Affle 3i LimitedUnclassifiedAFFLE
Q1 FY27 earnings callAffle 3i Limited
The company delivered its highest ever quarterly revenue and profits with 20%+ growth, demonstrating the resilience of its CPCU model despite headwinds in some segments, and is progressing on a larger inorganic acquisition for Developed Markets.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Revenue | INR 7.47 billion | 20.4% y-o-y | |
| EBITDA | INR 1.68 billion | 20% y-o-y | |
| EBITDA Margin | 22.4% | 10 bps q-o-q | |
| Profit After Tax | INR 1.28 billion | 21.7% y-o-y | |
| PAT Margin | 16.6% | 60 bps q-o-q |
Financials
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹601.67 Cr+20.6% YoY+10.8% QoQ | ₹100.22 Cr+30.5% YoY+8.9% QoQ | ₹7.15+24.8% YoY+9% QoQ |
| Q2 FY25 | ₹542.88 Cr+25.9% YoY+4.5% QoQ | ₹91.99 Cr+37.8% YoY+6.2% QoQ | ₹6.56+30.9% YoY+6.1% QoQ |
| Q1 FY25 | ₹519.50 Cr+27.8% YoY+2.6% QoQ | ₹86.59 Cr+30.9% YoY-1% QoQ | ₹6.18+24.3% YoY-4.2% QoQ |
| Q4 FY24 | ₹506.22 Cr+42.3% YoY+1.5% QoQ | ₹87.49 Cr+40.2% YoY+13.9% QoQ | ₹6.45+37.8% YoY+12.6% QoQ |
| Q3 FY24 | ₹498.71 Cr+32.6% YoY+15.6% QoQ | ₹76.82 Cr+11.2% YoY+15% QoQ | ₹5.73+10.4% YoY+14.4% QoQ |
TL;DR
- Recorded highest ever quarterly revenue, EBITDA, PAT, and consumer conversions.
- Revenue grew 20.4% y-o-y to Rs 7.47 billion, with 95% of revenues growing over 25% y-o-y on an adjusted basis.
- EBITDA grew 20% y-o-y to Rs 1.68 billion with stable margins at 22.4%.
- PAT grew 21.7% y-o-y to Rs 1.28 billion.
- India & Emerging Markets grew 20.2% y-o-y; Developed Markets grew 20.7% y-o-y.
- Strategic acquisition of AdColony assets aims to unlock competitive advantage in Developed Markets.
Said on the call
“When we normalize it, it gives me a lot of confidence and even deeper conviction, because on an adjusted basis, 95% of our revenues have actually seen over 25% growth y-o-y.”
From the Q&A
| Topic | What management said |
|---|---|
| Growth Trajectory & Headwinds | Management clarified that 95% of revenues grew over 25% y-o-y on an adjusted basis, impacted by regulatory/macro headwinds in segments like RMG, FinTech; internally pegged at 25% growth, giving confidence for medium-term 20%+ guidance. |
| Gross Margin Pressure | Attributed margin pressure partly to currency adjustments (passing benefit to advertisers) and strategic investments; expects margin expansion within this financial year, especially in Developed Markets, aided by the AdColony acquisition. |
| AdColony Acquisition Strategy | Described the asset acquisition as a 'windfall strategic gain' for unlocking 500M+ connected devices in Developed Markets via 100K+ app integrations, to be executed organically without significant new costs. |
| Developed Markets Focus & Growth | Affirmed ambition to grow in Developed Markets (over 50% of global ad spend) at 20%+ consistently, citing a large addressable market and small base; U.S. is a strategic focus both organically and inorganically. |
| CTV Strategy | Stated CTV is showing positive engagement; emphasized a consumer-centric, cross-screen (CTV + mobile) conversion approach rather than a commoditized inventory model. |
| Larger Inorganic Acquisition | Confirmed due diligence by third-party advisors, targeting closure by early 2027; any acquisition must be accretive to the bottom line and support at least 20% growth for the combined entity. |
| Bobble AI Investment | Acknowledged the company's insolvency filing but stated the underlying asset (keyboard platform) is valuable; awaiting clarity from legal proceedings; no impairment booked yet as it's in early stages. |
Guidance
- Medium-term growth guidance of at least 20% is supported by internal momentum pegged at 25%.
- Expect to close the larger inorganic acquisition by early 2027.
- Aim to activate over 100,000 mobile apps to reach over 500 million connected devices in Developed Markets this year via AdColony assets.
- OCF to PAT ratios, weak in Q1 due to upfronting from FY2026, expected to normalize to 80%-85% by Q3.
- Maintain target of achieving the 10x growth plan (decadal view) in half the time, i.e., five years, through organic growth and strategic acquisitions.
Source
Summary written from the transcript filed by Affle 3i Limited for the call held on 10 Aug 2026; published 18 Aug 2026, 18:48 IST.