Affle 3i Limited (NSE: AFFLE)(formerly known as Affle (India) Limited) The global technology firm’s quarterly revenue surpassed the ₹700 crore threshold, supported by double-digit growth in its Cost Per Converted User (CPCU) segment. Operating margins expanded across major markets as the company integrated agentic AI capabilities into its mobile advertising platforms.
Company reported a consolidated revenue from operations of ₹717.5 crore for the quarter ended December 31, 2025, representing a 19.2% increase year-over-year. This performance marked a milestone for the company, delivering its highest-ever quarterly revenue, EBITDA, and consumer conversions. The results indicate a consistent execution across industry verticals and geographies despite a volatile global macroeconomic environment.
Key Development
The primary driver of the quarter’s growth was the company’s proprietary CPCU business model, which accounted for 99.5% of total revenue from contracts with customers. During the third quarter, the company delivered 12.0 crore converted users, bringing the nine-month total for FY2026 to 33.6 crore. This outcome-led model focuses on delivering measurable ROI for advertisers by optimizing targeting and personalizing user engagement through deep audience insights.
Product Highlights
The company is currently expanding its generative AI capabilities through several key initiatives:
• Niko: A self-service agentic AI engine launched on the iOS-focused Newton platform, designed to enable automated workflows and ROI-driven decisioning.
• OpticksAI: A tool used for creative optimization to deliver personalized, persona-led advertisements.
• ConvergeAI: An integrated platform that combines proprietary data and advanced algorithms to unify the consumer journey across multiple demand-side platforms (DSPs).
• Patent Portfolio: The company now holds 39 unique patents, with 16 granted and 23 pending, addressing areas such as digital ad fraud and predictive algorithms.
Corporate Rebranding
Affle (India) Limited has formally changed its corporate name to Affle 3i Limited, marking a strategic repositioning aligned with the company’s long-term growth framework. The rebranding is anchored in management’s “Affle 3i Vision,” which targets 10x growth over the next decade.
The “3i” nomenclature reflects the company’s stated focus on three artificial intelligence pillars:
- Authentic Intelligence
- Actionable Intelligence
- Augmented Intelligence.
According to the company, this framework is intended to advance its offerings beyond rule-based automation toward AI-driven agent-led solutions aimed at improving customer outcomes and operational productivity.
Alongside the parent entity, Affle has implemented a series of subsidiary-level branding and structural changes to align with the updated corporate identity.
- Spain-based Mediasmart Mobile S.L. has been renamed Affle Iberia S.L.
- Devego S.A. has been rebranded as Jampp HQ S.A.
- In Southeast Asia, Appnext Pte. Ltd. was amalgamated with Affle International Pte. Ltd., effective October 1, 2025.
The company has indicated that these changes are structural and branding-related in nature and do not alter the underlying business operations.
Financial Performance
Affle 3i demonstrated margin expansion alongside its top-line growth during the third quarter:
• Revenue: ₹717.5 crore, up 19.2% YoY.
• EBITDA: ₹163.0 crore, an increase of 24.1% YoY.
• EBITDA Margin: 22.7%, representing an 89-basis point expansion year-over-year.
• Profit After Tax (PAT): ₹119.3 crore, up 19.1% YoY, despite a decrease in other income.
• Nine-Month (9M) Context: For 9M FY2026, revenue stood at ₹1,984.9 crore (up 19.3% YoY), while EBITDA reached ₹448.9 crore (up 28.5% YoY).
Business Outlook & Strategy
Company intends to maintain a disciplined capital allocation strategy, supported by a strong balance sheet featuring ₹1,541.7 crore in cash and liquid investments as of December 31, 2025. Operational priorities include continued investment in technology, talent, and AI-powered agents to enhance productivity across the connected ecosystem.
Sector Diversification
Affle’s revenue mix continues to be diversified across multiple high-growth industry verticals, grouped internally under categories E, F, G and H, encompassing e-commerce, entertainment, edtech, fintech, FMCG, food-tech, gaming, government services, groceries, health-tech, hospitality and travel.
Growth during the period was geographically broad-based. India and other emerging markets contributed 73.9% of total revenue, while developed markets accounted for 26.1%.
The company operates in a competitive digital advertising and mobile marketing landscape and is positioning its differentiated offerings around specialised iOS-focused growth platforms, including Jampp, which has received external industry recognition as a leading growth platform.
Investment Thesis: (Bull vs. Bear)
Bull Thesis
- Robust Cash Position: ₹1,541.7 crore in liquid assets provides a significant buffer for acquisitions or R&D.
- High Barrier to Entry: A growing portfolio of 39 patents in ad-fraud detection and AI targeting protects its technological edge.
- Outcome-Based Dominance: 99.5% revenue reliance on the CPCU model aligns with the industry shift toward measurable ROI.
Bear Thesis
- Rising Operational Costs: Inventory and data costs rose 23.2% YoY in Q3, outstripping the 19.2% revenue growth rate.
- Other Income Volatility: Other income declined 16.2% in Q3 and 23.9% over the 9M period, impacting overall profit growth.
- Market Concentration: 73.9% of revenue is tied to India and Emerging Markets, leaving the company sensitive to regional economic shifts.