Affle 3i Q3 Profit Jumps 19% as Revenue Crosses ₹700 Crore

Strong Quarterly Performance

Digital advertising firm Affle 3i Ltd. announced a robust financial performance for the third quarter of fiscal year 2026, ending December 31, 2025. The company reported a significant 19% year-on-year increase in its consolidated net profit, which reached ₹119.3 crore. This growth was accompanied by a landmark achievement in revenue, which crossed the ₹700 crore threshold for the first time in a single quarter. The positive results reflect healthy expansion across various industry verticals and geographical markets, underscoring the company's resilient business model in a dynamic global environment.

Detailed Financial Breakdown

The company's revenue from operations for Q3 FY26 saw a 19.2% rise, climbing to ₹717.4 crore from ₹601.6 crore in the corresponding quarter of the previous fiscal year. This top-line growth was complemented by improved operational efficiency. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) grew by an impressive 24.2% year-on-year to ₹163 crore. Furthermore, the operating margin expanded to 22.7%, an improvement from 21.8% recorded in the same period a year earlier. This indicates the company's ability to manage costs effectively while scaling its operations.

CPCU Business Model Fuels Growth

The primary engine behind Affle 3i's consistent growth remains its Cost Per Converted User (CPCU) business segment. Revenue from the CPCU model increased by 19.6% year-on-year, contributing ₹713.6 crore to the total revenue for the quarter. This model, which ties advertising spend directly to tangible user actions and conversions, continues to find strong traction among marketers. The company successfully delivered 33.6 crore converted users for its clients during the first nine months of FY26, highlighting the effectiveness and scale of its platform.

Management Commentary on Milestone Quarter

Anuj Khanna Sohum, the Chairperson, MD & CEO of Affle 3i, commented on the strong quarterly numbers. He described Q3 FY26 as a significant milestone, marking the company's highest-ever quarterly revenue, EBITDA, profit, and consumer conversions. Sohum attributed this success to consistent execution and the scalability of Affle’s AI-powered Consumer Platform Stack. He emphasized that the platform's performance remains strong even within a challenging global economic landscape, demonstrating its value proposition to advertisers worldwide.

Strategic Focus on AI and Innovation

Looking ahead, Affle 3i is committed to bolstering its technological capabilities. The company plans to leverage its strong balance sheet and healthy operating cash flows to continue investing in technology, talent, and strategic growth initiatives under its 'Affle 3i' vision. A key area of focus is the expansion of its agentic AI engine, Niko. The company is integrating Niko across its consumer platform to enhance automation and operational efficiency. This strategic push into advanced AI is expected to widen the company's competitive advantage while maintaining a disciplined approach to capital allocation and innovation.

Q3 FY26 Financial Highlights

Market Reaction and Stock Performance

Investors responded positively to the strong earnings report. On Friday, January 30, 2026, the shares of Affle 3i Ltd. closed higher on the National Stock Exchange (NSE). The stock ended the trading session at ₹1,559.00, marking a gain of 1.58% for the day. This uptick reflects market confidence in the company's growth trajectory and its ability to consistently deliver strong financial results.

Conclusion

Affle 3i's performance in the third quarter of FY26 solidifies its position as a key player in the digital marketing industry. The company's ability to surpass the ₹700 crore revenue mark while delivering strong profit growth demonstrates the strength of its CPCU business model and its advanced technology platform. With continued investments in AI and a clear strategic vision, Affle 3i appears well-positioned to capitalize on future opportunities and sustain its growth momentum.