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Geopolitical uncertainty impacting advertiser budgets
View Risks →Affle 3i Limited — Q3 FY26
Affle delivered a strong Q3 FY26 with revenue of INR 718 crore (+19.2% YoY) and EBITDA of INR 163 crore (+24.1% YoY), marking the 11th consecutive quarter of sequential growth.
bullish
high
Financial stats pending filing verification
2-Minute Summary
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Affle delivered a strong Q3 FY26 with revenue of INR 718 crore (+19.2% YoY) and EBITDA of INR 163 crore (+24.1% YoY), marking the 11th consecutive quarter of sequential growth. PAT hit a record INR 119 crore (+19.1% YoY). Growth was broad-based across verticals and geographies, with India & emerging markets contributing 73.9% of revenue. The CPCU business drove 119.7 million conversions at a record CPC rate of INR 59.6. Management highlighted AI-driven platform enhancements (Nico engine) and verticalization strategy as key differentiators. Guidance implies sustained 18-20% revenue growth with EBITDA growth outpacing revenue. Risks include geopolitical uncertainty and potential slowdown in advertiser budgets.
एफ़ल ने वित्त वर्ष 2026 की तीसरी तिमाही में शानदार प्रदर्शन किया। कंपनी की कमाई 718 करोड़ रुपये रही, जो पिछले साल से 19.2% ज़्यादा है। मुनाफा (EBITDA) 163 करोड़ रुपये रहा, जो 24.1% बढ़ा। शुद्ध मुनाफा (PAT) 119 करोड़ रुपये का रिकॉर्ड स्तर पर पहुंच गया। यह लगातार 11वीं तिमाही है जब कंपनी की आय बढ़ी है। भारत और उभरते बाज़ारों से 73.9% कमाई आई। कंपनी ने AI तकनीक (निको इंजन) से अपने प्लेटफॉर्म को बेहतर बनाया है। आगे भी 18-20% कमाई बढ़ने का अनुमान है, और मुनाफा कमाई से तेज़ी से बढ़ेगा। जोखिमों में भू-राजनीतिक अनिश्चितता और विज्ञापन बजट में कमी शामिल है।
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Read Transcript →Quarter Snapshot
CPCU Conversions
119.7M
+19.6% YoY
Highest ever quarterly conversions driven by broad-based demand across verticals.
CPC Rate
INR 59.6
+3.1% YoY
Record CPC rate reflecting premium user targeting and verticalization strategy.
India & EM Revenue Share
73.9%
+19.8% YoY
Anchor market growth resilient despite full quarter impact of real money gaming ban.
OCF/PAT Ratio (9M)
75.8%
Temporary dip
Lower due to agency audit cycles; management expects normalization to 85-95% in Q4.
What Changed vs Last Quarter
NEW
One meaningful acquisition in 2026
Management shortlisted 4 targets from 12 and expects to close a sizeable acquisition in 2026, following historical playbook.
NEW
Q4 revenue likely flattish to slightly down vs Q3
Normal seasonality suggests Q3 is peak; Q4 may see slight dip but could surprise positively if geopolitical conditions remain stable.
UPDATED
Revenue growth target of 18-20%
Management expects revenue growth in the 18-20% range, with EBITDA growth of 23-25% and margin expansion.
UPDATED
EBITDA growth to outpace revenue
Internal KPIs target combined revenue and EBITDA growth of ~45%, with EBITDA growth faster than revenue.
DROPPED
Continued margin expansion
EBITDA margin expansion expected to continue, supported by operating leverage and AI-driven cost efficiencies.
DROPPED
Active M&A pipeline of ~10 companies
Management is evaluating ~10 acquisition targets with a focus on tech and platform synergies, aiming for one deal per year.
NEW RISK
Geopolitical uncertainty impacting advertiser budgets
Management noted that global geopolitical tensions could cause advertisers to pull back spending, affecting Q4 and beyond.
NEW RISK
Inventory cost investment may pressure near-term margins
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.
NEW RISK
Real money gaming ban impact on India revenue
The RMG ban resulted in a ~INR 10-12 crore revenue loss in Q3 compared to base, though offset by broad-based growth.
NEW RISK
Agency payment cycles causing temporary OCF dip
OCF/PAT ratio fell to 75.8% due to agency audits; management expects normalization but any delay could affect cash flows.
RISK GONE
RMG headwinds in India
Real money gaming vertical continues to face regulatory and operational challenges, impacting ad budgets. Management expects carry-forward effect into Q3.
RISK GONE
US budget rollover due to tariff uncertainty
Some US advertisers deferred budgets from Q2 to Q3 due to tariff-related uncertainty, though pipeline remains strong.
RISK GONE
Potential margin pressure from provisioning
Additional provisioning for trade receivables in RMG vertical impacted PBT by ~0.5%, with ongoing assessment required.
Fast read
Guidance and risk preview
Management expects revenue growth in the 18-20% range, with EBITDA growth of 23-25% and margin expansion.
Management noted that global geopolitical tensions could cause advertisers to pull back spending, affecting Q4 and beyond.
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