Affle Q3 FY2026 Revenue Jumps 19.2% to INR 7.17 Billion

Introduction

Affle 3i Limited announced a robust financial performance for the third quarter of fiscal year 2026, ending December 31, 2025. The company surpassed a significant milestone, crossing the INR 7 billion quarterly revenue run-rate. This achievement was accompanied by record-high quarterly EBITDA, Profit After Tax (PAT), and Cost Per Converted User (CPCU) conversions, underscoring the company's resilience and strategic execution in a challenging global environment.

Record Financial Performance in Q3

For the third quarter, Affle reported a consolidated revenue from operations of INR 7.17 billion, marking a substantial 19.2% year-over-year (YoY) increase and a 10.9% quarter-over-quarter (QoQ) growth. This consistent top-line expansion reflects the strength of its AI-powered consumer platform and broad-based demand across various industry verticals. The company's performance for the nine-month period of FY2026 also remained strong, with revenue growing 19.3% YoY to INR 19.85 billion.

Profitability and Margin Expansion

A sustained focus on productivity and innovation translated into impressive profitability. EBITDA for the quarter stood at INR 1.63 billion, a significant 24.1% YoY and 11.6% QoQ increase. This marked the seventh consecutive quarter of sequential margin expansion for the company, with the EBITDA margin reaching 22.7%. Profit After Tax (PAT) grew to INR 1.19 billion, up 19.1% YoY. For the nine-month period, EBITDA and PAT recorded impressive YoY growth of 28.5% and 20.3%, respectively.

Key Financial Metrics Q3 FY2026

CPCU Business Drives Growth

The Cost Per Converted User (CPCU) business segment continued to be a primary growth engine. During the quarter, the company executed 119.7 million conversions at its highest-ever CPCU rate of INR 59.6. This performance generated revenue of INR 7.14 billion from the CPCU business alone, reflecting a 19.6% YoY increase and highlighting the platform's effectiveness in delivering tangible results for advertisers.

Geographic Revenue Diversification

Affle demonstrated balanced growth across its key markets. India and Global Emerging Markets collectively contributed 73.9% to the total revenue, growing by 19.8% YoY. This growth was achieved despite the full-quarter impact of regulatory changes affecting the real money gaming (RMG) sector in India. Developed Markets also delivered a robust performance, contributing 26.1% to revenue with a strong growth of 17.8% YoY, driven by deeper customer engagement and new client additions.

AI and International Expansion as Core Strategy

Management attributed the company's success to its technological differentiation, particularly its AI-driven innovation. The Niko agentic AI optimization engine is enhancing automation across critical functions like bidding, targeting, and budget allocation. Furthermore, Affle is making conscious investments in data and inventory costs to build verticalized intelligence for international markets. Approximately 10% of these costs are considered strategic investments aimed at unlocking future growth potential in developed economies.

Operational Efficiencies and Cost Management

Affle has effectively managed its operating expenses (OPEX) to ensure they do not grow in pace with revenue. Despite wage hikes, employee benefit expenses remained largely flat sequentially. This was achieved through productivity gains from AI automation and the centralization of certain functions in lower-cost markets like India and Southeast Asia. This operational rigor has been a key factor in the company's consistent margin expansion.

Management Outlook and Resilience

The management team expressed confidence in the company's trajectory. For the fourth quarter of FY2026, performance is expected to be better than or at least flat compared to Q3, contingent on geopolitical stability allowing for normal advertising budget cycles. The company confirmed its resilience, citing its cloud-based infrastructure and disaster management plans. It is also fully prepared for India's Digital Personal Data Protection (DPDP) Act, proactively adhering to international data privacy standards, which strengthens trust with global partners.

Analysis of Growth Strategy

The Q3 results align with Affle's long-term 'Affle 3i 10x growth vision'. The strategic investments in AI and international market verticalization are designed to shift the company's organic growth into a higher gear. By building deeper intelligence across verticals like e-commerce, fintech, and entertainment in developed markets, Affle is positioning itself to capture a larger share of the global digital advertising spend. The consistent financial performance provides a solid foundation for these strategic initiatives.

Conclusion

Affle 3i Limited's third-quarter performance for FY2026 demonstrates strong execution and strategic clarity. By delivering record revenue and profits while simultaneously investing in future growth drivers like AI and international expansion, the company has reinforced its market leadership. With a resilient business model and a clear vision, Affle is well-positioned to continue its growth momentum in the upcoming quarters.