Affle 3i Q1 FY27 Results (NSE: AFFLE)
Signal: Steady quarter
The read
The key inflection is consolidated EBITDA margin reaching 25.8% after Q4FY26's 22% OPM was flat YoY: EBITDA grew 22.8% versus revenue growth of 20.4%, while employee cost rose only 7.8%; however, gross margin compressed 228bps because data costs grew 24.9%, so the margin improvement depends on below-revenue employee-cost growth rather than input-cost relief.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹747.16 Cr | 20.4% | +3.1% |
| EBIT | ₹158.46 Cr | 20.9% | |
| Net profit | ₹128.44 Cr | 21.7% | |
| EPS | ₹9.13 | 21.4% | |
| EBIT margin | 25.8% |
P&L walk
Consolidated revenue increased to ₹7471.64 million (+20.4% YoY; +3.1% QoQ), but inventory and data costs rose 24.9% YoY and lifted cost intensity to 63.2% from 60.9%; EBITDA still grew 22.8% to ₹1926.7 million, EBIT grew 20.9% to ₹1584.6 million and PAT grew 21.7% to ₹1284.39 million, with clean earnings quality despite other income rising 45.8%.
Segments
The filing reports a single consumer platform segment with no separate segment results; the material divergence is basis-related, with consolidated revenue of ₹7471.64 million and PAT of ₹1284.39 million versus standalone revenue of ₹2396.05 million and PAT of ₹408.38 million.
Key positives
- Consolidated revenue reached ₹7471.64 million, up 20.4% YoY and 3.1% QoQ, maintaining growth near the recent 19%-20% range.
- EBITDA grew 22.8% YoY to ₹1926.7 million versus revenue growth of 20.4%, while employee benefits expense grew only 7.8% to ₹656.40 million.
- EBITDA margin improved to 25.8% from the Q4FY26 OPM of 22%, indicating a margin re-acceleration after the prior quarter's flat YoY margin.
- Finance costs declined 63.2% YoY to ₹6.72 million, and consolidated PAT grew 21.7% to ₹1284.39 million with clean earnings quality.
Key concerns
- Gross margin compressed 228bps YoY to 36.8% as inventory and data costs rose 24.9% and increased to 63.2% of revenue from 60.9%; the filing does not disclose the driver.
- Consolidated depreciation rose 32.3% YoY to ₹342.06 million, faster than revenue growth of 20.4%, with no asset-base disclosure to establish whether this reflects productive capex.
- Standalone PAT of ₹408.38 million grew 37.5% YoY, but other income of ₹195.71 million represented 35.7% of standalone PBT, making parent-only earnings less operationally clean than consolidated earnings.
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