Shareholder letter
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Q2 FY27 Shareholders’ Letter and Results Protecting every digital citizen!
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Financial Performance Message from Chairman Management Discussion Q&A Quarterly Disclosures Policies Deep-Dive Charts 03 04 09 11 18 22 Table of Contents
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3 Shareholder Report Q2 FY27 Digital Platforms Enterprise Communications Revenue ₹1,047 Mn 1.6% QoQ and 6.4% YoY Revenue ₹12,470 Mn 11.0% QoQ and 27 .2% YoY Gross Profit ₹1,033 Mn 1.7% QoQ and 6.5% YoY Gross Profit ₹2,498 Mn 11.2% QoQ and 31.6% YoY EBITDA ₹820 Mn 78.6% Margin EBITDA ₹1,323 Mn 10.7% Margin Financial Performance Q2 FY27 Revenue ₹13,517 Mn 10.2% QoQ and 25.3% YoY Gross Profit ₹3,531 Mn 8.2% QoQ and 23.1% YoY EBITDA ₹2,143 Mn 6.6% QoQ and 20.8% YoY PAT ₹1,464 Mn 3.0% QoQ and 17 .1% YoY EPS ₹11.09 Per Share 3.0% QoQ and 17 .7% YoY Cash and Cash equivalents1 ₹14,47 4 Mn • ValueFirst Overseas Acquisition: Tanla completed the acquisition of ValueFirst’s overseas business, strengthening its international presence. • Panel Discussion at London Business School: Tanla and London Business School hosted a panel discussion on Trust in an AI-driven Digital Economy, bringing together leaders from industry, regulation and academia. • Fast Company: Tanla ranked #8 on Fast Company’s Best Workplaces for Innovators 2026 list, recognising its culture of innovation. • BIG Sustainability Awards 2026: Tanla received the Sustainability Leadership Award, recognising its commitment to responsible and sustainable business practices. • Global Fintech Fest 2026: Karix showcased its AI-powered customer engagement solutions, highlighting the role of AI and trust in transforming enterprise communications. Significant Events We delivered another strong quarter with double-digit growth across all key financial metrics. Our Enterprise Business grew 27 .2% YoY , reflecting the strength of our customer relationships and competitive position. With over 14,400 Mn in cash and a debt- free balance sheet, we are well positioned to pursue our growth ambitions while maintaining financial discipline. - Uday Reddy, Founder Chairman & CEO 1. Cash balance includes liquid funds which are held as investments and fixed deposits having a maturity period of greater than twelve months
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4 Shareholder Report Q2 FY27 “Dear Shareholders, As we enter the festive season, I wish you and your families a very Happy Diwali. Tanla delivered another strong quarter, extending the growth momentum we have sustained over the past six quarters. Our performance reflects the strength of our business, deeper customer relationships and consistent execution. Revenue grew 25.3% YoY and 10.2% QoQ, gross profit increased 23.1% YoY and 8.2% QoQ, and EBITDA grew 20.8% YoY and 6.6% QoQ. Our revenue retention of 119% reflects continued expansion within our existing customer relationships. Our financial position remains strong. We generated ₹2,316 Mn in free cash flow during the quarter and closed with ₹14,47 4 Mn in cash and zero debt. The Board has declared an interim dividend of ₹6 per share. Enterprise Business - Sustaining Market-Leading Growth Our Enterprise Business delivered 27 .2% YoY revenue growth, continuing to outpace the Indian enterprise communications industry. This performance reflects our strong competitive position, deep customer relationships and ability to capture opportunities across communication channels. Our scale, telecom partnerships and execution capabilities continue to differentiate us in the market. We are particularly encouraged by the momentum among our large enterprise customers. Our ₹500 Mn-plus customer cohort grew 11% QoQ, reflecting the growing depth of our customer relationships. WhatsApp continues to be a significant growth driver, with strong enterprise adoption of conversational communication. During the quarter, we completed the acquisition of ValueFirst’s international operations, expanding our presence in the Middle East and Southeast Asia. The acquired business contributed ₹285 Mn in revenue from two months of consolidation. Our priority is to integrate these operations effectively, deepen customer relationships and build a stronger, more profitable international business. MESSAGE FROM THE CHAIRMAN
