Affle 3i FY26 Annual Earnings Summary

Real money gaming vertical continues to face regulatory and operational challenges, impacting ad budgets. Management expects carry-forward effect into Q3.

Management noted that global geopolitical tensions could cause advertisers to pull back spending, affecting Q4 and beyond.

Data and inventory costs rose as a percentage of revenue due to investments in verticalization for international markets; management expects this to continue for a few more quarters.

Gross margins have declined from ~39% to ~36% over recent quarters due to investments in premium inventory and verticalization, which may continue to pressure near-term margins.

Management acknowledged temporary softness in select markets due to geopolitical events, which could impact growth if conditions worsen.

Management is pursuing multiple acquisition targets; integration and transformation to CPCU model may take time and could dilute near-term financials.

Some US advertisers deferred budgets from Q2 to Q3 due to tariff-related uncertainty, though pipeline remains strong.

Additional provisioning for trade receivables in RMG vertical impacted PBT by ~0.5%, with ongoing assessment required.

The RMG ban resulted in a ~INR 10-12 crore revenue loss in Q3 compared to base, though offset by broad-based growth.

OCF/PAT ratio fell to 75.8% due to agency audits; management expects normalization but any delay could affect cash flows.