Affle Q1 FY26 Profit Soars 21.84% YoY on Revenue Jump

Affle (India) reported its Q1 FY26 earnings on 26th July 2025, delivering a strong set of numbers that underscore its consistent growth trajectory in the ad-tech and digital marketing space. With a 21.84% year-on-year growth in Profit After Tax (PAT) and a 19.49% YoY increase in revenue, the company continues to demonstrate robust performance across both consolidated and standalone metrics.

Let’s dive deeper into the financial performance, revenue mix, profitability, and stock market behavior of Affle (India) for the first quarter of FY26.

Consolidated Q1 FY26 Financial Performance

Affle’s consolidated revenue for the quarter ended June 2025 stood at ₹620.74 crore, compared to ₹519.50 crore in Q1 FY25. The net profit rose sharply to ₹105.50 crore, reflecting efficient cost management and improved margins.

The profit before tax was ₹156.89 crore, marking a 21.04% increase year-on-year, suggesting that the company has maintained a healthy operational structure and benefited from top-line expansion.

Standalone Q1 FY26 Financial Performance

On a standalone basis, revenue surged by 21.95% year-on-year to ₹198.96 crore, up from ₹163.15 crore in the corresponding quarter of the previous fiscal. However, the PAT growth was modest at 5.44%, showing that most of the operational leverage is currently coming from its subsidiaries and global operations.

Q1 FY26 Highlights

• Affle’s consolidated revenue rose by ₹101.24 crore YoY (19.49%)

• PAT increased by ₹18.91 crore YoY (21.84%)

• Standalone revenue grew by ₹35.81 crore (21.95%)

• Standalone PAT saw a modest increase of ₹1.53 crore (5.44%)

The disparity between standalone and consolidated growth reflects the strength of Affle’s international subsidiaries, alliances, and acquisitions that continue to fuel its topline and bottom-line performance.

Affle (India) Share Price Performance

Market Movement on Results Day

On 28th July 2025, post the announcement of Q1 FY26 results, Affle (India) shares opened strong at ₹1,813.50 per share, signaling positive investor sentiment. However, initial gains were not sustained, and the stock slipped during intraday trading, closing at ₹1,782.80 per share.

This minor correction can be attributed to profit booking and overall market volatility rather than any fundamental weakness in the company’s performance.

Long-Term Shareholder Returns

Despite short-term fluctuations, Affle (India) has been a stellar long-term wealth creator:

These figures highlight the company’s strong business model, scalability, and adaptability in the fast-evolving digital advertising landscape. Investors who have stayed invested have seen nearly 10x returns over the long term.

Business Model and Growth Drivers

Affle (India) operates a consumer intelligence-driven mobile marketing platform. Its key offerings include targeted advertising, app engagement, and mobile marketing automation.

The company earns revenue through Cost Per Converted User (CPCU) models, ensuring that advertisers pay only when users complete desired actions, such as app installs or purchases.

Key Growth Catalysts

1. Increased digital ad spending globally and in India

2. Rising smartphone penetration and data consumption

3. AI-led targeting and customer engagement

4. Expansion into emerging markets across Southeast Asia, Africa, and Latin America

5. Strategic acquisitions that integrate technology and client bases

These drivers position Affle well to capitalize on the shift from traditional to digital advertising mediums.

Management Commentary

The management expressed optimism regarding long-term growth, especially in international markets and the enterprise customer segment. They also emphasized increased focus on AI-driven marketing, expansion of the CPCU model, and deeper localization in regional markets.

They noted that the quarter’s strong revenue growth was a result of successful execution across both organic and inorganic growth channels, and the company would continue to invest in innovation to enhance client value and ROI.

Analyst View and Market Sentiment

Market analysts remain positive on Affle (India), citing its high-margin business model, sticky client base, and platform scalability. However, some analysts have raised caution around valuation metrics, suggesting that future growth must be consistently strong to justify current P/E levels.

Still, considering the recurring revenue base, expanding geographic footprint, and technology-led services, Affle is expected to retain its growth momentum in FY26 and beyond.

Risks and Challenges

Though the outlook is positive, investors should remain aware of key risks:

• High valuation multiples that demand flawless execution

• Intense competition from global ad-tech giants

• Regulatory risks in data privacy and user consent laws

• Currency and geopolitical risks in overseas markets

Conclusion

Affle (India)’s Q1 FY26 results reaffirm its strong positioning in the digital advertising ecosystem. With a robust 21.84% YoY growth in consolidated PAT and 19.49% growth in revenue, the company continues its trajectory of consistent performance.

While short-term stock movements may reflect profit booking, the long-term fundamentals remain solid. Affle’s ability to integrate AI and data analytics into marketing campaigns offers a strategic moat, while its global expansion provides avenues for sustained growth.

For long-term investors, Affle continues to be a compelling growth story. However, new entrants must weigh valuation risks and market volatility before making investment decisions.

As always, thorough research and risk profiling are crucial before investing.

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