Affle's margin expands as revenue growth outpaces expenses
Consolidated net profit rose +17.45% YoY, but other income accounted for 12.57% of pre-tax profit.
Filed 30 Oct 2026, 18:20 IST · after market close · Affle 3i Ltd (AFFLE)
Key takeaways
- Revenue grew +21.16% YoY while expenses rose +20.28%, lifting operating margin by 0.57 percentage points to 23.16%.
- Net profit rose +17.45% YoY to Rs 129.79 cr, while other income contributed 12.57% of pre-tax profit and the tax rate increased 0.26 percentage points.
- Operating margin recovered from 22.25% in Q4FY26 to 23.16%, placing Affle 3i 3.66 percentage points above the 19.5% median for 37 reported IT peers.
Price around the results
Revenue growth outpaced cost growth
Affle 3i's consolidated revenue growth of +21.16% YoY was slightly ahead of expense growth of +20.28%, supporting a 24.18% increase in operating profit. This lifted operating margin by 0.57 percentage points to 23.16%. The quarter marked a recovery from the 22.25% margin recorded in Q4FY26.
Margin now sits above the IT peer median
Operating margin improved across the first three quarters of the trend, from 22.24% in Q4FY25 to 22.73% in Q3FY26, before falling to 22.25% in Q4FY26 and recovering to 23.16% now. Affle 3i's margin was 3.66 percentage points above the 19.5% median among 37 Information Technology peers that had reported the quarter. This makes the current margin the strongest in the displayed five-quarter trend.
Lower interest helped, but other income remains material
Profit before tax grew +17.83% YoY, supported by a 29.91% fall in interest expense. Depreciation rose +29.23% and tax increased +19.54%, while the tax rate edged up 0.26 percentage points, so the net-profit growth of +17.45% was not flattered by a lower tax rate. Other income contributed 12.57% of pre-tax profit, making reported earnings quality an important consideration.
Management highlighted Orange Health Labs and GenAI usage
Management said Orange Health Labs recorded a 53% increase in purchases and 39% revenue growth in Q2FY27 versus Q1FY27. It also said the company's R&D work remains focused on maintaining a strong patent portfolio.
No post-results move yet; prior reactions were mixed
The consolidated results were filed after market close, so there is no reported post-results stock reaction yet. Across the eight prior result reactions, the stock rose four times and fell four times, with a median absolute move of 3.08%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | YoY |
|---|---|---|
| Revenue | ₹784 cr | +21.16% |
| Other income | ₹20 cr | -9.97% |
| Expenses | ₹602 cr | +20.28% |
| Operating profit | ₹181 cr | +24.18% |
| Operating margin (%) | 23.16% | — |
| Interest | ₹1 cr | -29.91% |
| Depreciation | ₹41 cr | +29.23% |
| Profit before tax | ₹159 cr | +17.83% |
| Tax | ₹30 cr | +19.54% |
| Net profit | ₹130 cr | +17.45% |
| EPS (₹) | ₹9.23 | +17.13% |
Operating margin of 23.16% compares with a Information Technology sector median of 19.50% across 37 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Orange Health Labs recorded a 53% uplift in purchases and 39% revenue growth in Q2 FY27 versus Q1 FY27.
New initiatives
- Affle says its technology capabilities include R&D focused on maintaining a strong patent portfolio.
- Affle used GenAI-based keyword recommendations to reach relevant healthcare-app patients.
What to watch
- Whether operating margin holds above 23.16% after recovering from 22.25% in Q4FY26.
- Whether revenue growth remains ahead of expense growth after +21.16% and +20.28% YoY, respectively.
- Whether other income's contribution stays around the 12.57% share of pre-tax profit.