Affle 3i Limited — Q2 FY26
Affle delivered a record quarter with revenue of ₹646.7 crore (+19.1% YoY), EBITDA of ₹146.1 crore (+28.9% YoY), and PAT of ₹115 crore (+20.1% YoY).
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
71%Questions answered2Evaded / deflected12Questions auditedContradictedNumbers vs filing
Partial answer
High priority
Impact of RMG issue on India growth and festive demand signs.
Asked by Ashwin
Management acknowledged impact but did not quantify it or specify residual effects.
no quantification of RMG impactno specific residual impact details
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Question
despite the fact that we have the we had the RMG issues this quarter we saw almost 25% growth in India so wanted to get a sense in terms of what were the impacts of the RNG issue are there any residual impacts left and what was the offset in terms of driving uh such a strong growth and secondly uh given that this time around Diwali was a little earlier so any early signs in terms of how the festive demand is shaping up.
Anuj (CEO)
Yes, the RMG issue did did impact uh in this quarter but that was offset by uh better demand and early demand because of Diwali being early today this time. So therefore in uh we saw a lot of the advertisers increasing their campaign budget spends earlier in the month of September. So we saw benefit from that.
Answered
High priority
Impact of tariff uncertainty on developed market budgets.
Asked by Ashwin
Management directly addressed the question, stating no budget cuts but a shift in timing.
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Question
you did talk about some rollover of the budgets from Q2 to Q3. Uh so what exactly are we seeing there? any impact of the the tariff or the uncertainty that's been there around the uh around the drug tariffs or their policies or demand in the developed market.
Anuj (CEO)
For us we haven't seen any uh you know reduction in budgets due to any tariff issues at the moment. What we have though seen is that some of the advertisers were more careful and they were wanting to you know increase their budgets into Q3 which is a festive quarter versus uh spending more during the previous quarter uh because of the uncertaintity around tariffs.
Answered
Medium priority
Reason for non-CPCU revenue spike to ~15 crores.
Asked by Deep Sha, BNK securities
Management explained the nature of non-CPCU revenue and its role as a feeder mechanism.
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Question
after I think seven quarters we've seen non CPCU revenue again at roughly roughly 15 crores. So is this like a one-time project or or some client wanted something non CPO because I think directionally we we have been focusing only on the CPCO side.
Anuj (CEO)
So for us uh CPCU is the anchoring uh segment that we're pushing for and nonCPCU is anything that is you know outside dri conversionsdriven campaign. So there could be instances where we would do certain licensing deals with certain customers. There would be cases where we're doing a branding campaign...
Answered
High priority
Quantify provisioning and sustainability of margin improvement.
Asked by Deep Sha, BNK securities
Management quantified provisioning as ~0.5% of PBT and confirmed margin sustainability.
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Question
if you to quantify if that's material enough if you could quantify the provisioning uh and and second what part of it do you think uh is actually the operating leverage because we also saw some cost rationalization that you spoke about in in the opening remark. So is all of that sustainable?
CFO (name not stated)
So the provisioning effect uh can be quantified as close to about half a percent of our uh profits uh before tax right uh which is the provision which has been uh reviewed by the our uh statutory auditors...
Answered
High priority
Would management sacrifice margins for higher growth?
Asked by Arun Prasad, Evadius Park
Management clearly stated they will not sacrifice margins for growth, maintaining current strategy.
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Question
Is there any still case for uh going after some of the other businesses which is may not be as profitable as you know at the current margins but maybe diluting some margins we can deliver better growth.
Anuj (CEO)
we are a margin sensible bottom line uh aggressive company and therefore the DNA of the whole organization... we don't want to tamper with the organizational DNA at this moment.
Answered
High priority
Status of M&A pipeline and cash deployment plans.
Asked by Arun Prasad, Evadius Park
Management provided specific number (10 companies) and explained their M&A approach.