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5 Shareholder Report Q2 FY27 While revenue and gross profit growth remain strong, improving operating leverage continues to be a priority. EBITDA growth was also impacted by the consolidation of ValueFirst’s international operations, which currently operate at lower profitability levels. Platform Business - Progress and Priorities Our Platform Business grew 6.4% YoY , below our expectations. The prolonged delay in the regulatory implementation of India’s consent framework has affected the anticipated commercial rollout and growth of our Consent platform. We have continued investing in the platform and remain positioned to respond as the regulatory framework progresses. Meanwhile, Wisely.ai continues to demonstrate the impact of AI-powered intelligence through its deployment at Indosat in Indonesia. The platform has helped protect millions of consumers from spam and scams, demonstrating its effectiveness at scale. This initiative has also attracted academic interest, including a case study at London Business School, with participation from members of our leadership and Board. Our focus remains on accelerating platform adoption, strengthening commercial execution and translating technology investments into sustainable revenue and gross profit growth. AI and the Future of Communications The global communications industry is entering an important phase of transformation. AI is changing how enterprises engage with customers, automate interactions and deliver personalised experiences. We believe the next phase of industry growth will increasingly be shaped by intelligence, identity, security and trusted customer engagement, alongside traditional communications infrastructure. For Tanla, this evolution presents a meaningful opportunity. Our established enterprise relationships, telecom partnerships and experience in large-scale communications technology provide a strong foundation to participate in this transformation. Our ambition is to create differentiated solutions that deliver measurable customer value and contribute to sustainable, profitable growth. Looking Ahead As we enter the second half of FY27 , I am encouraged by the momentum in our Enterprise Business, our strengthening competitive position and the long-term opportunities emerging from AI and intelligent communications. Our priorities are clear sustain growth ahead of the market, expand margins, accelerate platform commercialisation and maintain strong cash generation. With six quarters of sustained growth, a debt-free balance sheet and strong customer relationships, we have a solid foundation for the next phase of Tanla’s growth. Thank you for your continued trust and support.” Uday Reddy Founder Chairman & CEO
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7 Shareholder Report Q2 FY27 Case Study From Telecom to Banking: Wisely.ai Scales Scam Protection After protecting over 100 million users in Indonesia, Tanla’s Wisely.ai has protected 21 million customers of one of India’s top-5 private-sector banks, blocking 91 million scam messages in FY26. Introduction A leading private-sector bank, among India’s top-5 by market capitalization, serves around 55 million customers through a pan-India retail, corporate and SME franchise. Its scale made it a prime target for impersonation. In FY26, the bank deployed Tanla’s Wisely.ai to stop impersonation scams before they reached customers. The Challenge Scammers impersonated the bank at scale, using spoofed sender IDs to send fake cashback offers, loan approvals and reward-point redemptions by SMS. These messages routed customers to look-alike phishing pages built to harvest banking credentials. Every scam cost customers money and trust, and eroded the bank’s brand equity. Scale 91M scam messages blocked 21M customers protected (38% of base) 30-40% fewer smishing complaints within 6 months <0.2% false positives Protecting Bank Customers from Scams at National Scale How Tanla’s Wisely.ai stopped smishing (SMS phishing) at the source for a leading private-sector bank
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8 Shareholder Report Q2 FY27 Key Results In FY26, Wisely.ai also: • Identified and blocked 3.2 million fraudulent links • Flagged 1.2 million scammer numbers and accounts for blocking and regulatory action • Tracked and neutralized 15 distinct scam patterns • Delivered an estimated ₹360+ crore in annual economic impact from fraud losses prevented and customer revenue retained The Solution: Detect → Drop → Take Down Scam messages Phishing links and sender accounts Fraud response Genuine bank messages Conclusion With scams stopped before delivery and their infrastructure taken down, the bank now protects both its customers and its brand at national scale. The deployment extends Wisely.ai from telecom into banking, showing that the same platform can identify the scam, protect the user and eliminate the scammer in both. Delivered to customers’ inboxes Reused across SMS, WhatsApp and other channels Reactive, incident by incident Risk of being blocked by blunt filters Dropped in under 50ms, before delivery First line of defense Customer vigilance Real-time AI detection at the messaging layer Taken down, typically within hours, 24 hours at most Proactive, at the source Delivered without disruption (under 0.2% false positives) Key Changes Driven by Wisely.ai Area Before Wisely.ai After