Affle 3i Limited (AFFLE)
🎯 Key Takeaways
- Affle 3i Limited is in a strategic growth phase, actively expanding its technological capabilities and market footprint through targeted acquisitions and IP development. Management is leveraging its AI-driven advertising platform to drive margin expansion and capture higher-value markets, particularly in developed economies.
- Revenue grew 1% QoQ to ₹724 in Q4FY26.
- ⚠️ The company's growth strategy depends on successful integration of acquired assets like AdColony and commercialization of its patented fraud detection
📖 The Story
Affle 3i Limited is in a strategic growth phase, actively expanding its technological capabilities and market footprint through targeted acquisitions and IP development. Management is leveraging its AI-driven advertising platform to drive margin expansion and capture higher-value markets, particularly in developed economies. The company maintains a strong balance sheet with minimal debt and consistent profitability, though recent share price performance has lagged broader market trends.
📰 What's Happening
In Q1 FY26, the company acquired AdColony's strategic assets from Digital Turbine for $4.70 million in cash, adding a recognized mobile ad SDK and publisher mediation platform to strengthen its consumer platform and expand into developed markets. It also received an Indian patent for its fraud detection technology using machine learning to identify bot traffic in real time, reinforcing its IP portfolio of 18 grants from 39 filings. Additionally, it allotted 7.4 million convertible warrants to promoter Affle Holdings Pte. Ltd. at Rs 1,487 per warrant, with 25% upfront payment and the balance due within 18 months, convertible into equity shares upon full payment.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Q1FY25 | Q2FY25 | Q3FY25 | Q4FY25 | Q1FY26 | Q2FY26 | Q3FY26 | Q4FY26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 520 | 543 | 602 | 602 | 621 | 647 | 717 | 724 |
| Operating Profit | 130 | 142 | 152 | 153 | 157 | 168 | 181 | 182 |
| OPM % | 20.1% | 20.9% | 21.8% | 22.2% | 22.5% | 22.6% | 22.7% | 22.3% |
| Net Profit | 87 | 92 | 100 | 103 | 106 | 111 | 119 | 120 |
| EPS | ₹6.18 | ₹6.56 | ₹7.15 | ₹7.35 | ₹7.52 | ₹7.88 | ₹8.50 | ₹8.51 |
Revenue has shown consistent growth over the past eight quarters, rising from ₹520 crore in Q1 FY25 to ₹724 crore in Q4 FY26, with operating margins stabilizing around 22% despite macroeconomic pressures. Net profit and EPS have increased in parallel, indicating operating leverage is supporting bottom-line expansion. The upward trend in revenue and profitability aligns with management's focus on scaling high-margin digital advertising solutions and integrating newly acquired assets to drive further growth.
🔮 Management Outlook & What's Next
Management has not provided explicit forward guidance on revenue or margins in the latest filings, but strategic actions — including the AdColony acquisition, patent grant, and capital restructuring — signal intent to scale high-growth digital advertising technologies and expand into premium markets. The company is focused on strengthening its IP portfolio and platform capabilities to drive sustainable growth, with capital allocation directed toward strategic investments rather than immediate returns.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | 2024-2025 | 2025-2026 | 2025-2026 | 2025-2026 | 2025-2026 |
|---|---|---|---|---|---|
| Equity Capital | 28 | 28 | 28 | 28 | 28 |
| Reserves | 2,918 | — | 3,228 | — | 3,624 |
| Borrowings | 77 | — | 35 | — | 12 |
| Total Liabilities | 675 | — | 658 | — | 769 |
| Fixed Assets | 3 | — | 4 | — | 4 |
| Investments | 63 | — | 113 | — | 114 |
| Total Assets | 3,622 | — | 3,914 | — | 4,421 |
The balance sheet reflects a strong equity base of ₹28 crore with reserves growing from ₹3,228 crore to ₹3,624 crore, indicating retained earnings are being accumulated. Borrowings remain negligible at ₹12 crore, suggesting a conservative capital structure. Total assets have increased to ₹4,421 crore, up from ₹3,914 crore, driven by investments in intangible assets and acquisitions, supporting the company's expansion strategy without significant leverage.
