Q2 FY27 results analysis · October 30, 2026
Affle 3i Q2 FY27 Results Analysis: Revenue Jumps 21% to Record, EBITDA Margin Enters Guided Band
+17.4%PAT year on year, Rs. 129.79 Cr
Source: Quarterly results filing (BSE)
Quick summary
Affle 3i Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 783.59 Cr (+21.16% YoY) and PAT growth of +17.44% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | October 30, 2026 |
|---|---|
| Revenue (Q2) | Rs. 783.59 Cr (+21.16% YoY) |
| PAT (Q2) | Rs. 129.79 Cr (+17.44% YoY) |
| EBITDA margin | 23.16% (+57 bps YoY) |
| EPS (Q2) | Rs. 9.23 (+17.13% YoY) |
Quarter Snapshot
Affle delivered 21.16% YoY revenue growth to a record Rs.783.59 Cr with EBITDA margin entering the guided 23-25% band for the first time at 23.16%, aided by AI-led cost control (employee costs +4.94% YoY). The key offset is cash quality: OCF/PAT of 64.89% in H1 sits well below management's 80-85% target for Q3 FY27 after a receivables build, while the Bobble Rs.134.63 Cr exposure remains open pending the Nov 25 hearing.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue/demand | "in-line to ahead on the demand tide" | +21.16% YoY to a record Rs.783.59 Cr | Played out |
| EBITDA margin | "likely stays around the low-22s" | 23.16% (+73 bps QoQ) — entered the guided band — better | Contradicted |
| Inventory-&-data ratio | "the single line that decides the 23–25% bridge" | 62.48%, −72 bps QoQ (still +123 bps YoY) | Partially |
| FX effect on DM/margins | tailwind to DM revenue, cost inflation offset | geography split undisclosed; other income −10.0% YoY | Not observable |
| OCF-to-PAT step-up | "H1 FY27 needs a marked step-up in conversion" | 64.89% vs 84.80% H1 FY26 — worse | Contradicted |
| AdColony / larger deal | in-quarter closing would be an incremental event | no closing; conditions precedent pending (filing note 8) — unchanged | Played out |
| Bobble impairment | any decision on the Rs.135.83 Cr exposure | no impairment; SC stayed CIRP Oct 16 — open | Played out |
| MeitY gaming-ad prohibition impact | any quantification | none in the filing; revenue still +21.2% | Not observable |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| ~20% organic revenue CAGR | medium-term guidance, reiterated on the Q1 FY27 earnings call | Revenue +21.16% YoY | On Track |
| EBITDA margin 23–25% "over a period of time" (company definition) | management margin guidance, reiterated on recent calls | 23.16% (first quarter inside the band) | On Track |
| Better margin expansion within FY2027, especially Developed Markets | management commentary on prior-quarter calls | +73 bps QoQ, +57 bps YoY — early | On Track |
| Modeling frame: 18–20% revenue / 23–25% EBITDA growth | Q3 FY26 earnings call (February 2026) | +21.16% / +24.18% | Met |
| OCF-to-PAT 80–85% by Q3 FY27 | Q1 FY27 earnings call (CFO cash-flow normalization guidance) | H1: 64.89% (vs 84.80% H1 FY26) | Stretch |
| Large acquisition close by early 2027 | Q1 FY27 earnings call (M&A timeline) | no update in the filing | Too Early |
| AdColony: 100k+ publishers / 500M+ devices in FY2027 | Q1 FY27 results release | conditions precedent still pending (filing note 8) | Too Early |
| Fund-raising objects by March 2027 | monitoring-agency disclosures | warrant conversion proceeding; post-quarter allotments done | On Track |
Key Investment Insights
Key Positives
- Revenue grew 21.16% YoY to Rs.783.59 Cr, the 15th consecutive quarter of sequential growth (+4.88% QoQ)
- EBITDA margin of 23.16% entered the guided 23-25% band for the first time, up 73 bps QoQ and 57 bps YoY
- EBITDA grew 24.18% YoY to Rs.181.44 Cr, outpacing revenue growth
- Employee costs grew only 4.94% YoY against 21.16% revenue growth
- Standalone PAT grew 72.12% YoY with standalone EBITDA margin nearly doubling to 20.18% from 10.83%
- Net cash of Rs.2,064.83 Cr with total borrowings of just Rs.2.20 Cr
- Inventory & data cost ratio receded 72 bps QoQ to 62.48%, the first sequential improvement in the 7-8 quarter compression stretch
- Supreme Court stayed Bobble CIRP on Oct 16, 2026 with no impairment booked on the Rs.134.63 Cr exposure
Risk Factors
- OCF/PAT of 64.89% in H1 FY27 vs management's guided 80-85% by Q3 FY27, with CFO declining 8.5% YoY to Rs.167.58 Cr
- Inventory & data costs at 62.48% of revenue remain up 123 bps YoY despite the QoQ improvement
- D&A grew 29.26% YoY, holding PAT growth (+17.44%) below EBITDA growth (+24.18%)
- Other income fell 10.00% YoY to Rs.20.05 Cr on treasury deployment and FX effects
- AdColony acquisition still has conditions precedent uncompleted, with acquisition accounting deferred
- Bobble Rs.134.63 Cr exposure remains open pending the Nov 25, 2026 hearing despite the SC stay
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.