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📊 Affle Q1 FY26 Financial Performance: Resilient Growth with Focused Execution

Lesson 176/185 | Study Time: 10 Min

Course: Quarterly Result Updates & Analysis

📊 Affle Q1 FY26 Financial Performance: Resilient Growth with Focused Execution

CMP: ₹1946
Period: Q1 FY26 (April–June 2025)
Source: Affle Financial Results, Investor Presentation, Concall Highlights

🧠 Recent Insights & Strategic Highlights

✅ Management reiterated its vision to power 10x decadal growth through:

AI-led ad tech innovation (CPCU-driven)
Strong demand in emerging + developed markets
Industry focus on E-commerce, EdTech, FinTech, FMCG, Gaming

🧪 R&D, Data Privacy, and Fraud Prevention remain strategic pillars.

📈 Consolidated Financial Performance (Q1 FY26)

Metric	Q1 FY26	Q4 FY25	Q1 FY25	YoY (%)	QoQ (%)
Revenue (INR Mn)	6,207	6,023	5,195	🔼 19.5%	🔼 3.1%
EBITDA	1,397	1,340	1,045	🔼 33.7%	🔼 4.3%
EBITDA Margin (%)	22.5%	22.2%	20.1%
Net Profit (INR Mn)	1,055	1,031	866	🔼 21.8%	🔼 2.4%
PAT Margin (%)	16.5%	16.6%	15.9%

📌 EPS (Basic): ₹7.52 | Diluted: ₹7.50
📌 Tax Rate: 18.3%

🧮 Profit Margins Trend

Margin Type	Q1 FY26	Q4 FY25	Q1 FY25
Gross Margin	~39%	~39.5%	~38.4%
EBITDA Margin	22.5%	22.2%	20.1%
Net Profit	16.5%	16.6%	15.9%

🔁 Segment & Market Performance

🌍 Geographic Revenue Split – Q1 FY26:

India & Emerging Markets: 72.3% (YoY growth: 18.1%)
Developed Markets: 27.7% (YoY growth: 23.3%)

🧾 Business Model: 99.9% Revenue from CPCU (Cost Per Converted User)

📌 Conversions: 107 Mn (vs 90.8 Mn in Q1 FY25)
📌 Avg. CPCU Rate: Improved
📌 CPCU Revenue: ₹6,200 Mn (YoY 🔼 64%)

🔍 Profitability & Valuation Ratios

Metric	Value (Q1 FY26)
ROE (TTM)	~13.1% (Est.)
ROCE (TTM)	~15.2% (Est.)
EPS (TTM)	₹27.19
P/E (TTM)	~71.5x

🔎 Valuations are on the higher end—reflective of tech growth premium.

📦 Vertical Growth Focus (Categories Driving Revenue)

Category	Verticals Included
E (E-commerce)	Retail apps, marketplaces
F (FinTech, FMCG, FoodTech)	Payments, consumer goods, food delivery
G (Gaming, Govt, Groceries)	Skill gaming, delivery apps
H (Health, Hospitality)	HealthTech, travel, home services

Affle's verticalization strategy supports platform scalability & ROI.

📅 Future Outlook: FY26 & Beyond

🔎 Near-Term (Next 2 Quarters):

Growth expected in the range of 24–26% revenue and ~28–30% profit
Margins likely to remain steady in 16.5–17% range

🌱 Long-Term (FY26–FY30):

Strong tailwinds from:

Mobile advertising growth
First-party data advantage
Increasing spend by global D2C & B2C brands
New product innovation via AI & ML

⚠️ Risks:

High valuation multiples
Slower economic conditions in developed markets
Regulatory risks in digital advertising & data privacy

🧾 Summary: What Long-Term Investors Should Note

👍 Positives:

Consistent revenue & profit growth
Strong margin stability
CPCU model offers resilience and scalability
Expanding global footprint

⚠️ Cautions:

Valuations at premium (P/E > 70x)
Heavy dependence on mobile ad ecosystem
Global macroeconomic risks could dampen sentiment

📌 Investment Stance: 🟡 Cautiously Optimistic
📈 Good stock for long-term compounding, but ideal entry during corrections or consolidations.

📢 Disclosure

"This analysis is provided solely for informational purposes and does not constitute investment advice. Investors should perform their own due diligence before making investment decisions."

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Piyush Patel

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