Affle 3I Ltd

Meeting Details

• Date: August 19, 2026; Time: not disclosed; One-on-One Call (virtual); Organizer: Avendus Investment Managers.

Participants

• Company participants not disclosed.

Purpose

• Purpose: Analyst/Investor meeting with Avendus Investment Managers.

Financial Performance

• Revenue from operations: INR 7.47 billion; up 20.4% YoY.
• Sequential growth over Q4 FY2026: 3.1%.
• EBITDA: INR 1.68 billion; YoY growth 20%.
• EBITDA margin: 22.4% in Q1 FY2027.
• PAT: INR 1.28 billion; YoY growth 21.7%.
• PAT margin: 16.6% of revenue; QoQ +60 bps.

Operating and Geography

• India & Emerging Markets revenue grew 20.2% YoY; 72.2% of revenue.
• Developed Markets revenue grew 20.7% YoY; 27.8% of revenue.
• Five case studies featured in earnings presentation.
• AdColony acquisition enhances reach to 500 million devices in Developed Markets.
• 100,000 mobile apps targeted for activation via AdColony assets.
• Launch of Niko and OpticksAI; enhanced platform stack.

Cash Flow and Balance Sheet

• OCF to PAT ratio in FY2026: 110%.
• Q2/Q3 FY2027: OCF-to-PAT expected to normalize toward 80–85%.
• No material changes in collection risk.
• Balance sheet remains strong with disciplined capital allocation.
• Bobble asset: impairment not recognized; insolvency proceedings ongoing.

Capex, Acquisitions and IP

• AdColony integration adds SDK assets; 100k app publishers targeting in Developed Markets.
• 500 million connected devices targeted in Developed Markets this year.
• Larger M&A process underway; closing anticipated by early 2027; accretive to bottom line.
• 10x growth plan reiterated; ~20% organic growth anchor; acquisitions to accelerate.

Q&A Highlights

• Q: 95% of revenues grew 25%+ YoY; RMG/FinTech headwinds noted.
• A: Adjusted basis confirms 95% of revenues >25% YoY; momentum intact.
• Q: AdColony live integrations; progress toward 100k apps.
• A: 100k app publishers activated; 500m devices; organic unlock via AdColony.
• Q: Developed Markets growth vs US focus; 20%+ growth targeted.
• A: Developed Markets to grow 20%+; US is a major focus with strong verticals.
• Q: SDK penetration in Developed Markets; CPCU economics favorable.
• A: Developed Markets show higher CPCU volume; margins to improve with scale.
• Q: Bobble impairment and bankruptcy update; ongoing inspections.
• A: Impairment not recognized; insolvency proceedings; decision after appeals.
• Q: 10x growth timeline; next 5 years; acquisitions to accelerate.
• A: 10x growth targeted in about five years; acquisitions to accelerate.

Issue Overview

• Type of issue: Preferential Issue of equity shares.
• Issue size: INR 749.02 crore; net proceeds initially INR 738.00 crore.
• Revised net proceeds: INR 737.43 crore as of 30 June 2026.
• OFS: Not applicable.
• Main objectives: tech development/expansion; inorganic growth; debt repayment; general corporate purposes.
• Shareholder approval obtained for object alterations.
• Revision due to higher issue-related expenditure (IRE) of ₹0.60 crore.

Utilisation of Proceeds

• Utilisation aligned with disclosures; changes approved by shareholders.
• No material deviation beyond shareholder-approved reallocation.
• Reallocation: INR 297.42 crore moved from Obj 1 to Obj 2.
• Obj 1: fully utilised (37.58 crore).
• Obj 2: not yet utilised.
• Obj 3: fully utilised (75.00 crore).
• Obj 4: partially utilised; 125.74 of 177.43 crore used; 51.69 crore unutilised.
• End-quarter unutilised: ₹499.11 crore.
• Unutilised funds held in fixed deposits, current accounts, and mutual funds.
• Progress: all objects on schedule; no delays.

Governance and Compliance

• Shareholder resolution dated 10 June 2026 approved object changes.
• All approvals for object changes evidenced by shareholder resolution.
• No material adverse events reported; no pending regulatory actions noted.

GCP

• GCP total: ₹125.74 crore.
• Working capital for foreign subsidiaries: ₹99.76 crore.
• Loan repayment: ₹25.98 crore.
• Approval via management undertaking dated 05 Aug 2026 and shareholder notice.
• Utilisation in Q1 2026-27: ₹0.00; cumulative ₹0.00.

