Why Tanla Platforms Share Price is Rising

The Indian stock markets are trading in the red today, 12 June. At the time of writing, the Nifty 50 index is around 25,091, down 49 points. The BSE Sensex is trading near 82,342 , down 171 points.

The Nifty Pharma index was the only sector gaining, up roughly 1%. The Nifty IT index saw a decline by around 1.2%.

But one stock that is rising in trade today is Tanla Platforms.

Let's see the reasons for the same.

#1 Buyback of Shares

Tanla Platforms shares rose sharply following the announcement of a board meeting to consider a share buyback. The board of the company will meet on 16 June for the purpose.

Investors remained optimistic on the buyback price given that the previous buybacks in 2020 and 2022 were executed at Rs 1,200 per share. The current share price of Rs 692 has triggered optimism that the buyback price would be good.

This is one of the reasons for a rally in the stock. The date and price of the buyback is likely to be made known after the board meeting on 16 June.

As of 31 March 2025, the company has sizeable cash and cash equivalents to the tune of Rs 10 billion (bn), which would be helpful for the buyback.

#2 Mutual Funds Hike Stake

While this not have been an immediate reason to trigger gains in the stock, mutual funds have hiked their stake in the company.

Mutual Funds which held a stake of 0.44% in December 2024, have increased their stake to 0.75% by March end 2025. Mutual funds are selective when investing and any hike in their stake is viewed positively by investors.

What Next?

Tanla Platforms has not been having the best time in terms of financial performance.

The net profit has been dropping for the last few quarters. The company reported a net profit of Rs 1,173 m for Q4 FY25 against Rs 1,302 m in the corresponding period of last year.

Despite this, in FY25 the company delivered 2.5% revenue growth, and generated over Rs 5 bn in free cash flow. Tanla Platforms also crossed the Rs 10 bn milestone in cash reserves.

It has returned Rs 8 bn to shareholders over the past five years through dividend and buybacks.

Moving ahead, Tanla Platform's MaaP platform has started to scale substantially over the last few quarters. It has reached a monthly volume of 2 bn messages with over 50+ enterprises. The company has also signed two contracts with telecom companies outside India for MaaP.

The company is now seeing growth in its WhatsApp businesses. Tanla Platforms rolled out WhatsApp-led engagement across three high-impact use cases for different sectors.

It had 5 m plus cumulative interactions across all campaigns. The OTT business which saw good growth in FY25 is also expected to drive the company's business.

How Shares of Tanla Platforms have Performed Recently

Over the last one month, the share price of Tanla Platforms has gained 39% from levels of Rs 494.75 to the current levels of Rs 687.9. In the past one year, shares of the company has lost 28.3%.

The stock hit a 52-week high of Rs 1,086.05 on 15 July 2024. The stock also hit a 52-week low of Rs 409.4 on 3 March 2025.

About Tanla Platforms

Tanla Platforms specialises in cloud communications technology.

The company is a leading global provider of A2P (application-to-person) messaging services.

It offers a broad portfolio of solutions including CPaaS (Communications Platform as a Service), telecom signalling, SMSC, direct operator billing, premium SMS billing, cloud telephony, and advanced messaging channels like WhatsApp Business Messaging, RCS (Rich Communication Services), and OTT platforms.

Tanla Platforms also focuses on communication security and fraud prevention through products such as Wisely ATP, an AI/ML-based anti-SMS phishing platform, and Trubloq, a blockchain-enabled secure messaging platform.

The company is embracing emerging technologies such as Generative AI to enhance its communication platforms, aiming to reshape digital interactions via intelligent, AI-native solutions.

To know more, check Tanla Platforms fact sheet and latest quarterly results. You can also compare Tanla Platforms with its peers on our website.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...