Affle 3i Ltd Q1 FY27 Results Analysis: Revenue Jumps 20.4%, Bobble Uncertainty Persists

Affle 3i Ltd's Q1 FY27 numbers came in mixed, with revenue of Rs. 747.16 Cr (+20.37% YoY) and PAT growth of +21.74% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Affle reported strong 20.4% YoY revenue growth, exceeding the sector median, with EBITDA margins stable at 22.43%. Data costs rose 230 bps YoY but stabilized QoQ, while employee costs showed operating leverage. A material uncertainty exists regarding the Bobble investee insolvency, but no impairment has been booked.

Key Investment Insights

Key Positives

• Revenue grew 20.4% YoY to Rs.747.16 Cr, exceeding the sector median growth of ~10.4%.
• PAT grew 21.74% YoY to Rs.128.44 Cr, with EPS up 21.4% to Rs.9.13.
• Standalone EBITDA margin expanded 212 bps YoY to 15.57%.
• Consolidated EBITDA margin stable at 22.43%, despite data cost increase, and improved 19 bps QoQ.
• Employee benefits expense declined as % of revenue from 9.81% to 8.79% YoY.
• Data costs as % of revenue stabilized QoQ at ~63.2% after the step-up from last year.

Risk Factors

• Data costs as % of revenue rose 230 bps YoY to 63.20%, compressing EBITDA margin despite INR depreciation tailwind.
• Bobble investee insolvency (carrying value Rs.135.83 Cr) remains unresolved; no impairment booked but auditor flagged material uncertainty.
• Consolidated EBITDA margin flat YoY at 22.43%, with data cost increase offsetting operational improvements.
• OCI loss of Rs.6.94 Cr from exchange translation due to FX volatility on foreign operations.