Regulatory compliance update

• Submitted audio of Q1 FY27 earnings call Aug 10, 2026 under Reg 30 LODR; available on IR site.

Financials and strategic update

• Q1 FY2027 revenue INR 747.2 crore, up 20.4% YoY.
• EBITDA INR 167.6 crore, up 20.0% YoY; margin 22.4%.
• PAT INR 128.4 crore, up 21.7% YoY.
• CPCU revenue INR 745.5 crore, up 20.2% YoY; 12.4 crore converted users.
• Acquisition of strategic AdColony assets; size disclosed as not provided.
• AdColony assets strengthen AI-powered CPCU platform and cross-vertical expansion across mobile, CTV, and AICDs.
• Outlook: management confident in delivering medium-term guidance and sustained long-term growth.

Overview

• Q1 FY2027 consolidated revenue of INR 747.2 crore, up 20.4% YoY.
• EBITDA of INR 167.6 crore, up 20.0% YoY; EBITDA margin 22.4%.
• PAT INR 128.4 crore, up 21.7% YoY; PBT INR 157.8 crore, up 22.1%.

Key financials

• Revenue: INR 747.2 crore; YoY growth 20.4%; QoQ growth 3.1%.
• EBITDA: INR 167.6 crore; margin 22.4%.
• PAT margin 16.6%; PAT INR 128.4 crore.

Strategic developments

• Acquired strategic AdColony assets in Q1 FY2027.
• Strengthened AI-powered Consumer Platform stack for conversions across mobile, CTV and AICDs.
• CPCU revenue INR 745.5 crore; 20.2% YoY; 12.4 crore converted users in Q1.

Outlook and guidance

• Management remains confident in delivering medium-term guidance.
• Vision of 10x growth remains intact; geographic expansion continues.

Business Overview

• Global AI-led digital advertising platform using CPCU across connected devices.
• Affle Consumer Platform enables ROI-driven consumer journeys for brands.
• CPCU revenue share: 99.8% of Q1 FY2027 revenue.
• Geographic mix: India & Emerging Markets 72.9%, Developed Markets 27.1% (FY26).

Operational Highlights

• Q1 FY2027 revenue from contracts with customers: INR 7,472 million, +20.4% YoY.
• EBITDA INR 1,676 million; margin 22.4%.
• PAT INR 1,284 million; PAT margin 16.6%.
• Key client case studies: Domino's Pizza, Traveloka, Localiza, TransNusa, Flink.
• German retailer expansion: Flink expanding to the Netherlands.

Financial Performance

• Revenue from contracts: INR 7,472 million, +20.4% YoY.
• Depreciation & amortisation: INR 342 million; +32.2% YoY.
• Finance costs: INR 7 million; down 63.2% YoY.
• Other income: INR 250 million; +45.8% YoY.
• Profit before tax: INR 1,578 million; +22.1% YoY.
• Tax: INR 293 million; ETR 18.6%.
• Net profit after tax: INR 1,284 million; PAT margin 16.6%.
• QoQ: Revenue +3.1%; EBITDA +4.0% for Q4 FY2026.
• ETR 18.6% vs 18.3% prior year.
• CPCU revenue concentration 99.8% of contracts.

Capital & Liquidity

• No debt issuances or equity actions disclosed.

Strategic Priorities & Outlook

• Strategy emphasizes CPCU-driven growth across high-growth categories and markets.
• AI-led optimization and global expansion supported by partnerships and cross-border scale.
• Flink expansion from Germany to the Netherlands demonstrates cross-border momentum.

Standalone results

• Standalone revenue from operations: INR 2,396.05 mn; total income: INR 2,591.76 mn.
• PBT: INR 548.27 mn; tax: INR 139.89 mn; PAT: INR 408.38 mn.
• EPS (basic/diluted): INR 2.90 / 2.87.

Consolidated results & segment

• Consolidated results note a single primary segment: consumer platform.
• Group operates in India and other countries; no separate reportable segment.

Key corporate actions & balance sheet items

• Bobble held-for-sale carrying value: INR 1,358.28 mn; 24.07% stake.
• AdColony asset purchase: USD 4.70 mn; INR 444.10 mn; conditions precedents pending.
• QIP utilised INR 5,653.04 mn; balance net proceeds invested in fixed deposits.
• Convertible warrants: 7.4 mn warrants at INR 1,487; 25% upfront; 75% on conversion.
• Warrant proceeds: INR 2,750.95 mn upfront from Affle Holdings; balance on conversion.
• June 12, 2026: in-principle approvals for allotment of warrants (7.4 mn).