Wisely.ai Wisely.ai is a real-time, AI-native anti-scam and smishing protection platform that sits at the messaging layer: Detect: Every inbound SMS and message analyzed in under 50ms, combining reputation signals, semantic analysis and call-to-action detection for suspicious URLs, mobile numbers and email IDs. Drop: Scam and impersonation messages dropped before they reach the customer, removing the need for customer vigilance as the first line of defense. Take down: Impersonation URLs and fraudulent sender accounts taken down through partnerships with iZOOlogic, Google and Meta (WhatsApp), typically within hours, 24 hours at most. This solution has shifted us from reacting to fraud incidents to proactively preventing them. The platform's accuracy and stability give our team the confidence to run it at national scale without disrupting genuine customer communication. — SVP, Fraud Risk Intelligence, a leading private-sector bank
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9 Shareholder Report Q2 FY27 Q1 Can you summarise overall financial performance in Q2 FY27? We delivered double-digit YoY growth across all our key financial metrics, with revenue, gross profit and EBITDA growing by more than 20%. More importantly, the quarter reflects the strength of our underlying business, with growth in existing customers continuing to drive performance. Revenue grew by 10.2% QoQ and 25.3% YoY to ₹13,517 Mn. Of the 10.2% QoQ revenue growth, 7 .9% came from our existing business, while the inorganic contribution was 2.3%. The quarter also benefited from one-time campaigns from select customers. Our OTT contribution to overall revenue is at 36.2% in Q2 FY27 . Gross profit grew by 8.2% QoQ and 23.1% YoY to ₹3,531 Mn, with a gross margin of 26.1%. Gross profit grew by ₹269 Mn QoQ and ₹662 Mn YoY due to revenue growth, partially offset by a 48bps contraction in gross margin in both periods. Sequential gross margin contracted by 48 bps due to a change in revenue mix, with a higher contribution from the Enterprise business. EBITDA grew by 6.6% QoQ and 20.8% YoY to ₹2,143 Mn, with an EBITDA margin of 15.9%. Sequential EBITDA increased by ₹132 Mn, driven by higher gross profit of ₹269 Mn and offset by higher indirect costs of ₹137 Mn, of which ₹60 Mn relates to the newly acquired VF overseas business. YoY EBITDA increased by ₹369 Mn, driven by higher gross profit and offset by higher indirect expenses. PAT grew 3.0% QoQ and 17 .1% YoY to ₹1,464 Mn. Sequential and YoY growth was driven by higher EBITDA, partly offset by higher depreciation and amortisation, including amortisation of intangible assets recognised on acquisition, and lower other income. We generated ₹2,316 Mn in free cash flow (158% of PAT), during the quarter and closed with ₹14,47 4 Mn in cash and zero debt. Q2 Can you share an update on the acquisition of the ValueFirst International business? We completed the acquisition of ValueFirst International during the quarter, with the business consolidated in Q2 FY27 results. It contributed ₹285 Mn in revenue for two months, representing 2.3% of contribution to overall growth. Q3 How is Digital Platforms performing, and what are the growth opportunities? Digital Platforms revenue grew by 1.6% QoQ and 6.4% YoY to ₹1,047 Mn. It contributed 7 .7% of overall revenue in Q2 F Y 2 7. Existing telecom and banking deployments of Wisely. ai provide a base to pursue similar opportunities with additional customers and across new geographies. Our focus remains on accelerating platform adoption and strengthening commercial execution to convert the pipeline into sustainable revenue and gross profit growth. Q4 What is driving growth in Enterprise Communications? Enterprise Communications revenue grew 11.0% QoQ and 27 .2% YoY to ₹12,470 Mn, continuing to outpace the Indian enterprise communications industry. WhatsApp was a key growth driver, with volumes doubling both QoQ and YoY across customer segments. This broad-based momentum reflects a shift in enterprise communication spend towards WhatsApp, with customers allocating a higher share of their communication budgets to the channel. RCS was a partial offset to growth. With significant pricing changes effective September 2026, adoption at the higher price point will depend on delivering better engagement and conversion for enterprises commensurate to the change. Revenue from new customer additions was ₹65 Mn in Q2 FY27 , contributing to overall business growth. Gross profit grew 11.2% QoQ and 31.6% YoY to ₹2,498 Mn, ahead of revenue growth on a YoY basis. Our priorities remain focused on acquiring new customers across domestic and international markets, expanding wallet share within existing customers, and increasing adoption of omnichannel solutions. Q5 How did customer cohorts perform in Q2 FY27? Customer cohorts are based on annualised revenue calculated using quarterly revenue. Growth was driven by higher wallet share within the existing customer base. Customers generating revenue above ₹10 Mn grew 10.1% QoQ and 24.1% YoY to ₹12,997 Mn. The >₹500 Mn cohort grew 42.5% YoY , contributing nearly 43% of total revenue, with BFSI customers driving growth. Deep-Dive Chart Management Discussion