💰 Cash Flow Statement (₹ Cr)
| Item | 2020-2021 | 2020-2021 |
|---|---|---|
| Operating | +52 | +102 |
| Investing | -123 | -175 |
| Financing | +40 | +53 |
| Net Cash Flow | — | — |
⚖️ Peer Comparison — IT - Services
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| L&T Technology Services Limited | 37,049 | 28.5 | — | — | — |
| Inventurus Knowledge Solutions Limited | 27,371 | 37.5 | — | — | — |
| Tata Technologies Limited | 25,193 | 39.0 | — | — | — |
| Netweb Technologies India Limited | 21,868 | 106.3 | — | — | — |
| Affle 3i Limited | 20,797 | 45.6 | 15.4% | 12.4% | 0.00 |
| SAGILITY LIMITED | 19,662 | 21.3 | — | — | — |
| Black Box Limited | 15,597 | 79.7 | — | — | — |
| Cyient Limited | 9,676 | 15.1 | — | — | — |
| Amagi Media Labs Limited | 8,751 | — | — | — | — |
| Datamatics Global Services Limited | 4,385 | 20.6 | — | — | — |
⚠️ Risk Factors
The company's growth strategy depends on successful integration of acquired assets like AdColony and commercialization of its patented fraud detection technology, which remains unproven at scale in developed markets. Exposure to volatile digital advertising spend and competition from larger global players pose ongoing pressure on margins. Additionally, the reliance on a concentrated IP portfolio creates technological risk if patents are challenged or circumvented.
📋 Recent Filings
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🔴 Corporate Action 27 July 2026Affle 3i Limited announced the allotment of 83,000 equity shares of Rs. 2 each to its Employee Stock Option Scheme Trust on July 25, 2026, increasing ...
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Announcement 14 July 2026Affle 3i Limited announced it participated in an analyst meeting with IIFL Capital PMS on July 14, 2026, with no unpublished price sensitive informati...
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Announcement 2 July 2026Affle 3i Limited announced it participated in analyst and institutional investor meetings on July 2, 2026, including a one-on-one with FYERS Asset Man...
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🟡 deviation variation 24 June 2026Affle 3i Limited announced it received an Indian patent for its fraud detection technology that uses machine learning to identify bot traffic in real ...
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Announcement 23 June 2026Affle 3i Limited announced it participated in a one-on-one analyst call with Banyan Tree Advisors on June 23, 2026, as part of routine investor engage...
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🟡 Board Meeting 18 June 2026Affle 3i Limited announced the allotment of 7.4 million convertible warrants to promoter Affle Holdings Pte. Ltd. at Rs 1,487 per warrant, including a...
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Announcement 16 June 2026Affle 3i Limited announced a strategic acquisition of AdColony's technology assets and trademark from DT, strengthening its consumer platform and acce...
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🔴 Announcement 13 June 2026Affle 3i Limited announced it will acquire AdColony's strategic assets from Digital Turbine for $4.70 million in cash, adding a recognized mobile ad S...
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🔴 Insider Trading 12 June 2026Affle 3i Limited disclosed insider trading activity involving promoter group transactions under SEBI's Substantial Acquisition of Shares and Takeovers...
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Announcement 11 June 2026Affle 3i Limited announced it has been granted an Indian patent for a system that monitors and integrates conversational AI agents into a trust-score-...
🧠 Analyst's Read
Affle 3i is executing a clear strategy to scale its AI-powered advertising platform through acquisitions and IP development, supported by strong cash flow generation and a pristine balance sheet. Investors should monitor the integration of AdColony assets and the commercial impact of its new patent in premium markets, as these will determine the pace of margin expansion and market share gains in the coming quarters.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-08-02.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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