Affle 3i (AFFLE) Q2 25/26 earnings summary

Executive summary

• Achieved record quarterly revenue, EBITDA, and PAT in Q2 FY2026, with 19.1% YoY revenue growth and 28.9% YoY EBITDA growth, driven by broad-based demand, platform innovation, and AI-led solutions in digital advertising.

• Sixth consecutive quarter of margin expansion and 10th consecutive quarter of sequential top-line and EBITDA growth.

• Expanded global reach, with 73.9% of revenue from India & Emerging Markets and 26.1% from Developed Markets in Q2 FY2026.

• Maintained a verticalized focus on high-growth categories such as e-commerce, fintech, gaming, and healthtech.

• Unaudited standalone and consolidated financial results for Q2 and H1 FY2025-26 were approved by the Board on November 1, 2025.

Financial highlights

• Q2 FY2026 consolidated revenue: INR 6,467.18 million (19.1% YoY growth); H1 FY2026 revenue: INR 12,675 million.

• Q2 FY2026 EBITDA: INR 1,461 million (28.9% YoY growth), margin at 22.6%; PAT: INR 1,105.13 million (20.1% YoY growth), PAT margin at 16.5%.

• H1 FY2026 EBITDA: INR 2,858 million (31.2% YoY growth); H1 FY2026 net profit: INR 2,160.13 million.

• Operating cash flows for H1 FY2026 reached INR 4,260 million, reflecting robust cash generation.

• Earnings per share (consolidated, basic) for Q2 FY2026 was INR 7.88, up from INR 6.56 in Q2 FY2024-25.

Outlook and guidance

• Confident of maintaining medium-term 20%+ revenue growth, despite near-term headwinds from RMG in India and tariff uncertainties in the US.

• Management targets decadal 10x growth, leveraging AI-driven innovation and expanding platform capabilities.

• Early festive season in India and robust Q3 pipeline expected to support continued growth.

• Margin levels expected to be sustainable in the medium term due to operational efficiencies and disciplined cost management.

• The company continues to invest QIP and preferential issue proceeds in fixed and other deposits, with significant funds yet to be deployed for specified purposes.