Stock of the Budget Day
Only for Educational Purpose, No Recommendation)
Affle (India) Limited—now often referred to as Affle 3i Limited—has shown consistent growth throughout the 2025-2026 period, primarily driven by its AI-powered “Consumer Platform” and its Cost Per Converted User (CPCU) business model.
Here is a breakdown of their recent financial performance as of early 2026.
Latest Quarterly Results (Q2 FY2026)
For the quarter ended September 30, 2025, Affle reported its highest-ever quarterly revenue and profit.
Metric | Q2 FY2026 (₹ Crore) | YoY Growth (%) |
Revenue from Operations | ₹646.7 | 19.1% |
EBITDA | ₹146.1 | 28.9% |
Profit After Tax (PAT) | ₹110.5 | 20.1% |
EBITDA Margin | 22.6% | +172 bps |
Annual Performance Summary (FY2025)
The full-year results for the period ending March 2025 set the stage for the current momentum.
- Total Revenue: ₹2,266.3 Crore (Up 23.0% YoY).
- Full-Year PAT: ₹381.9 Crore (Up 28.5% YoY).
- Margins: The PAT margin for FY2025 stood at approximately 16.85%.
- Balance Sheet Strength: The company remains almost debt-free with a Gross Debt/Equity ratio of roughly 0.05x.
Financial Health & Ratios
Affle’s financials are characterized by high-efficiency ratios compared to many of its peers in the internet software and services space.
- ROCE: ~16.8% (Return on Capital Employed)
- ROE: ~14.0% (Return on Equity)
- Earnings Growth: Average annual growth of ~24% over the last 5 years.
- Cash Flow: Positive free cash flow, though working capital requirements have increased alongside revenue scaling.
Future Outlook (2026 and Beyond)
Management has indicated a goal of sustaining 20%+ revenue growth in the medium term. Analysts currently have price targets ranging from ₹1,880 to ₹1,985, factoring in the expansion of digital ad spending in India, which is projected to grow at a CAGR of ~32% through 2025-2026.
Note: The company is scheduled to report its Q3 FY2026 results on January 31, 2026.
As of January 2026, the financial trajectory of Hitachi Energy (particularly its flagship listed entity, Hitachi Energy India Ltd) shows aggressive growth driven by the “Age of Electricity.”
The company is currently in a “super-cycle,” benefiting from massive grid upgrades for AI data centers and renewable energy integration.
📊 Key Performance Indicators (FY 2025-26)
Results based on the most recent quarterly reports (Q2 and early Q3 2025-26).
| Metric | Current Status (approx.) | Year-on-Year (YoY) Change |
| Revenue (Quarterly) | ₹1,915.15 Cr | +23.2% |
| Net Profit (PAT) | ₹264.36 Cr | +405.6% (4x increase) |
| Order Backlog | ₹29,412.6 Cr | Record High |
| Op. EBITDA Margin | 15.2% | Up from 8.1% |
| Debt Status | Near Debt-Free | Significant deleveraging |
📈 Financial Highlights & Drivers
1. The “Data Center & AI” Effect
A significant portion of the revenue growth in 2025 and 2026 has been attributed to the AI boom. Large-scale data centers require massive transformers and grid stability solutions, which are Hitachi Energy’s specialty.
Global Revenue Proxy: Globally, the Hitachi Group reported a 10% increase in total revenue in late 2025, with the Energy segment being a primary driver alongside their Lumada (digital) business.
2. High-Voltage Direct Current (HVDC) Dominance
The company secured massive project wins, such as the Bhadla-Fatehpur link, which significantly boosted the order book. These “mega-projects” provide revenue visibility for the next 3–5 years.
3. Margin Expansion
The most impressive part of the recent reports is the jump in profitability.
Execution Efficiency: Net Profit grew much faster than Revenue (400% vs 23%), indicating that the company is successfully executing higher-margin, technology-intensive orders rather than just high-volume commodity parts.
Service Growth: Service orders grew 35% YoY, which traditionally carry much higher margins than hardware sales.
4. Strategic Full Ownership
In late 2025, parent company Hitachi Ltd moved to acquire the remaining 19.9% stake in the energy business, signaling total commitment to the subsidiary and simplifying the corporate structure for better capital allocation.
