Affle 3i Limited detailed a strong Q3 FY2026, surpassing the INR 7 Billion quarterly revenue run-rate mark and achieving record quarterly EBITDA, PAT, and CPCU conversions. Revenue reached INR 7.17 Billion, marking 19.2% YoY growth. The management highlighted resilience across challenging environments, reinforced by continuous focus on AI-driven innovation and strategic market expansion into international developed markets.
Q3 FY2026 Financial Highlights
Affle 3i Limited announced robust results for the third quarter and nine months ended December 31, 2025. The quarter marked a significant milestone, surpassing the INR 7 Billion quarterly revenue run-rate. The company delivered its highest-ever quarterly EBITDA, PAT, CPCU conversions, and CPCU rate.
Quarterly revenue stood at INR 7.17 Billion, reflecting a 19.2% YoY growth and 10.9% QoQ growth. This performance underscores the resilience of the AI-powered Consumer Platform Stack.
Profitability and Margin Expansion
Sustained focus on productivity led to an EBITDA of INR 1.63 Billion, up 24.1% YoY and 11.6% QoQ. This marked the 7th consecutive quarter of sequential margin expansion. Profit Before Tax (PBT) from Operations (excluding Other Income) grew 25.1% YoY. Profit After Tax (PAT) reached INR 1.19 Billion, a 19.1% YoY increase.
For the 9M FY2026 period, revenue grew 19.3% YoY, while EBITDA and PAT saw respective growth of 28.5% YoY and 20.3% YoY.
CPCU Business Performance
The CPCU business remained a strong driver, executing 119.7 million conversions at a CPCU rate of INR 59.6, generating revenue of INR 7.14 Billion (a 19.6% YoY increase).
In terms of geography, India and Global Emerging Markets contributed 73.9% to revenue, growing by 19.8% YoY. Developed Markets delivered robust growth of 17.8% YoY, contributing 26.1% to revenue.
Strategic Focus: AI and International Expansion
Management emphasized that growth is powered by technology differentiation and AI-driven innovation. The Niko agentic AI optimization engine is deepening automation across bidding, targeting, and budget allocation.
The company is actively investing in data and inventory costs for the deeper verticalization of intelligence across international markets, viewing a portion of this cost as investment for future growth. It was stated that around 10% of data and inventory cost is investment in nature.
Leadership and M&A Strategy
Affle has appointed Sameer Sondhi as CEO for North America and Chief Strategic Investments Officer. The inorganic acquisition strategy is now singularly focused on verticalization, with the pool narrowed down to four companies currently undergoing due diligence. The company anticipates executing one meaningfully sized transaction in 2026.
Operational Efficiencies
Employee benefit expenses remained largely flat sequentially despite a handsome wage hike, supported by AI automation, centralizing functions in lower-cost markets (India/Southeast Asia), and enhancing productivity, ensuring OPEX does not grow in pace with revenue.
Q&A Insights
- Gross Margin: The increase in data and inventory costs is linked to conscious investment in building verticalized intelligence for international markets, not a permanent step-up in normalized costs.
- India Growth Drivers: Growth remains resilient due to a diversified, robust customer base, excelling across categories E and F (E-commerce, Education, FinTech, FMCG), and significant success in premium iOS conversions and CTV.
- Geopolitical Resilience: The company operates as a cloud-based entity with disaster management plans, confirming resilience through prior events like COVID and regional conflicts. Forex movement is managed to have no impact on P&L.
- Regulatory Readiness: Affle confirmed it is fully ready for the Indian DPDP Act, adhering to international standards proactively, which builds trust with global partners for first-party data collaboration.
- Q4 Outlook: Management expressed optimism, expecting Q4 performance to be better than Q3 or at least flat, provided geopolitical stability allows advertisers to continue budgeting normally.
Closing Remarks
CEO Anuj Khanna Sohum noted that this fiscal year marks the first year of Affle 3i and the first year of its third decade, with the company turning 21 years old on April 5, 2026. The foundation is set for the Affle 3i 10x growth vision.
Source: BSE
