Tanla Platforms Surges Over 7% After ₹175 Crore Share Buyback Announcement
Shares of Tanla Platforms were back in focus on June 17 as the company announced a major share buyback plan worth ₹175 crore. The news sparked a sharp rally in the stock, with shares jumping more than 7% in early trade, hitting an intraday high of ₹708 on the NSE.
The company, known for its work in cloud communications and CPaaS (Communications Platform as a Service), said in an exchange filing that its board has approved a buyback of up to 20 lakh fully paid-up equity shares at a price of ₹875 per share. This buyback represents around 1.49% of the total equity of the company.
Here’s What You Need to Know About the Buyback
- Buyback Amount: ₹175 crore
- Buyback Price: ₹875 per share
- Equity Share Capital Involved: 1.49%
- Mode: Tender offer via stock exchange
- Record Date: Yet to be announced
This move comes as part of the company’s broader capital allocation strategy. Interestingly, this is not Tanla’s first buyback. The company has conducted two buybacks in the past five years — one in 2020 and another in 2022 — reinforcing its commitment to shareholder returns.
Buyback History: A Quick Look
In 2020, Tanla’s buyback ex-date was June 9, with a record date of June 10. In 2022, the ex-date was October 21, and the record date was October 25. These past initiatives were also executed through the tender route, just like the latest one.
The current buyback amount — ₹175 crore — represents 24.81% of the paid-up equity share capital and free reserves (standalone), and 7.78% on a consolidated basis as per the March 2025 audited results.
Q4 FY25 Results: Steady Revenue, But Profit Dips
Apart from the buyback, the company also released its Q4 FY25 results. Tanla posted a revenue of ₹1,024 crore for the quarter, up 2.4% sequentially. The EBITDA stood at ₹163 crore, maintaining a steady EBITDA margin of 16%.
However, the company’s net profit dipped 9.9% year-on-year to ₹117.3 crore. The profit after tax margin came in at 11.5%, while the earnings per share (EPS) was ₹8.74.
Despite the profit drop, the company generated a robust free cash flow of ₹172 crore during the quarter. Tanla’s total cash balance as of March 31, 2025, stood at an impressive ₹1,009 crore — a positive sign of financial stability.
CEO's Take
Founder Chairman and CEO Uday Reddy shared a confident outlook:
“Our strategic investment in OTT is delivering results. We have signed two international contracts to deploy our MaaP platform. With over ₹5 Bn in free cash flow this year, we remain focused on disciplined capital allocation and long-term value creation.”
Market Reaction and Technical Outlook
The stock responded strongly to the news, climbing 7.43% in the morning to ₹706 on the NSE. It was trading around ₹687 at 09:55 AM, still up nearly 5% for the day. Over the last three months, Tanla shares have gained about 53%, though the stock remains down over 32% on a yearly basis.
Technical indicators also paint a bullish picture:
- RSI: 67.9 — nearing overbought territory
- MACD: Positive at 31.6 — indicating strong upward momentum
With the buyback announcement and consistent performance in a competitive sector, Tanla seems to be regaining investor confidence.
What This Means for Investors
Buybacks generally indicate a company’s confidence in its own financials and valuation. Tanla’s move to buy back shares at a premium price of ₹875 (when the market price was around ₹687) sends a strong signal to investors about the management's outlook.
If you’re an existing shareholder, it’s a good idea to watch out for the record date to participate in the buyback. For potential investors, Tanla’s recent performance, strong balance sheet, and consistent cash flow generation make it a stock worth tracking — especially if it breaks out above technical resistance levels.
With the company also expanding its footprint through international contracts and strategic investments in OTT and MaaP platforms, the long-term story looks promising.
📌 SEO Keywords Targeted:
- Tanla Platforms share price
- Tanla share buyback news
- Tanla Platforms buyback record date
- Tanla Platforms Q4 results
- Tanla EPS March 2025
- Tanla stock analysis
- Tanla Platforms share price target 2025
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always consult a certified advisor before making investment decisions.
Join WhatsApp Group