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10 Shareholder Report Q2 FY27 The ₹100-₹500 Mn cohort grew 4.8% QoQ and 10.8% YoY , while the ₹10-₹100 Mn cohort grew 19 .0% QoQ, includes ValueFirst’s overseas customers. Of the previous year’s top 20 customers, 12 remained in the top 20 in Q2 FY27 , while the remaining eight ranked within the top 30. Q6 What drove the increase in indirect expenses, and how did it impact EBITDA growth? Indirect expenses increased by ₹137 Mn QoQ, including ₹60 Mn attributable to ValueFirst’s overseas operations. The remaining ₹77 Mn increase was primarily driven by higher employee costs, marketing spends, travel and other general expenses, partly offset by lower forex costs. Marketing spends are typically higher in Q2/Q3 each year, driven by participation in key industry events such as Global Fintech Festival (GFF) and India Mobile Congress (IMC). Indirect costs increased by 26.9% YoY , while costs for the existing business grew by 21.3%, primarily due to higher spends on employee cost, marketing, travel, professional and legal spends. Employee costs increased by 14.5% YoY , due to annual increments and net additions. Disciplined investments in Innovation and GTM team will continue. EBITDA grew 6.6% QoQ and 20.8% YoY to ₹2,143 Mn. EBITDA growth was impacted by the consolidation of ValueFirst’s international operations, which currently operate at lower profitability levels. We remain focused on improving operating efficiency, business mix and profitability as we scale. Q7 On sequential basis, there seems to be sharp increase in Depreciation and Amortization. Can you provide some insights on the movement? Depreciation and amortisation grew by 13.6% QoQ and 25.9% YoY to ₹373 Mn. The sequential increase of ₹45 Mn was primarily attributable to ₹22 Mn of amortisation of intangible assets recognised on acquisition and ₹18 Mn of depreciation on additions to leasehold improvements. Q8 What explains the PAT performance in Q2 FY27? PAT grew 3.0% QoQ and 17 .1% YoY to ₹1,464 Mn in Q2 FY27 . Sequential PAT growth was driven by higher EBITDA, partly offset by higher depreciation and amortisation, and lower other income. Other income decreased by ₹20 Mn QoQ, as Q1 FY27 included one- time interest income of ₹34 Mn on income tax refunds. ETR was 21.8%. Q9 How was cash flow performance during the quarter, and what is the current cash and liquidity position? Cash generation remained strong in Q2 FY27 , with cash generated from operations of ₹2,593 Mn, representing 121% of EBITDA. Free cash flow stood at ₹2,316 Mn after capex of ₹277 Mn, representing 158% of PAT. Cash balance increased by ₹2,504 Mn QoQ to ₹14,47 4 Mn including fixed deposits and investments in Q2 FY27 . DSO declined by 16 days, to 63 days in Q2 FY27 , reflecting improved working capital efficiency. The company remains debt-free, providing financial flexibility to fund growth investments while returning cash to shareholders. The Board has declared an interim dividend of ₹6 per share, amounting to a total payout of ₹796 Mn. Deep-Dive Chart Deep-Dive Chart Deep-Dive Chart Deep-Dive Chart Deep-Dive Chart
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11 Shareholder Report Q2 FY27 Annexure- 1 Quarterly Disclosures (In ₹ Mn, unless otherwise stated) Three months ended Sep 30 (Unaudited) Six months ended Sep 30 (Unaudited) Q2 FY27 Q2 FY26 H1 FY27 H1 FY26 Revenue from operations 13,517 10,785 25,781 21,191 Gross profit 3,530 2,868 6,792 5,475 Gross margin 26.1% 26.6% 26.3% 25.8% EBITDA 2,143 1,775 4,154 3,414 EBITDA margin 15.9% 16.5% 16.1% 16.1% EBITDA/Gross profit 60.7% 61.9% 61.2% 62.4% EBIT 1,770 1,478 3,452 2,846 EBIT margin 13.1% 13.7% 13.4% 13.4% Other Income 120 89 262 209 Profit after tax 1,464 1,250 2,886 2,435 Profit after tax margin 10.8% 11.6% 11.2% 11.5% Free cash flow 2,316 1,645 3,575 1,337 Earnings per share (In INR) 11.09 9 .43 21.86 18.24 Cash and Cash equivalents 14,47 4 8,814 14,47 4 8,814 ROCE - (Including CCE) 26.5% 25.6% 33.8% 24.6% DSO days 63 77 66 84 Average number of employees 1,081 1,004 1,081 1,003
