Affle 3I Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Affle 3I Ltd filed with BSE on 17 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Affle 3i reported Q1 FY2027 consolidated revenue of INR 7.47 billion, up 20.4% year-on-year, with EBITDA of INR 1.68 billion, up 20% year-on-year, and margins at 22.4%. Profit After Tax stood at INR 1.28 billion, growing 21.7% year-on-year, while management said over 95% of revenues grew more than 25% year-on-year excluding the impact of regulatory and macroeconomic headwinds on segments like RMG. Management also updated shareholders on progress toward a larger inorganic acquisition, saying due diligence was underway with third-party advisors and the deal was targeted to close by early 2027.
Numbers mentioned
Revenue: INR 7.47 billion (Q1 FY2027)
p. 2
“During the quarter, we delivered revenues of INR 7.47 billion, a growth of 20.4% y-o-y.”
Anuj Khanna Sohum, page 2 of the filed PDF · View the filing
EBITDA: INR 1.68 billion (Q1 FY2027)
p. 3
“EBITDA stood at INR 1.68 billion for the quarter and recorded a robust 20% y-o-y growth, with stable EBITDA margins at 22.4%.”
Anuj Khanna Sohum, page 3 of the filed PDF · View the filing
Profit After Tax: INR 1.28 billion (Q1 FY2027)
p. 3
“Profit After Tax for the quarter stood at INR 1.28 billion, growing by 21.7% y-o-y.”
Anuj Khanna Sohum, page 3 of the filed PDF · View the filing
India and Emerging Markets revenue growth: 20.2% y-o-y (Q1 FY2027)
p. 3
“India and global Emerging Markets continue to anchor our business growth, growing by 20.2% y-o-y and contributing 72.2% of our revenues in Q1 FY2027.”
Anuj Khanna Sohum, page 3 of the filed PDF · View the filing
Developed Markets revenue growth: 20.7% y-o-y (Q1 FY2027)
p. 3
“Developed Markets, which grew by 20.7% y-o-y and contributed 27.8% of our revenues.”
Anuj Khanna Sohum, page 3 of the filed PDF · View the filing
PAT margin: 16.6% (Q1 FY2027)
p. 6
“Our PAT margin improved to 16.6% of the total revenue, up from 16% in Q4 last year.”
Kapil Bhutani, page 6 of the filed PDF · View the filing
Inventory and Data costs: 63.2% of revenue from operations (Q1 FY2027)
p. 6
“our Inventory and Data costs stood at 63.2% of revenue from operations and remained broadly in line with our previous quarter.”
Kapil Bhutani, page 6 of the filed PDF · View the filing
OCF to PAT ratio: 110% (FY2026)
p. 6
“We had achieved 110% of operating cash flows (OCF) to PAT in FY2026.”
Kapil Bhutani, page 6 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Revenue growth — 20%+ · medium-term
stated firmly by Anuj Khanna Sohum
p. 7
“if the analysts are modeling us at 20% growth, they should derive confidence from the fact that 95% of business is actually growing at 25%+.”
Anuj Khanna Sohum, page 7 of the filed PDF · View the filing
Larger M&A close — close the transaction · early 2027
stated firmly by Anuj Khanna Sohum
p. 4
“We aim to close the larger M&A by early 2027 and the identified targets shall accelerate our expansion across Developed Markets by providing deeper and differentiated access to customers and verticals.”
Anuj Khanna Sohum, page 4 of the filed PDF · View the filing
App activations / connected devices reach — 100,000 mobile apps, 500 million connected devices · this year
stated firmly by Anuj Khanna Sohum
p. 3
“We aim to unlock significant competitive advantage by activating over 100,000 mobile apps to reach over 500 million connected devices in Developed Markets this year.”
Anuj Khanna Sohum, page 3 of the filed PDF · View the filing
Margin expansion — within this financial year
stated firmly by Anuj Khanna Sohum
p. 9
“I believe you will see that within this financial year, we will see better margin expansion, especially in Developed Markets.”
Anuj Khanna Sohum, page 9 of the filed PDF · View the filing
OCF to PAT ratio — 80%-85% · by Q3
stated firmly by Kapil Bhutani
p. 15
“You will see about 80%-85% OCF to PAT ratio by Q3.”
Kapil Bhutani, page 15 of the filed PDF · View the filing
Developed Markets growth — 20%+
stated firmly by Anuj Khanna Sohum
p. 16
“we see that we will be growing at least at 20%+ in Developed Markets consistently.”
Anuj Khanna Sohum, page 16 of the filed PDF · View the filing
Internal growth target — 25% growth
stated as an aspiration by Anuj Khanna Sohum
p. 16
“when we execute all our business plans, internally they are pegged at 25% growth and we are convinced and seeing the right kind of momentum on the ground to realistically peg ourselves internally on that.”
Anuj Khanna Sohum, page 16 of the filed PDF · View the filing
10x growth plan — 10x · five years
stated as an aspiration by Anuj Khanna Sohum
p. 19
“our past track record shows that we achieve 10x in five years and I would like to maintain that.”
Anuj Khanna Sohum, page 19 of the filed PDF · View the filing
Revenue milestone — $1 billion of revenue · next few years
stated as an aspiration by Anuj Khanna Sohum
p. 19
“I think the next milestone for us should be $1 billion of revenue, which should be around the corner in the next few years with organic growth as well as an acquisition.”
