AFFLE
Small CapAffle 3i Limited
IT
Affle 3i Limited is a global technology company enabling AI-led solutions in digital advertising, driving performance across connected devices. It delivers consumer recommendations and conversions through relevant mobile advertising for leading global brands, primarily operating on a Cost Per Converted User (CPCU) business model.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is acceptable, price trend argues for patience, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
medium confidence · 4/4 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Average · 42/100margin compression · Rev +20% YoY · PAT +17% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹724 Cr | +20.3% | +1.0% |
| EBITDA | ₹161 Cr | +20.1% | -1.2% |
| Operating margin | 22.0% | +0 bps | -100 bps |
| PAT | ₹120 Cr | +16.5% | +0.8% |
| PAT margin | 16.6% | -54 bps | -3 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Affle 3i reported robust Q4 FY26 results with revenue up 20.3% YoY and PAT up 16.0% YoY. Full-year FY26 saw revenue grow 19.5% and PAT 19.1% YoY, driven by strong CPCU conversions and broad-based growth across markets.
The company continues to demonstrate strong top-line growth and profitability, supported by its CPCU model and AI-led solutions. However, the significant increase in inventory and data costs, outpacing revenue growth, warrants close monitoring for potential margin pressure despite stable EBITDA margins in Q4 FY26.
Revenue Split by Geography (Q4 FY2026)
Latest issuer-disclosed distribution across 2 reported categories.
AI-led Solutions
Company leverages Authentic, Actionable and Augmented Intelligence (Affle AI) for digital advertising and operational productivity.
CPCU Business Model
99.2% of FY2026 revenue from contracts with customers contributed by the ROI-driven Cost Per Converted User (CPCU) model.
Verticalized Focus
Verticalized approach within fast-growing resilient industry segments (E, F, G, H Categories) driving 100% of revenue from direct customers.
Global Reach
Global reach across key regions including Asia, North America, South America, Europe, and Africa, encompassing developed and emerging markets.
Digital Advertising Growth
The company operates in the digital advertising sector, which benefits from increasing digital consumption and brand spending.
Privacy-First Solutions
Affle's proprietary AI tech stack leverages privacy-first predictive intelligence to identify quality shoppers at scale, as demonstrated with Instacart.
Rising Inventory and Data Costs
Inventory and Data Costs increased by 25.6% YoY in Q4 FY26 and 21.8% YoY in FY26, outpacing revenue growth.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Both YoY and QoQ comparisons are relevant. YoY reflects the underlying growth trend in a business that may have seasonal variations, while QoQ provides insight into sequential momentum and operational execution.
Q4 FY26 Number of Conversions
120.3 million, up from 88.4 million in Q4 FY25 (+36.2% YoY).
Q4 FY26 Average CPCU
INR 60.0, up from INR 57.8 in Q4 FY25 (+3.8% YoY).
Q4 FY26 CPCU Revenue
INR 7,217 million, up from INR 6,007 million in Q4 FY25 (+20.1% YoY).
FY26 Number of Conversions
456.0 million, up from 392.8 million in FY25 (+16.1% YoY).
10x Decadal Growth Vision
Management's vision is to power 10x decadal growth by maximizing measurable business outcomes and driving real-world impact.
AI-driven Innovation
Focus on leveraging Affle AI, AI agents for operational productivity, and AI-driven hyper-contextual creative generation.
Platform & Product Leadership
Committed to leading with platform and product innovation to power the connected ecosystem.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Inventory and Data Costs Growth | Increased 25.6% YoY in Q4 FY26. | Whether cost growth continues to outpace revenue growth, impacting gross margins. |
| EBITDA Margin | 22.3% in Q4 FY26 (vs 22.2% in Q4 FY25) and 22.5% in FY26 (vs 21.3% in FY25). | Sustained stability or improvement in EBITDA margins despite rising input costs. |
| Number of Conversions Growth | 120.3 million in Q4 FY26 (+36.2% YoY). | Continued strong growth in conversions, indicating demand for the CPCU model. |
| Average CPCU Trend | INR 60.0 in Q4 FY26 (+3.8% YoY). | Ability to maintain or increase average CPCU, reflecting pricing power and value delivery. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Show extracted source claims
Affle aims to deliver 10X decadal growth as part of its Affle 3i vision.
"goal to deliver 10X decadal growth"
Outcome check: Revenue YoY averaged 19.7% across 2 later quarter(s).
The festive quarter (Q3) in developed markets should be stronger than what was seen in Q2.
"The festive quarter in developed markets should be stronger than what we have seen in Q2."
Outcome check: Revenue YoY averaged 19.7% across 2 later quarter(s).
Affle expects to drive sustainable growth through FY2026 and beyond, supported by disciplined financial management and robust operating cash flows.
"driving sustainable growth through FY2026 and beyond"
Outcome check: Revenue YoY averaged 19.7% across 2 later quarter(s).
Affle is fairly confident of having a reasonably good quarter in Q3, given the pipeline of budgets for the festive quarter.
"fairly confident that we should have a reasonably good quarter in Q3"
Outcome check: Revenue YoY averaged 19.7% across 2 later quarter(s).
Trend score and candlestick chart
44NeutralSMA20 -7.4% / mo
Technical chart
AFFLEdaily · 6M-8.0%Technical trend read
Bullish setupTrend is constructive — long-term trend unclear. RSI 56.
- SMA20 rising (~1.0% over last month) — short-term momentum positive.
- RSI(14) at 56 — sideways, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- 18% off 52W high · 20% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Balance sheet contributes 11/15 to the score.
- Growth contributes 17/25 to the score.
Main drags
- Fair-value margin of safety is negative at -29.4%.
- Valuation is weaker at 2/30; verify the latest quarterly trend.
- Quality is weaker at 7/20; verify the latest quarterly trend.
Blended valuation: PE, EV/EBITDA, FCF yield, and balance-sheet checks
For this sector, IndiaPulse uses a blended lens rather than relying on a single valuation ratio.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Management has 75% delivered/partly-delivered outcomes on 4 checked claims, with 1 adverse claim outcome. It ranks around the 73rd percentile of the scored universe and 67th percentile within IT. No major sub-score weakness stands out.
Healthy Trust: 4/4 extracted management claims have outcome checks; 75% were fully delivered and 0 were partially delivered. 1 claim(s) were contradicted or failed.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · IT: 67th pctile, median 68 · Small: 77th pctile, median 65
4/4 claims checked. Use as directional, not final.
4/4 claims checked · 1 contradicted/failed claim
How to read this Trust Score
Healthy Trust · medium confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 0.6%.
- ▸4 years of positive FCF.
- ▸Debt/equity is 0.00.
Trust risks
- ▸No major Trust Lite risk flags.
Intrinsic value
Fundamentals
Valuation
- P/E
- 46.40
- P/B
- 5.80
- EV/EBITDA
- 28.77
- Market Cap
- 21102.00Cr
Profitability
- ROE
- 13.80%
- ROCE
- 16.80%
- ROA
- 10.29%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 39.00%
- EPS 5Y
- 28.00%
- Revenue 3Y
- 24.00%
- EPS 3Y
- 23.00%
Balance Sheet
- Debt/Equity
- 0.00
- Interest Coverage
- 122.00×
- Altman Z
- 8.51
- Book Value
- 259.00
Cash Flow
- FCF Yield
- 0.61%
- FCF Positive Y
- 4/5
- OCF
- 502.00 Cr
- EPS TTM
- 32.31
Shareholding
- Promoter Hold
- 54.92%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 27%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in IT — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.