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12 Shareholder Report Q2 FY27 CONDENSED CONSOLIDATED INCOME STATEMENT (In ₹ Mn, unless otherwise stated) Three months ended Sep 30 (Unaudited) Six months ended Sep 30 (Unaudited) Q2 FY27 Q2 FY26 H1 FY27 H1 FY26 Revenue from operations 13,517 10,785 25,781 21,191 Cost of services 9,9 8 7 7 ,917 18,989 15,717 Gross profit 3,530 2,868 6,792 5,475 Indirect expenses 1,387 1,093 2,638 2,061 EBITDA 2,143 1,775 4,154 3,414 Depreciation (373) (297) (702) (568) EBIT 1,770 1,478 3,452 2,846 Finance cost (17) (12) (28) (26) Other income 120 89 262 209 Profit before tax 1,873 1,555 3,686 3,029 Tax expenses 409 305 800 595 Profit after tax 1,464 1,250 2,886 2,435 Earnings per share (In ₹ ) 11.09 9 .43 21.86 18.24 CONDENSED CONSOLIDATED BALANCE SHEET (In ₹ Mn, unless otherwise stated) Sep 30,2026 (Unaudited) Jun 30,2026 (Unaudited) ASSETS Property, plant and equipment 1,952 2,018 Platforms 1,700 1,7 45 Customer Relationships 803 171 Brands (4 ) (0 ) Non-Compete 25 7 Technology & Software 461 455 Intangible assets under development 662 593 Goodwill 3,552 2,646 Right-of-use-lease assets 611 375 Capital work in progress 1 - Investment Property 16 16 Financial assets 4,308 459 Deferred tax assets (net) 486 466 Other non-current assets 255 207 Total non-current assets 14,828 9 ,158 Trade receivables 9 ,243 10,718
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13 Shareholder Report Q2 FY27 Investments 1,209 259 Cash and bank balances 9 ,124 11,488 Other Financial assets 5,397 5,012 Other current assets 1,718 1,453 Total current assets 26,691 28,930 TOTAL ASSETS 41,519 38,088 EQUITY AND LIABILITIES (In ₹ Mn, unless otherwise stated) Sep 30,2026 (Unaudited) Jun 30,2026 (Unaudited) EQUITY AND LIABILITIES Equity share capital 133 133 Other equity 27 ,091 25,441 Total equity 27 ,224 25,573 Non current liabilities Financial Liabilities Lease liabilities 643 391 Other financial liabilities 21 19 Provisions 41 38 Total Non Current Liabilities 705 448 Current liabilities Financial Liabilities Trade payables 7 ,267 6,614 Lease liabilities 106 106 Other financial liabilities 5,253 4,383 Other current liabilities 217 278 Short term provisions 157 181 Liabilities for current tax (net) 589 505 Total Current liabilities 13,590 12,067 TOTAL EQUITY AND LIABILITIES 41,519 38,088
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14 Shareholder Report Q2 FY27 CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY (In ₹ Mn, unless otherwise stated) Share capital Reserves Retained earnings Other contributions Total Opening balance 01 April 2025 135 2,387 19 ,762 400 22,683 Profit for the period - - 5,091 - 5,091 Other comprehensive income - - - 396 396 Issue of equity shares - - - - - Purchase of treasury shares - (182 ) - - (182 ) Employee stock compensation expense - 287 - - 287 Shares bought back (2) (1,789) (2) - (1,793) Dividend Paid - - (1,603) - (1,603) Others - - - - - Closing balance 31 Mar 2026 133 703 23,248 796 24,880 Opening balance 01 April 2026 133 703 23,248 797 24,880 Profit for the period - - 2,886 - 2,886 Other comprehensive income - - - 168 168 Issue of equity shares 0.02 56 - - 56 Purchase of treasury shares - 4 - - 4 Employee stock compensation expense - 25 - - 25 Shares bought back - - - - - Dividend Paid - (796) - (796) Others 0 - - - 0 Closing balance 30 Sep 2026 133 788 25,338 965 27 ,224
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15 Shareholder Report Q2 FY27 CONDENSED STATEMENT OF CASH FLOWS AND LIQUIDITY POSITION (In ₹ Mn, unless otherwise stated) H1 FY27 (Unaudited) FY26 (Audited) Cash flow before changes in working capital 4,392 7 ,775 Changes in working capital 109 (403) Cash generated from operations 4,501 7 ,372 Taxes (352) (1,630) Cash flow from operating activities 4,149 5,7 42 Net investments in tangible and intangible assets (57 4) (I97 4) (Purchase)/Sale of investments - (Short term liquid funds) (939) 970 Interest and other income received 226 309 Movement in bank balances (2,064) (37) Investment in subsidiary (78) - Cash flow from investing activities (3,429) 268 Purchase/Issue of Treasury shares 0 - Dividend received from/(purchase) of treasury Shares 4 -182 Buyback of shares - -1,793 Dividend paid during the year (796) (1,603) Interest paid on lease liabilities (86) (173) Cash flow from financing activities (878) (3,752) Cash flow for the period (158) 2,258 Cash and cash equivalents at the beginning of period 7 ,273 5,015 Cash Acquired on ValueFirst Acquisition 77 - Cash and cash equivalents at the end of period 7 ,192 7 ,273 Investments in Liquid fund 1,209 255 Fixed deposits and other bank balances 6,073 4,009 Cash and cash equivalents closing balance 14,47 4 11,538 Note: Cash balance includes liquid funds which are held as investments and fixed deposits having a maturity period of greater than twelve months
