Tanla Platforms Declines 4% Before Board Meeting on Fresh Buyback Proposal

Mumbai, June 16, 2025: Shares of Tanla Platforms fell over 4% intraday on Monday, reacting to news of an upcoming board meeting to consider a fresh share buyback proposal. The stock hit a low of ₹637.70 on the NSE, down 4.1% during the trading session. Despite this decline, Tanla Platforms has seen steady gains since March 2025, although it continues to trade 41% below its 52-week high of ₹1,086.05, recorded in July 2024.

Tanla Platforms Board Meeting on Buyback Proposal

In a regulatory filing with the stock exchanges, Tanla Platforms Ltd. confirmed that its Board of Directors is set to meet on June 16, 2025, to evaluate and approve a proposal for buyback of equity shares. The company assured that the meeting would adhere to all applicable provisions under the Companies Act, 2013, and SEBI (Buy-back of Securities) Regulations, 2018.

🔸 Third Buyback in Five Years

If approved, this buyback would mark Tanla’s third share repurchase initiative in recent years:

In 2020, Tanla completed a buyback of ₹154 crore at ₹1,200 per share.
In 2022, another buyback worth ₹170 crore was also executed at ₹1,200 per share.

Buybacks are generally perceived as a positive signal from management, indicating confidence in the company’s fundamentals and future growth prospects. Additionally, share buybacks reduce outstanding shares, potentially improving key financial ratios like EPS (Earnings per Share) and RoE (Return on Equity).

Why Now? Q4 Earnings Under Pressure

Interestingly, the buyback proposal comes close on the heels of Tanla Platforms’ Q4 FY25 earnings report, which showed mixed results:

Net Profit: ₹117.3 crore, down 9.9% YoY from ₹130.2 crore
Revenue: ₹1,024.4 crore, up 1.9% YoY from ₹1,005.5 crore
EBITDA: ₹163.4 crore, up 1.9% YoY
EBITDA Margin: Maintained at 16%

The slight improvement in revenue and EBITDA, despite the fall in net profits, suggests Tanla is managing operational efficiency even amid margin pressures. The board’s earlier move to declare a ₹6 per share interim dividend for FY25 further highlights its commitment to shareholder returns.

Stock Performance: Volatility Amid Recovery

Tanla Platforms’ stock has exhibited high volatility over the past 12 months:

1-Year Decline: Over 31% down
52-Week High: ₹1,086.05 (July 2024)
52-Week Low: ₹409.40 (March 2025)

However, recent months have shown signs of recovery:

March 2025: +7%
April 2025: +1.5%
May 2025: +30.6%

After a six-month downtrend from August 2024 to February 2025, sentiment has turned cautiously optimistic. Analysts suggest that the proposed buyback could further bolster investor confidence if the buyback price premium is significant.

What Does This Mean for Investors?

While share buybacks are generally considered favorable, investors should note that Tanla Platforms is still battling margin pressures and declining profits. The upcoming buyback price and quantum will be key triggers for stock movement in the coming weeks.

Analyst View:

If the buyback price is set close to or above ₹800-900, analysts expect short-term upside in the stock.
However, sustained growth will depend on future earnings performance and margin expansion.

Tanla Platforms: Business Overview

Tanla Platforms is one of India’s leading cloud communication providers, offering services like A2P messaging, voice solutions, and CPaaS (Communications Platform as a Service). The company plays a significant role in powering communication infrastructure for large enterprises across sectors like banking, telecom, and ecommerce.

✅ Should You Buy Tanla Platforms Shares Now?

Investors looking for short-term gains might find an opportunity if the buyback premium is attractive. However, long-term investors should closely monitor: