Affle 3i revenue rises 20.4% in Q1FY27 on strong CPCU growth
Affle 3i Limited delivered robust Q1FY27 results with consolidated revenue rising 20.4% to ₹747.2 crore and net profit increasing 21.7% to ₹128.4 crore. Growth was anchored by its CPCU business, which saw conversions jump to 124 million. Despite a slight EBITDA margin compression due to higher data costs, the company maintained strong profitability across both emerging and developed markets.
*this image is generated using AI for illustrative purposes only.
Affle 3i Limited reported a 20.4% year-on-year increase in consolidated revenue from operations to ₹747.2 crore for the quarter ended June 30, 2026, driven by robust performance across its Cost Per Converted User (CPCU) business. Consolidated net profit after tax (PAT) rose 21.7% to ₹128.4 crore, while EBITDA expanded 20.0% to ₹167.6 crore. The growth reflects strong conversion volumes, with total conversions reaching 124.0 million (12.4 crore), up from 107.0 million in the prior year period. This performance underscores the company’s ability to scale its AI-powered consumer platform across both India & Emerging Markets and Developed Markets.
The Board of Directors approved the unaudited standalone and consolidated financial results at a meeting held on August 8, 2026. Walker Chandiok & Co LLP, the statutory auditors, issued a limited review report pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing also disclosed that the company received in-principle approval from stock exchanges on June 12, 2026, for the allotment of 7,400,000 convertible warrants to Affle Holdings Pte. Ltd. at INR 1,487 per warrant.
Financial Highlights
The following table summarises the key consolidated financial metrics for the quarter:
| Metric: | Q1FY27 | Q1FY26 | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹747.2 crore | ₹620.7 crore | +20.4% |
| EBITDA | ₹167.6 crore | ₹139.7 crore | +20.0% |
| EBITDA Margin | 22.4% | 22.5% | -10 bps |
| Profit Before Tax | ₹157.8 crore | ₹129.2 crore | +22.1% |
| Net Profit After Tax | ₹128.4 crore | ₹105.5 crore | +21.7% |
Standalone net profit rose 37% to ₹40.84 crore from ₹29.70 crore in Q1FY26. Standalone revenue increased 20% to ₹239.61 crore. Other income contributed significantly to total income, standing at ₹25.0 crore on a consolidated basis, up from ₹17.2 crore in the prior year period.
Operational Drivers and Market Split
Revenue growth was broad-based, with India & Emerging Markets contributing 72.2% of total revenue, up 20.2% year-on-year, while Developed Markets accounted for 27.8%, rising 20.7%. The CPCU model continued to dominate, contributing 99.8% of revenue from contracts with customers. Average CPCU rates increased to INR 60.2 from INR 58.0 in the previous year, supporting margin stability despite higher inventory and data costs which grew 24.9% to ₹472.2 crore.
Anuj Khanna Sohum, Chairperson, MD & CEO, stated that the acquisition of strategic AdColony assets strengthened the company’s AI-powered Consumer Platform stack. He noted that deep verticalization and expanded IP portfolio enhance human-vs-non-human data distillation, enabling premium consumer conversions.
Strategic Developments and Risks
Affle MEA FZ LLC entered into an Asset Purchase Agreement on June 11, 2026, to acquire the business of AdColony from Digital Turbine, Inc., for USD 4.70 million (approximately INR 444.10 million). Acquisition accounting will be finalized once conditions precedent are met.
However, the filing highlights significant legal risks regarding its investment in Talent Unlimited Online Services Private Limited ("Bobbie"). On June 12, 2026, the Delhi Bench of the National Company Law Tribunal admitted an insolvency petition against Bobbie due to debt repayment defaults. Affle holds a 24.07% stake in Bobbie, classified as held for sale, with a carrying value of INR 1,358.28 million. The company has filed an appeal before the National Company Law Appellate Tribunal, which is yet to be listed for hearing.
What the Numbers Show
The marginal compression in EBITDA margin — from 22.5% to 22.4% year-on-year — reflects rising operational costs even as absolute EBITDA expanded. Inventory and data costs, the largest expense line item, grew 25% to ₹472.2 crore, outpacing revenue growth slightly, suggesting increased investment in media buying or platform infrastructure. Consolidated employee benefits rose 7.8% to ₹65.6 crore, reflecting global expansion costs, while standalone employee benefits remained relatively flat at ₹14.97 crore. Operating cash flows stood at ₹69.4 crore for the quarter, down from ₹502.3 crore in FY26, indicating seasonal working capital dynamics.
Historical Stock Returns for Affle 3i
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.66% | +3.19% | -1.69% | +12.08% | -22.72% | 0.0% |
How might the insolvency proceedings against Bobbie impact Affle's balance sheet and investor sentiment if the NCLT appeal is unsuccessful?
What specific synergies does Affle expect to realize from the AdColony acquisition, and how will this integration affect its AI-powered consumer platform capabilities?
Given the 25% rise in inventory and data costs outpacing revenue growth, is the slight EBITDA margin compression a temporary seasonal effect or a sign of structural pressure on profitability?
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