Affle 3i Limited (AFFLE)
🎯 Key Takeaways
- Affle 3i Limited is in a strategic growth phase, actively expanding its technology footprint through IP creation and targeted acquisitions. Management is leveraging its AI and digital advertising expertise to strengthen defensibility and enter developed markets, as evidenced by recent patent grants and asset acquisitions.
- Revenue grew 1% QoQ to ₹724 in Q4FY26.
- ⚠️ Integration risk from the AdColony asset acquisition, which must be executed within 7 business days and may strain near-term cash flows.
📖 The Story
Affle 3i Limited is in a strategic growth phase, actively expanding its technology footprint through IP creation and targeted acquisitions. Management is leveraging its AI and digital advertising expertise to strengthen defensibility and enter developed markets, as evidenced by recent patent grants and asset acquisitions. The company maintains a strong balance sheet with no debt and rising profitability, but faces near-term execution risks tied to integration and capital deployment.
📰 What's Happening
In the last three quarters, management has executed key strategic moves: acquiring AdColony's assets for $4.70 million to bolster its mobile ad SDK and publisher mediation platform, and securing an Indian patent for fraud detection technology that reinforces its AI-powered Consumer Platform Stack. Additionally, the board approved the allotment of 7.4 million convertible warrants to promoter Affle Holdings at a premium, requiring only 25% upfront payment with the balance due within 18 months, signaling potential future dilution upon conversion.
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 |
Financial performance shows consistent revenue and margin expansion over the past eight quarters, with revenue growing from ₹520 crore in Q1FY25 to ₹724 crore in Q4FY26 and operating margin stabilizing around 22%. Net profit and EPS have risen steadily, reflecting operational efficiency and scale. This upward trajectory aligns with management's focus on scaling high-margin digital advertising services, though growth has shown signs of moderation in the most recent quarter.
🔮 Management Outlook & What's Next
Management has not provided formal forward guidance in the latest filings, but strategic actions indicate intent to scale through technology acquisition and IP protection. The patent grant and AdColony asset purchase underscore a focus on strengthening competitive moats and expanding into higher-value markets. The convertible warrant issuance suggests capital efficiency is being prioritized through non-dilutive initial funding, with conversion contingent on future payments.
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 capital structure with negligible debt and growing reserves, supporting aggressive capital deployment. Equity remains stable at ₹28 crore, while total assets have increased to ₹4,421 crore in the latest period, driven by investments in intangible assets and acquisitions. This suggests management is reinvesting earnings to fund growth rather than returning capital, consistent with a growth-oriented capital allocation strategy.
💰 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
1. Integration risk from the AdColony asset acquisition, which must be executed within 7 business days and may strain near-term cash flows. 2. Execution risk around patent commercialization and scalability of new technology in competitive markets. 3. Dilution risk from the 7.4 million convertible warrants, which could increase share supply upon conversion. 4. Moderating revenue growth in the latest quarters, suggesting possible market saturation or macro headwinds in core digital advertising segments.
📋 Recent Filings
-
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...
-
🟡 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 ...
-
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...
-
🟡 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...
-
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...
-
🔴 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...
-
🔴 Insider Trading 12 June 2026Affle 3i Limited disclosed insider trading activity involving promoter group transactions under SEBI's Substantial Acquisition of Shares and Takeovers...
-
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-...
-
🟡 voting results 10 June 2026Affle 3i Limited altered its Memorandum and Articles of Association effective June 10, 2026, following shareholder approval via postal ballot. The ame...
-
🟡 voting results 10 June 2026No summary available
🧠 Analyst's Read
Affle 3i is executing a clear growth strategy through technology acquisitions and IP development, supported by solid profitability and a clean balance sheet. However, near-term risks center on integration execution and the dilutive potential of warrant conversions. Investors should monitor the pace of AdColony integration and the commercial impact of new patents as indicators of strategic momentum.
Based on filing content and financial data. Not a recommendation.
Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-07-05.
📡 Get AI alerts when AFFLE files new disclosures
Track AFFLE filings, board meetings, and corporate actions. Free email alerts at 5 PM.
Track AFFLE — FreeFree account · No credit card · 2 AI queries/day
© 2026 StockFin.ai — AI-powered Indian stock research