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16 Shareholder Report Q2 FY27 Annexure- 2 Quarterly Trends Key financial ratios Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Revenue growth (YoY) (0.8%) (0.2%) 1.9% 3.8% 7. 8 % 12.1% 15.0% 17 .8% 25.3% Gross margin % 26.2% 26.1% 25.3% 25.0% 26.6% 2 7. 6 % 27 .0% 26.6% 26.1% EBITDA margin % 17 .5% 16.3% 16.0% 15.8% 16.5% 1 7. 0 % 16.3% 16.4% 15.9% EBIT margin % 15.2% 13.9% 13.3% 13.1% 13.7% 14.1% 13.5% 13.7% 13.1% Profit after tax margin % 13.0% 11.8% 11.5% 11.4% 11.6% 11.7% 11.4% 11.6% 10.8% Free cash flow 520 2,165 1,715 (309) 1,645 1,368 2,063 1,259 2,316 Day sales outstanding 90 82 72 91 77 83 76 79 63 ROCE (Including CCE) 28.0% 24.2% 25.6% 23.2% 25.6% 31.8% 25.3% 26.7% 26.5% Revenue (In ₹ Mn) Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Platform 880 955 938 919 984 1,016 1,030 1,031 1,047 Enterprise 9 ,127 9 ,049 9 ,306 9 ,488 9 ,801 10,194 10,7 46 11,233 12,470 Total 10,007 10,004 10,244 10,407 10,785 11,210 11,775 12,264 13,517 Gross profit (In ₹ Mn) Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Platform 868 943 926 905 970 1,000 1,014 1,015 1,033 Enterprise 1,750 1,663 1,662 1,702 1,898 2,093 2,165 2,246 2,498 Total 2,618 2,607 2,588 2,607 2,868 3,093 3,179 3,262 3,531 Gross margin Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Platform 98.7% 98.7% 98.7% 98.5% 98.6% 98.4% 98.3% 98.5% 98.6% Enterprise 19 .2% 18.4% 17 .9% 17 .9% 19 .4% 20.5% 20.1% 20.0% 20.0% Total 26.2% 26.1% 25.3% 25.0% 26.6% 2 7. 6 % 27 .0% 26.6% 26.1% EBITDA (In ₹ Mn) Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 EBITDA 1,754 1,634 1,635 1,639 1,775 1,905 1,918 2,012 2,143 EBITDA margin 17 .5% 16.3% 16.0% 15.8% 16.5% 1 7. 0 % 16.3% 16.4% 15.9% EBITDA/Gross profit 67. 0 % 62.7% 63.2% 62.9% 61.9% 61.6% 60.3% 61.7% 60.7%
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17 Shareholder Report Q2 FY27 Profit/(loss) after tax (In ₹ Mn) Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Profit/(loss) after tax 1,302 1,185 1,173 1,184 1,250 1,314 1,343 1,422 1,464 Profit after tax margin 13.0% 11.8% 11.5% 11.4% 11.6% 11.7% 11.4% 11.6% 10.8% Earnings per share (In ₹ ) Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Basic earnings per share 9. 70 8.82 8.7 4 8.82 9 .43 9.95 10.18 10.77 11.09 Free cash flow (In ₹ Mn) Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Free cash flow 520 2,165 1,715 (309) 1,645 1,368 2,063 1,259 2,316
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18 Shareholder Report Q2 FY27 Key Policies Basis for preparation of financial statements 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. Revenue recognition Revenues are derived from our Enterprise and Platform business. Revenues from Enterprises are computed based on total transactions processed through our platforms at an agreed price per transaction. Platform revenues are computed by way of revenue share measured as a rate applicable to transaction processed on mobile carrier’s network. Revenue is recognized upon provision of service to customers that reflects the consideration we expect to receive in exchange for those service. Depreciation and Amortization Fixed assets including IT assets are depreciated over their estimated useful lives using the straight-line method. Intangible assets created at time of acquisition based on purchase price allocation methodology. Intangible assets are amortised over their estimated useful lives using the straight-line method. Right-of-use asset represents leased assets (leased office space) and is depreciated over their useful life. Capitalization of Platform cost: Research and development cost are aimed at developing new and innovative products, expanding features for our existing platforms and products. Development cost comprises of third- party product development and other direct related cost associated with it. Development cost incurred are capitalized on product go-live. Provision for bad and doubtful debts The provision for bad and doubtful debt policy is a norm-based policy approved by the Audit Committee Debtors are assessed at end of each reporting period and provided for based on the policy, 50%- debtor aged between 180-270 days and 100% for greater than 270 days for Enterprise customers and 100% for greater than 365 days for PSU and government. Provisions created shall be higher of Expected Credit Loss (ECL) or provision determined by the policy. Investment policy Investments may be made in approved debt-oriented mutual fund schemes, including Liquid Funds, Liquid Plus Funds, Fixed Maturity Plans (FMPs), and Short-Term Income/Debt Funds, with underlying securities generally rated AAA/AA+/AA. The Company may also invest in fixed deposits and certificates of deposit with approved banks, AAA/AA+ rated corporate fixed deposits of approved NBFCs, and PSU Bonds, Government-Guaranteed Bonds, Municipal Bonds, Tax-Free Bonds, G-Secs, and SDLs, subject to prescribed credit rating, tenure, and concentration limits. All bond investments must be executed through SEBI- registered intermediaries. Dividend policy The dividend policy reflects the intent of the Company to reward its shareholders by sharing a portion of its profits after retaining funds for longer term sustainable growth of the Company. The Company would maintain a total dividend pay-out of 30% of the annual Consolidated Profits after Tax (PAT) of the Company. PAT means Profit after tax as per the audited consolidated P&L financials and available as distributable surplus to the shareholders.
