AFFLE/SE/ECT/Q1/2026-27 August 17, 2026

Key Financial Figures & Performance

Consolidated Q1 FY2027 Performance (YoY):

  • Revenue from Operations: ₹7.47 billion, growth of 20.4%
  • EBITDA: ₹1.68 billion, growth of 20.0%
  • EBITDA Margin: 22.4% (improved from 22.3% in Q4 FY2026)
  • Profit Before Tax (PBT): ₹1.58 billion, growth of 22.1%
  • Profit After Tax (PAT): ₹1.28 billion, growth of 21.7%
  • PAT Margin: 16.6% (improved from 16.0% in Q4 FY2026)
  • Effective Tax Rate: 18.6% (stated on a full-year FY2026 basis)

Sequential Growth (QoQ):

  • Revenue grew 3.1% over Q4 FY2026.
  • EBITDA grew 4.0% sequentially.
  • PBT grew 6.6% sequentially.
  • PAT grew 7.5% sequentially.

Geographic Revenue Mix:

  • India & Emerging Markets: Contributed 72.2% of revenue, grew 20.2% YoY and 4% QoQ.
  • Developed Markets: Contributed 27.8% of revenue, grew 20.7% YoY and ~1% QoQ.

Operational Cost Breakdown:

  • Inventory and Data Costs: 63.2% of revenue, broadly in line with the previous quarter.
  • Employee Costs: Increased 7.8% YoY and 3.4% QoQ, primarily due to annual appraisals and bonuses in some geographies.
  • Other Expenses: 5.6% of revenue, increased marginally by ₹2.3 million QoQ due to business promotion activities in Developed Markets.

Cash Flow:

  • The company achieved a 110% Operating Cash Flow (OCF) to PAT ratio in FY2026.
  • OCF for Q1 FY2027 was weaker at ~41% conversion, attributed to the upfront collection of receivables in March 2026 (Q4 FY2026). Management expects OCF to PAT ratios to normalize to 80-85% by Q3 FY2027.
  • No material changes in collection risk were reported.

Strategic and Operational Highlights

Business Momentum: Q1 FY2027 was the 14th consecutive quarter of sequential top-line growth, with record quarterly revenue, EBITDA, PAT, and consumer conversions. Management noted that over 95% of revenues witnessed over 25% YoY growth when adjusted for negative impacts from regulatory and macroeconomic headwinds affecting certain customer segments like Real Money Gaming (RMG), FinTech, and others.

Vertical Performance: Category E (e.g., E-commerce) and Category F (e.g., FinTech) were cited as robust and performing well. Category G (RMG) is in a recovery phase, while Category H (Healthcare, Hospitality) is also performing well. The ranking in India/Emerging Markets was qualitatively provided as E, F, H, G.

Channel Mix: Direct customers contributed 79% of revenue in Q1 FY2027, a increase from 74% for the full FY2026. The company emphasized that 100% of its business has direct advertiser technology integration, regardless of the billing channel (direct or agency).

Technology and Innovation: The company highlighted enhancements to its AI-powered Consumer Platform Stack, including the launch of Niko and OpticksAI. Its IP portfolio consists of 300+ unique enforceable patent claims covering fraud intelligence, human vs. non-human data distillation, and precision targeting.

Acquisitions and M&A:

  • AdColony Assets: The strategic acquisition of these assets is intended to enhance the publisher ecosystem and audience intelligence capability. Management aims to activate over 100,000 mobile apps to reach over 500 million connected devices in Developed Markets within the year. The acquisition was described as a "windfall strategic gain," as the entire entity was valued at ~$400 million in 2020-21.
  • Larger M&A: The company is making "strong progress" on a larger inorganic acquisition and has entered the phase of due diligence by third-party advisors. The target is to close this larger M&A by early 2027. The identified targets are expected to accelerate expansion across Developed Markets. Management stated any acquisition would be bottom-line accretive and would not slow the company's growth trajectory, aiming for the combined entity to grow at least 20%.

10x Growth Plan: Management reaffirmed its ambition to achieve a 10x growth in revenue, targeting to reach this milestone in roughly half the time of a decade (i.e., ~5 years) through a combination of organic growth and strategic M&A. The next milestone is stated as $1 billion in revenue.

Investment in Bobble AI: In response to an analyst question, management addressed its ~₹136 crore investment in Bobble AI, which has filed for bankruptcy. Management believes the technology and user base (15-18 million active users) remain a valuable asset. Court and SIAC (Singapore International Arbitration Centre) orders have granted Affle inspection rights, which have been denied by Bobble's management. The company is challenging the insolvency proceedings and, with legal advice, will take a "decisive step in the next few quarters." No impairment has been booked as of Q1, as the matter is in early stages and there is no reliable basis for a permanent impairment; impairment will be tested after the NCLT appeal is decided.

Management Commentary and Guidance

Management expressed confidence in the demand environment for the upcoming festive quarter. The medium-term growth guidance was reaffirmed, with internal business plans pegged at 25%+ growth. The company is focused on deepening its verticalization strategy, strengthening direct advertiser integrations, and expanding audience intelligence capabilities across connected devices (mobile, CTV, other AICDs).

Forex Impact

The quarter saw stable USD to various currency rates, unlike previous quarters which had volatility. Only ~20% of the business (U.S. dollar-to-dollar) is not subject to cross-currency ROI adjustments for clients. The company calibrates Cost Per Converted User (CPCU) rates to the ROIs promised in local currencies.

Awards and Recognition

The company's platforms won 18 awards at the Connected TV Asia Symposium 2026, including Best CTV AdTech and Best CTV Technology Company of the Year. It also received awards at the e4m India Digital Marketing Awards 2026 and the Agency Reporter Programmatic Asia Awards 2026.

Participants

Management: Mr. Anuj Khanna Sohum (Chairperson, MD & CEO), Mr. Kapil Bhutani (Chief Financial & Operations Officer).

Analysts: Representatives from Elara Capital, Citigroup, Ashika Institutional Equities, 360 ONE Capital Market, DAM Capital, Equirus Securities, Shree Investments, and Bastion Research.