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Question
do you feel that we we still have a lot of opportunity on the table uh uh to utilize this cash and deploy and take our uh business to the next level or uh you feel that currently we are you still want to wait and watch and uh the valuation is a bigger concern
Anuj (CEO)
we have a pipeline or let's say uh you know evaluation list of around 10 companies that we are actively evaluating uh at the investment committee level... we would necessarily look at the right timing yes in the sense of valuation but also I think in terms of where those target companies are in their journey
Partial answer
Medium priority
Reason for sharp quarterly increase in depreciation.
Asked by Swapnil Pot, JM Financial Service Limited
Management explained it as a recurring trend but did not quantify the increase or provide specific reasons.
no specific quantificationattributed to recurring trend without details
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Question
it seems there was a sharp quarterly increase in your DNA. Uh and can you help us understand why such a big increase was there this quarter?
CFO (name not stated)
It's not uh without a trend. It says that uh certain portions of the new effects get capitalized during and put to use during this period and there is an incremental uh shift of work in progress to the actual capitalization and thus the this worker has a higher uh depreciation every year
Evasive
High priority
Confidence in delivering 20% growth guidance for FY26.
Asked by Swapnil Pot, JM Financial Service Limited
Management avoided confirming 20% growth for FY26, stating guidance is not year-to-year.
denied having annual guidancevague response
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Question
how confident are we uh of delivering 20% growth uh uh you know this year and possibly next year as well uh given that uh the mix uh suggests that we are slightly moving towards you know uh high teens uh kind of a growth rate uh gradually.
CFO (name not stated)
Our guidance has not been year to year. medium.
Answered
Medium priority
Impact of lower CPMs from large DSPs on Affle's business.
Asked by Rahul Jen, Dollar Capital
Management explained the difference in business model and why lower CPMs are not a concern.
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Question
we have seen some large GSP reporting lower CPMs. So are we seeing such trend in our and also what are the potential you might see in our inventory data box in media.
Anuj (CEO)
the way we look at our business is um uh that we are we are the um CPC performance-driven valuebased pricing business model versus uh let's say the larger BSP that you're talking about is largely perhaps in the business of selling CPMs...
Partial answer
Medium priority
Quantum of marketing spend reduction and annual plan.
Asked by Rahul Jen, Dollar Capital
Management gave an approximate figure (~$1M) but did not provide an annual plan.
approximate numberno annual plan given
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Question
I think you mentioned that there was some migration and business promotion expense. So uh what was the quantum if you could share and what's your annual plan on the same?
CFO (name not stated)
So uh you can see about a million dollar plus has been the quantum on the spending this quarter uh on the uh side on the I'm not saying the exact number but approximately a million dollar we have uh been discretionary on our uh and there can repeat
Answered
Medium priority
Details on Nikico AI capability and its penetration.
Asked by Lokeshwanik, Capital (unclear)
Management clarified Nikico is organic and provided details on its purpose and rollout.
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Question
my question was on eco acquisition and integration. You spoke about it very briefly in your remarks. uh where you know the uh little more details from perspective of whether it helps us in the back end in terms of optimization of cost on the conversion side or from the perspective of geography
Anuj (CEO)
So so Nico is uh not an acquisition. It's an organically developed uh capability which is our AI agentic capability... we have started rolling it out as an ROId driven uh growth u engine for iOS ecosystem together with optics AI.
Evasive
Medium priority
Repeat customer rate and wallet share growth quantification.
Asked by Sanjay Lada, Bastian Research
Management avoided providing a repeat customer rate or quantifying wallet share growth.
no repeat rate givendeclined to quantifycited competitive reasons
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Question
wanted to know what is our repeat customer rate as for the advertiser we are the converted users. So my friend is every year or from their advertisement budget we should gain the wallet share. um if you can highlight or talk about with some example and I know it's happening overnight therefore we see 20% plus kind of growth but if you can quantify in the numbers as well.
Anuj (CEO)
growth comes from let's say three broad dimensions and that is existing customers spending more new customers coming in and spending with us as well as new customers... I think uh for competitive reasons our board would want to remain a bit more broad-based in our discourse
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| India growth ~25% despite RMG issues | 25% | 19.1% | Overstated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.