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19 Shareholder Report Q2 FY27 Code of Conduct: Tanla is committed to follow the best business, commercial and legal practices. The Code of Conduct is intended to guide the Board in implementation of the code. The code is applicable to all employees of Tanla including the Directors of Tanla and its subsidiaries. Supplier code of conduct: We believe in conducting business with ethics and integrity, treating all people with dignity and respect, supporting our communities, and honoring the laws & regulations of the countries in which we operate. We will endeavor to choose reputable business partners who conduct their business in a manner that shows high ethical standards, safe and healthy work environments, protection of human rights and dignity, protection of environment and compliance with the law. The SCoC outlines our expectations regarding the workplace standards and the business practices of our suppliers and those in their supply chain. Whistle Blower Policy: This policy is formulated with a view to provide a mechanism for employees to report to the management instances of unethical behaviour, actual or suspected fraud or violation of the company’s code of conduct. Code for Insider Trading: The Code prescribes the Internal Procedures and Conduct for Regulating, Monitoring and Reporting of trading by insiders of the Company. The trading window shall be closed from 1st of month of every quarter till 48 hours after the declaration of the financial results. The Trading window will be closed from 1st March, 1st June,1st Dectember,1st December until 48 hours after the declaration of financial results of the Company for the respective quarter. Risk Management policy: The Company is affected by general economic, financial, and regulatory developments at the domestic and international level. We have in place a structure, procedures, and control systems to detect & identify risks and implement appropriate measures to mitigate and prevent them. Related Party Transaction Policy: Related party transactions are subject to the Audit Committee’s approval. As required by the applicable Regulations, all related party transactions are reported on a half-yearly basis to the Stock Exchanges. Our related party transactions are limited to inter-company transactions. Environmental policy We endeavour to reduce the impact of our operations and business activities on the environment while influencing the people in our value chain as well as our social interactions to follow the path of environmentally sustainable living. Governance policies
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20 Shareholder Report Q2 FY27 Definitions Platform business Platform business refers to revenue generated from “Platform as a service offering”, where only cloud and hosting are a charge on revenue. Enterprise business Enterprise business refers to revenue generated based on total transactions processed at an agreed price per transaction, through multiple channels like SMS, emails, WhatsApp and others. Cost of services for enterprise business mainly consist of transaction fee paid to mobile carriers and other suppliers. Gross profit Revenue less cost of services. Cost of services comprises of service transaction fee paid to mobile carriers and other suppliers. Gross margin The gross margin reflects percentage of revenue less cost of services. EBITDA Earnings before interest, taxes, depreciation, and amortization reflects profit derived based on revenue less of operating expenses. It is reflection of profitability of operating business. Adjusted EBITDA Adjusted EBITDA excludes one-time expenses such as one time acquisition, buy back, ESPS and other event related costs. EBIT Revenues – Cost of sales (where applicable) – indirect cost (includes platform operational cost, people cost and overheads, SG&A) – depreciation – allocated corporate costs. Operating cash flow Operating cash flow is a measure of amount of cash generated from business operations. Free cash flow Free cash flow is derived by reducing capital expenditure from operating cash flow. It measures how much cash is at disposal after covering cost associated with business operations. Return on capital employed (ROCE) ROCE including CCE: EBIT divided by capital employed. Capital employed is derived by reducing current liabilities from total assets. New customer New customers include every unique new contracting entity added in the year. Customer segments Customer segments are arrived at on a quarterly annualized basis (quarter revenue multiplied by four).
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21 Shareholder Report Q2 FY27 Ms. Naiyya Saggi Independent Director About Tanla: Founded in 1999 , Tanla Platforms Limited is an AI-native platform company transforming digital interactions by empowering users and enabling enterprises through its innovative-led SaaS solutions. With a unique enterprise and user- centric approach, Tanla drives advancements in data security, privacy, and protection against spam and scams. Tanla has deep partnerships with leading telcos to build trusted and scalable communication ecosystems. Headquartered in Hyderabad, India, Tanla is the preferred partner for over 3,200 enterprises across industries, including global tech leaders like Google, Meta, and Truecaller. Recognized as a ‘Visionary’ in the 2026 Gartner® Magic Quadrant™ and ranked among