1. At a Glance
Affle 3i keeps serving AI-flavored ads while investors pay P/E 63 for a 23% growth story. Q1 FY26 revenue jumped 19% YoY to ₹621 Cr, PAT rose 22% to ₹106 Cr. Solid margins, global patents, acquisitions – but still priced like it’s the Google of Gurugram.
2. Introduction with Hook
Imagine if every ad stalking you online made money for someone other than Mark Zuckerberg. Enter Affle – the digital stalker with manners. It whispers ads at 3.4 billion devices worldwide and pockets the cash. Growth? Strong. Price tag? Stronger than your WiFi signal during IPL finals.
Key Stats:
- Q1 Revenue: ₹621 Cr (+19%)
- Q1 PAT: ₹106 Cr (+22%)
3. Business Model (WTF Do They Even Do?)
Affle is basically the “Cupid” for ads – matching brands to consumers via its AI-driven Consumer Intelligence Platform. It claims to kill digital ad fraud and maximize conversions. In simple terms:
- They show ads.
- You click ads.
- They print money.
4. Financials Overview
- TTM Revenue: ₹2,368 Cr
- TTM Net Profit: ₹401 Cr
- ROE: 14%
- ROCE: 16.8%
Margins? 22% OPM – juicier than a startup pitch deck.
5. Valuation
- Market Cap: ₹25,331 Cr
- P/E: 63.2 (priced like it’s already a monopoly)
- P/B: 8.6
- Dividend Yield: 0%
Fair Value Range: ₹1,300–₹1,500 (unless they actually become the Google of Bharat).
6. What’s Cooking – News, Triggers, Drama
- Multiple AI and ad-fraud detection patents granted in India and US.
- Acquired YouAppi and stake in Explurger, expanding global footprint.
- Insider trading violations flagged in 2024 – spicy but not scandalous.
- Promoter stake trickling down to 55% – red flag or strategic? You decide.
7. Balance Sheet
| (₹ Cr) | Mar 2025 |
|---|---|
| Total Assets | 3,622 |
| Equity + Reserves | 2,946 |
| Borrowings | 82 |
| Other Liabilities | 593 |
Debt is almost negligible, balance sheet as clean as their ad fraud filters claim to be.
8. Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | 260 | 262 | 426 |
| Investing | -186 | -572 | -114 |
| Financing | -59 | 783 | -92 |
Operating cash flows rising steadily; investing is heavy thanks to acquisitions.
9. Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 14% |
| ROA | 11% |
| OPM | 22% |
| P/B | 8.6 |
Sexy business, stressy valuation.
10. P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 1,434 | 1,843 | 2,266 |
| PAT | 245 | 297 | 382 |
Consistent double-digit growth. PAT CAGR of 42% over 5 years – not bad for a tech ad company.
11. Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E | ROE |
|---|---|---|---|---|
| L&T Tech | 11,074 | 1,265 | 35 | 22% |
| Inventurus | 2,664 | 486 | 56 | 33% |
| Netweb | 1,149 | 114 | 95 | 24% |
| Affle 3i | 2,368 | 401 | 63 | 14% |
Affle looks like the overpriced hipster in an IT crowd of value-hunting engineers.
12. Miscellaneous – Shareholding, Promoters
- Promoters: 55% (down from 60%)
- FIIs: 18.4% (rising)
- DIIs: 13.8%
- Public: 12.7%
Promoter stake sliding slowly while FIIs load up – drama incoming?
13. EduInvesting Verdict™
Affle 3i is the ad-tech darling that actually makes money, but the market treats it like it’s invented ads themselves. Great growth, cutting-edge IP, but P/E 63 makes it a “priced-for-perfection” play. Keep watching – like it watches you.
Written by EduInvesting Team | 26 July 2025
Tags: Affle 3i, Q1 FY26, AdTech, EduInvesting Premium
