Affle Q2 revenue reaches Rs 784 crore, keeps 20%-plus outlook

Affle 3i Limited reported its highest quarterly revenue, earnings before interest, tax, depreciation and amortisation (EBITDA), profit after tax (PAT) and consumer conversions in Q2 FY2027. Revenue reached Rs 784 crore, up 21.2% year-on-year and 4.9% sequentially, while management retained its 20%-plus medium-term growth guidance.

How did Affle perform in Q2 and H1 FY2027?

Affle delivered record Q2 FY2027 revenue of Rs 784 crore, EBITDA of Rs 181 crore and PAT of Rs 130 crore. Revenue rose 21.2% year-on-year and 4.9% from the preceding quarter, marking the company’s 15th consecutive quarter of sequential topline growth.

Affle reported H1 FY2027 revenue of Rs 1,531 crore, EBITDA of Rs 349 crore and PAT of Rs 258 crore. EBITDA increased faster than revenue in the first half, rising 22.1% against revenue growth of 20.8%, while PAT increased 19.5%; EBITDA margin was 22.8% and PAT margin was 16.4%.

Q2 EBITDA margin reached 23.2%, compared with 22.8% for H1 FY2027, and PAT margin was 16.2%, compared with 16.4% in the first half. The company said Q2 was its highest-ever quarterly run-rate for revenue, EBITDA, PAT and consumer conversions.

What drove Affle’s CPCU revenue growth?

Affle’s cost per converted user (CPCU) business generated Q2 FY2027 revenue of Rs 782 crore, up approximately 23.7% year-on-year. Consumer conversions rose approximately 18.2% to 128.93 million, while the CPCU rate improved to Rs 60.6.

Management attributed the higher CPCU rate to its focus on higher-lifetime-value user conversions and verticals that contribute higher CPCU revenue. It also cited increased penetration in Developed Markets, which accounted for 26.3% of Q2 revenue and grew approximately 22.3% year-on-year.

For H1 FY2027, CPCU revenue was Rs 1,527 crore, up 22.0% year-on-year, from 252.85 million consumer conversions at a CPCU rate of Rs 60.4. The Q2 rate of Rs 60.6 was Rs 0.2 above the H1 average, and Affle said its platform delivered approximately 1,000 consumer conversions every minute during the first half.

Why did Affle’s Q2 profitability improve?

Affle’s Q2 EBITDA margin expanded by 56 basis points year-on-year and 72 basis points sequentially to 23.2%. EBITDA rose 24.2% year-on-year to Rs 181 crore, supported by favourable data and inventory costs, AI-powered optimisation and the scalability of its cloud platform, management said.

Employee costs increased at a more measured pace both year-on-year and sequentially, according to management, which linked this to AI-led productivity gains. These factors were partly offset by an 11.0% sequential increase in other expenses, largely because of higher business-promotion activities.

Profit before tax from operations, excluding other income, was Rs 140 crore in Q2 FY2027, increasing 23.3% year-on-year and 5.0% sequentially. PAT rose at a slower 17.4% year-on-year pace to Rs 130 crore because foreign-exchange volatility affected other income, while depreciation and amortisation increased in line with Affle’s historical Q2 pattern.

Affle applies a four-year amortisation policy for capitalised technology after projects move from work-in-progress to assets put to use. It excludes research-phase and technical-feasibility costs from capitalisation; management said H1 EBITDA margin of 22.8% reflected revenue growth, gross-margin improvement and cost management.

Which markets contributed most to Affle’s Q2 growth?

Affle’s India and Global Emerging Markets segment remained its larger Q2 FY2027 revenue contributor, accounting for 73.7% of revenue and growing approximately 20.8% year-on-year. Developed Markets represented the other 26.3% but grew faster, at approximately 22.3% year-on-year.

India’s adjusted revenue increased approximately 18.1% year-on-year, below the 20.8% growth reported for India and Global Emerging Markets together. Management said the India comparison reflected a stronger prior-year base because Diwali fell in early October, bringing pre-Diwali festivities, e-commerce events and related advertising spending into the previous year’s Q2.

Affle said sales activity and campaign delivery in Developed Markets supported new advertiser additions and increased wallet share among global advertisers. In India, its Orange Health Labs campaign recorded a 53% sequential increase in purchases, 39% revenue growth and more than doubled share of voice.

In the United States, Affle said its campaign for CrazyGames’ Space Waves title produced a twofold increase in total revenue, more than 200% growth in repeat ad-revenue event conversions and a 1.8-times increase in conversion rate. The disclosed examples covered healthcare, consumer electronics and gaming during Q2 FY2027.

Can Affle sustain its stated medium-term growth outlook?

Affle maintained its 20%-plus medium-term growth guidance after H1 FY2027 revenue increased 20.8% year-on-year to Rs 1,531 crore. Management said performance remained consistent with its outlook despite geopolitical tensions and regulatory and macroeconomic headwinds affecting categories including real-money gaming and financial technology.

Management’s FY2027 priorities are to sustain growth momentum, deepen competitive differentiation and scale the CPCU business across Developed and Emerging Markets. These priorities underpin its previously stated 10X growth vision, including further platform capabilities across mobile, connected television and agentic or autonomous intelligent connected devices.

Operating cash flow (OCF) equalled 75.6% of PAT in Q2 FY2027, lifting the H1 OCF-to-PAT ratio to 64.9%. Affle said there were no material changes in collection risk and that its full-year endeavour is to maintain an OCF-to-PAT ratio of approximately 80% through working-capital management and cash-flow generation.

Affle also disclosed 40 filed patents and more than 300 unique enforceable patent claims. Its newly filed patent application covers mobility-led out-of-home advertising across autonomous and connected vehicles, which management said would extend CPCU capabilities to connected vehicle fleets through measurable consumer interactions.

Conclusion

Affle’s first-half figures show revenue, EBITDA and PAT rising 20.8%, 22.1% and 19.5%, respectively, with Developed Markets growing slightly faster than India and Global Emerging Markets. The Q2 margin improvement was linked by management to data and inventory costs, optimisation and cloud-platform scale, even as other expenses rose sequentially.

The next disclosed measure to watch is management’s approximately 80% full-year OCF-to-PAT objective, following the 64.9% H1 ratio. Affle also plans to scale its CPCU business in Developed and Emerging Markets and expand capabilities across connected-device formats in support of its stated 10X growth vision.