Tanla Platforms Q1 FY27 Results (NSE: TANLA)
Signal: Margin pressure
The read
Consolidated revenue growth accelerated to 17.8% YoY (from 12.1% in Q3FY26 and 7.7% in Q2FY26), marking a clear inflection after three quarters of sub-10% growth. However, OPM contracted 130bps YoY to 16.3%, the 6th quarter in the last 7 with margin compression, as cost of services rose faster than revenue. PAT grew 20.1% YoY, marginally ahead of operating profit, supported by lower finance costs. The standalone entity remains a cash treasury vehicle, not reflective of operating performance.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,226.39 Cr | 17.8% | 4.1% |
| EBIT | ₹181.28 Cr | 23.0% | |
| Net profit | ₹142.17 Cr | 20.1% | |
| EPS | ₹10.77 | 22.1% | |
| EBIT margin | 16.3% |
P&L walk
Revenue grew 17.8% YoY (4.1% QoQ) to ₹1,22,639 lakh, driven by higher volume/service delivery. Cost of services grew 15.4% YoY but outpaced revenue as % of revenue, rising 270bps YoY to 73.4%, compressing OPM 130bps to 16.3%. Employee cost rose 20.0% YoY but as % of revenue eased 30bps. Other expenses surged 67.0% YoY, adding 110bps to the cost structure. Depreciation rose 21.1% YoY, stable as % of revenue. Finance cost declined 18.9% YoY. Other income grew 17.4% YoY. Effective tax rate at 21.5% vs 19.0% a year ago. PAT grew 20.1% YoY, slightly ahead of operating profit growth due to lower finance cost.
Key positives
- Revenue growth accelerated to 17.8% YoY, the highest in 6 quarters, confirming demand recovery.
- PAT grew 20.1% YoY, in line with revenue growth, indicating no further margin erosion sequentially.
- EPS grew 22.1% YoY to ₹10.77, with no dilution post-buyback.
Key concerns
- OPM compressed 130bps YoY to 16.3%, continuing a multi-quarter trend of margin pressure from rising cost of services.
- Cost of services as % of revenue rose 270bps YoY to 73.4%, signalling either input cost inflation or shift to lower-margin product mix.
- Other expenses surged 67.0% YoY to ₹4,389 Lakh, adding 110bps to the cost structure — driver not disclosed in filing.
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