the “1000 High-Growth Companies in Asia Pacific” by the Financial Times, Tanla is publicly traded on the NSE and BSE (NSE: TANLA; BSE: 532790). Guidance Tanla does not provide any guidance. ESG The purpose of our ESG is to build solutions & services which offer security & transparency, earning the trust of customers, investors and governments while acting responsibly towards employees and communities. We envision in building a resilient organisation that engages with the customers, suppliers, and employees to provide an unparalleled global communications platform while being steadfast to ethics and integrity that result in a better future and a committed triple bottom line of People Planet and Profit. Forward-looking statements This document might contain statements that are forward looking in nature. All statements other than statements of historical fact could be deemed as forward-looking in nature. Such statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. By receiving this document, you acknowledge that you will be solely responsible for your own assessment of the market and our market position and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of our business. Certification The CEO and CFO certify that financial results do not contain any false or misleading statements or figures and do not omit any material fact which may make the statements or figures contained therein misleading. Headquarters Tanla Technology Centre, Hi-Tech City Road, Madhapur, Hyderabad – 500 081, Telangana, India. CIN: L72200TG1995PLC021262 www.tanla.com Board of Directors Mr. Uday Reddy Founder Chairman & CEO Mr. François Ortalo-Magné Independent Director Dr. RS Sharma Lead Independent Director Mr. Sunil Bhumralkar Independent Director Mr. Deepak Goyal Executive Director Auditors Statutory Auditor M/s. MSKA & Associates Mukesh Kumar Pugalia - Partner Internal Auditor Ernst & Young LLP George Kalliath - Partner
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22 Shareholder Report Q2 FY27 (In ₹ Mn, unless otherwise stated) Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Revenues Digital Platforms 919 984 1,016 1,030 1,031 1,047 Enterprise Communications 9 ,488 9 ,801 10,194 10,7 46 11,233 12,470 Total revenues 10,407 10,785 11,210 11,775 12,264 13,517 YoY % change 3.8% 7. 8 % 12.1% 15.0% 17 .8% 25.3% Gross Profit Digital Platforms 905 970 1,000 1,014 1,015 1,033 Enterprise Communications 1,702 1,898 2,093 2,165 2,246 2,498 Total Gross profit 2607 2,868 3,093 3,179 3,262 3,531 YoY % change (3.3%) 9. 5 % 18.7% 22.8% 25.1% 23.1% EBITDA Digital Platforms 721 755 756 807 811 820 Enterprise Communications 917 1,020 1,149 1,111 1,201 1,323 Total EBITDA 1,638 1,775 1,905 1,918 2,012 2,143 Customer segment (In ₹ Mn) Q2 FY26 Q1 FY27 Q2 FY27 Revenue growth Count Revenue Count Revenue Count Revenue QoQ YoY >500Mn 15 4,088 21 5,264 22 5,826 10.7% 42.5% >100Mn - < 500Mn 71 4,103 77 4,336 80 4,546 4.8% 10.8% >10Mn- < 100Mn 271 2,278 255 2,205 318 2,625 1 9.0 % 15.2% Total 357 10,469 353 11,805 420 12,997 10.1% 24.1% Deep-Dive Chart - Key Metrics Deep-Dive Chart - Customer SegmentationQ5 Q1
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23 Shareholder Report Q2 FY27 Deep-Dive Chart - EBITDA Walk QoQ (In ₹ Mn, unless otherwise stated) EBITDA walk from Q1 FY27 to Q2 FY27 Q6 2,012 269 (28) (35) (60) 2,143 (14) Employee cost Gross Profit ValueFirst Overseas MarketingOther Expenses Q1 FY27 Q2 FY27 Increase Decrease Q7 Deep-Dive Chart - Depreciation and Amortisation (In ₹ Mn, unless otherwise stated) Q2 FY27 Q1 FY27 Q2 FY26 Seq % YoY % Internally developed assets 106 125 129 2.9% 21.2% Intangible assets from acquisition 28 28 50 81.1% 81.1% Software purchases 24 28 29 2.4% 22.5% Depreciation 139 148 166 12.0% 18.9% Total 297 329 373 13.5% 25.8% (In ₹ Mn, unless otherwise stated) Q2 FY27 Q1 FY27 Q2 FY26 Seq % YoY % EBITDA 2,143 2,012 1,77 4 6.5% 20.8% Depreciation (373) (329) (297) 13.6% 25.9% Other income 121 141 89 -14.4% 35.0% Finance Cost (17) (11) (12) 60.1% 40.8% Effective Tax rate 21.8% 21.6% 19 .6% 25 bps 224 bps PAT 1,464 1,422 1,250 3.0% 17 .1% PAT margin 10.8% 11.6% 11.6% (76bps) (76bps) Q8 Deep-Dive Chart - PAT & ETR
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24 Shareholder Report Q2 FY27 (In ₹ Mn, unless otherwise stated) Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Cash Restricted cash2 575 576 582 617 584 584 Current accounts- ₹ 235 267 178 525 401 258 Current accounts- USD 1,156 1,250 1,178 979 1,879 2,7 46 Investments Fixed deposits 7 ,138 6,721 7 ,449 9 ,315 9 ,106 10,885 Cash and cash equivalents (CCE)1 9 ,104 8,814 9 ,387 11,436 11,970 14,47 4 (In ₹ Mn, unless otherwise stated) Current accounts- ₹ Current- accounts-USD Fixed deposits Restricted cash Total Cash HDFC Bank 158 1,022 7 ,433 547 9 ,161 Liquid Funds - - 1,209 - 1,209 State Bank of India 10 - 1,144 - 1,154 Axis Bank 3 - 198 1 202 ICICI BANK 10 - 785 - 795 Kotak Mahindra Bank 13 - 81 - 94 Citibank (Dubai) - 1,075 - - 1,075 DBS Bank (Singapore) - 526 - 36 562 Others (IDBI+Riyad+IOB) 64 123 35 - 222 Total 258 2,7 46 10,885 584 14,47 4 1. Cash balance includes liquid funds which are held as investments and fixed deposits having a maturity period of greater than twelve months 2.Restricted cash is held as margin money deposits given for bank guarantees and cash credit limits. Q9 Deep-Dive Chart - Cash and Cash Equivalents breakup
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