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Debt-free and holding about $120 million in cash, Tanla, India’s largest A2P provider, closed FY25 in better shape than it began. WhatsApp and RCS now generate roughly 29% of enterprise revenue, while reliance on international long-distance (ILD) SMS has slid below 10%.
Even so, topline growth was just 2.5% YoY, held back by persistent SMS headwinds.
National long-distance (NLD) traffic (domestic A2P SMS) climbed in the mid-teens, powered by UPI’s surge. In contrast, ILD A2P volumes shrank about 30%, likely ceded to easier OTT options.
The Good
OTT Messaging Momentum
Tanla’s enterprise revenue mix continues to shift meaningfully toward WhatsApp and RCS. OTT now contributes 29% of enterprise revenue, up from 15% a year ago.
ILD SMS, which was a persistent drag, has shrunk to less than 10% of total revenue. Management emphasized that ILD is no longer a material headwind going into FY26.
Platform Business Gains Global Traction
Tanla adopted Distributed Ledger Technology (DLT) early, and its platform arm, which covers both DLT compliance and Messaging as a Platform (MaaP), is now expanding beyond India. Last quarter it signed two overseas telcos on revenue-share subscriptions, opening a fresh growth channel outside a home market it already leads.
Enterprise Segment Returning to Growth
After several muted quarters, Tanla grew enterprise revenues 2% sequentially in Q4. Management flagged this as a “high note” to exit FY25 and implied this creates a tailwind for FY26 growth.
The Interesting
Shift to Higher-Margin, Stickier Channels
This result is the strongest signal yet that WhatsApp is fast becoming the de facto medium of choice for brands and consumers. With WhatsApp Business Messaging at 650 million users and RCS is doing about 4 billion messages monthly, both are trouncing SMS when it comes to reach and richness.
Wisely ATP (Anti-Phishing Platform) Is Slow But Alive
Wisely ATP, once hyped as a major anti-fraud solution for telcos, has not scaled as fast as expected. Management acknowledged sales cycles were longer than anticipated but insisted customer feedback is positive and renewal rates are healthy. Pipeline remains active, and management remains “excited” but is being more measured in expectations.
Market Share Gains in a Tough Environment
Despite intense pricing pressure across Indian messaging markets, Tanla claims it expanded its market share relative to bleeding competitors. Management estimates that while it holds 40–45% revenue market share, its profit share is over 70%, suggesting operational strength even in a price-war environment.
Meta Pricing Changes Already Absorbed
Meta’s WhatsApp price adjustments, which raised marketing message rates while cutting utility message rates, are fully baked into current results. No further major pricing shifts are expected near term.
The Unknown
Platform Scaling Still Has to Deliver
While Tanla signed two international telcos for its MaaP platform, revenue contribution will ramp only as traffic scales. Details remain confidential. The model is revenue share, not upfront fees, meaning results will lag deployments. Execution risk remains if volumes don’t build fast enough.
Enterprise Growth Still Fragile
A 2% sequential growth exit from FY25 is good—but it’s one quarter. Management stopped short of giving full-year FY26 growth guidance, citing uncertainty. Pricing pressure in India remains, and while Tanla is optimistic, enterprise recovery is still early.
Finally
Tanla exited FY25 with improving momentum, but sustainable enterprise growth still needs to materialize. The transition from bulk messaging to platform-led, AI-powered communications is underway. Whether Tanla can fully capitalize on the trend or whether it hits another growth stall remains to be seen.