Shares of Tanla Platforms Ltd started spiralling down after the company decided to terminate its contract with Vodafone Idea (VI).

The company had entered into a term sheet agreement with VI in November 2021 for the provision of platform and firewall services for international A2P services, which was valid for 2 years.

The company informed that this partnership will not continue beyond its term.

Tanla Platforms Limited is a technology-driven communications company that provides cloud communication solutions for prominent companies like Airtel, Facebook, Vodafone Idea, HDFC Bank, and Axis Bank.

The ending of its partnership with VI will have a significant impact of Rs 17 crore and a PAT impact of Rs 9 crore on a full quarter base.

As Tanla Platform has failed to renew its partnership, the said deal has been offered to its direct competitor Route Mobile, marking the most significant contract in the company’s history.

The company has reported a 34.8% YoY increase in net profit to Rs 135.4 crore and a 13.9% increase to Rs 911 crore for the April-June quarter of the current fiscal year.

At 3:30 pm, the shares of Tanla Platforms Ltd closed at Rs 1,037.85 or 5.50% below its previous close on NSE.