Anuj Khanna Sohum, page 19 of the filed PDF · View the filing
Combined entity growth after acquisition — at least 20% growth
stated conditionally by Anuj Khanna Sohum
p. 18
“I would only sign on the dotted line and invest if I am convinced that under the Affle leadership, the existing business as well as the new inorganic acquisition would continue to deliver combined at least 20% growth and will deliver a meaningful bottom-line performance, growing our Earnings Per Share, growing our cash flows meaningfully.”
Anuj Khanna Sohum, page 18 of the filed PDF · View the filing
Bobble asset impairment — next few quarters
stated conditionally by Anuj Khanna Sohum
p. 24
“We will take a decisive step in the next few quarters.”
Anuj Khanna Sohum, page 24 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said RMG and certain FinTech categories were impacted, but 95% of revenue still grew over 25% y-o-y on an adjusted basis, giving confidence in medium-term guidance.
Answered by Anuj Khanna Sohum
Asked by Karan Taurani: Which markets saw negative impact from regulatory/macro headwinds and can growth exceed 25% if normalized?
p. 7
“on an adjusted basis, 95% of our revenues have actually seen over 25% growth y-o-y. I believe that is defensible.”
Anuj Khanna Sohum, page 7 of the filed PDF · View the filing
Management attributed margin pressure to currency-adjusted CPCU rate benefits passed to advertisers and said margin expansion is expected this financial year, especially in Developed Markets.
Answered by Anuj Khanna Sohum
Asked by Karan Taurani: When will gross margins recover given recent compression?
p. 8
“You look at our Profit Before Tax, it has grown 22%, versus revenues growing at 20.4% and that actually shows that margins are expanding.”
Anuj Khanna Sohum, page 8 of the filed PDF · View the filing
Management said the process is organic business execution using existing teams and does not require large incremental investment.
Answered by Anuj Khanna Sohum
Asked by Vijit Jain: What is the status of AdColony app integrations and what does reaching the 100K app target require?
p. 10
“the apps that we already deal with, we will be able to activate them with the SDK integration in the normal course of business through this year.”
Anuj Khanna Sohum, page 10 of the filed PDF · View the filing
Management explained it was due to timing of cash collections from the prior year-end, not a deliberate strategy, and expects normalization by Q3.
Answered by Kapil Bhutani
Asked by Kavish Parekh: Why was OCF to EBITDA conversion weak this quarter?
p. 15
“It is just the flow of the funds. I had 110% OCF to PAT ratio in FY2026, that means I collected about INR 40 crore, INR 45 crore in operating cash flows in the month of March, ahead of the year-end.”
Kapil Bhutani, page 15 of the filed PDF · View the filing
Management said USD rates were stable this quarter versus prior quarters, limiting currency impact, and explained how CPCU rates are adjusted for cross-currency ROI commitments.
Answered by Kapil Bhutani
Asked by Kavish Parekh: What was the impact of currency movements on revenue and costs this quarter?
p. 15
“this quarter had a stable USD to various currencies, not only INR. So we didn't see any additional impact what we had in Q4 or Q3, when there was a spike in the USD to other currencies.”
Kapil Bhutani, page 15 of the filed PDF · View the filing
Management said the split between direct and agency billing is not a strategic focus since all business has direct technology integration with advertisers, and the mix could shift with market expansion or acquisitions.
Answered by Anuj Khanna Sohum
Asked by Samarth Patel: Why did direct customer revenue share jump to 79% from 74% in FY2026?
p. 21
“100% of our business has direct advertiser integration.”
Anuj Khanna Sohum, page 21 of the filed PDF · View the filing
Management said it believes Bobble remains a valuable asset, is challenging the insolvency proceedings in court, and will take a decisive step in coming quarters; the CFO added no permanent impairment is currently warranted pending the NCLT appeal.
Answered by Kapil Bhutani
Asked by Sanjay Ladha: Will Affle write off or provide for its INR 136 crore Bobble investment given Bobble's bankruptcy filing?
p. 24
“From the accounting perspective, it was discussed and since it is in early stage, there is no reliable basis to make a permanent impairment on the asset.”
Kapil Bhutani, page 24 of the filed PDF · View the filing
Risks flagged
Regulatory and macroeconomic headwinds impacted certain customer segments like RMG and FinTech
p. 8
“due to regulatory and macroeconomic headwinds, certain customer segments like, we already know RMG had an impact.”
Anuj Khanna Sohum, page 8 of the filed PDF · View the filing
Currency-adjusted CPCU rate benefits passed to advertisers impacted margins in the short term
p. 9
“on a currency-adjusted basis, we are actually passing some of the benefit to advertisers because of the currency adjustments that are happening. That has actually impacted the margins in the short term a little bit.”
Anuj Khanna Sohum, page 9 of the filed PDF · View the filing
Steep increase in U.S. currency rates in prior quarter affected inventory cost / take rate
p. 17
“We had a steep increase in the U.S. currency rates across last quarter and that affected the take rate or you can say the inventory cost, in the previous Quarter.”
Kapil Bhutani, page 17 of the filed PDF · View the filing
RMG category recovery still ongoing
p. 22
“In category G, RMG, the recovery phase is still on, on that front.”
Anuj Khanna Sohum, page 22 of the filed PDF · View the filing
Court-ordered inspection rights into Bobble's management have been denied
p. 24
“the inspection rights, even after the court orders and the SIAC orders, have been denied by the management.”
Anuj Khanna Sohum, page 24 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.