Affle 3i Ltd.13th Consecutive Growth Quarter, ₹11 Bn M&A War Chest

Affle 3i closed FY26 on a strong note, delivering its 13th consecutive quarter of sequential topline growth despite a challenging macro environment and geopolitical headwinds.

The company's AI-powered consumer platform demonstrated clear resilience — maintaining sequential EBITDA growth even without festive seasonality tailwinds in Q4. Management reaffirmed its medium-term revenue guidance of 20% CAGR and a 10x decadal growth vision, with EBITDA margins trending from 22% toward a 23-25% medium-term target. Gross margins have compressed over recent quarters as a deliberate investment into premium device models, CTV placements, and first-party data integrations — management expects approximately one more year of this investment phase, followed by recovery toward 37-38% gross margins.

The defining development was the board-approved preferential issuance of equity warrants worth ₹11 billion to promoter Affle Holdings at ₹1,487 per warrant, strengthening the balance sheet for M&A. Management guided that a meaningfully sized acquisition has a realistic chance of closing within calendar year 2026, with four targets in active due diligence. The CPCU business model's resilience in tough macro conditions remains its core competitive moat.