q3 FY25 results raised concerns, the company’s cash-rich position and strategic adjustments could shape its future growth trajectory.
Key Factors to Watch
Revenue Growth: Can the company break out of its flat revenue trend?
Profitability: Will cost control measures improve EBITDA and net profit margins?
Stock Performance: Will investors regain confidence as the company navigates these challenges?
With strong financial reserves and no debt, Tanla has the flexibility to navigate market challenges. However, the stock’s recent performance reflects concerns about earnings pressure, making upcoming quarters critical for investor sentiment.
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Final Thoughts
Tanla Platforms’ 7% stock decline post-Q3 earnings highlights investor concerns about falling profits, weak revenue growth, and margin compression.
However, its cash-rich, debt-free status provides resilience, and the ₹6 per share dividend offers some reassurance.
The real question now: Can Tanla regain investor confidence with stronger revenue growth and profitability in upcoming quarters?
Stay tuned as the company navigates these financial hurdles while maintaining its strong balance sheet position.
