Affle 3i Ltd. Share Price Sees 4% Jump Amid Weak Market Trends

On February 27, Affle 3i Ltd.'s share price surged by over 4% amidst a weak stock market trend. This growth follows the company's 11th consecutive quarter of sequential growth in topline and EBITDA, as well as its 7th consecutive quarter of EBITDA margin expansion.

Q3 FY26 Financial Performance

In Q3 FY26, Affle 3i Ltd. reported a revenue of ₹718 crore, marking a year-over-year increase of 19.2% and a quarterly rise of 10.9%. EBITDA stood at ₹163 crore, representing a 24.1% growth compared to the previous year and an 11.6% increase from the last quarter. The company's profit after tax (PAT) reached ₹119 crore, a 19.1% improvement year-on-year.

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Geographic Revenue Breakdown

Revenue from India and Global Emerging Markets accounted for 73.9% of the total and grew by 19.8% YoY and 11% QoQ. Developed Markets, representing 26.1% of the total revenue, showed growth of 17.8% YoY and 10.9% QoQ.

Key Financial Metrics

• EBITDA margin: 22.7%
• Operating cash flow: ₹254 crore over the nine-month period
• OCF-to-PAT ratio: 75.8%

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Challenges and Risks

Despite its growth trajectory, Affle 3i Ltd. pointed out various obstacles, including the full-quarter effect of real money gaming regulations in India, increased inventory and data costs, and a rise in collection days from agencies. The company also highlighted geopolitical events and wider economic uncertainties as significant risks that could affect advertising demand and revenue growth.

Investment and Growth Strategy

Affle 3i Ltd. is actively investing in data capabilities and advertising inventory to foster growth in international markets. While these investments are anticipated to enhance its long-term growth potential, they may impact short-term profitability and margins.

Share Price Performance

Affle 3i Ltd.'s share price opened at ₹1,330 apiece on the NSE, touching an intraday high of ₹1,385 and an intraday low of ₹1,321.10 per share. According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, the formation on the daily chart resembles a bullish engulfing, and if prices sustain above ₹1,380, there may be a short-term bounce towards ₹1,480 levels. The immediate support level is ₹1,300.