AI Stock Surges 9% After Strong Q4 Results And Record FY26 Revenue

Indian equity markets traded lower on Monday, with the benchmark Nifty 50 index declining 0.95 per cent to 23,943. Despite weakness in the broader market, stock-specific buying interest remained visible in select tech counters. In this segment, Affle remained in focus after the stock witnessed buying momentum during the session. Affle share price gained 9 per cent to close trade at 1650.70 as of 2.15 PM on Monday. Trading activity also surged sharply, with over 695 lakh shares traded compared to the 30-day average traded volume of 5.52 lakh shares.

Affle announced its Q4FY26 results on May 9, 2026, reporting another quarter of steady growth across revenue, profitability, and user conversions. The company closed FY26 with its highest-ever annual revenue, EBITDA, and PAT, while also marking its 13th consecutive quarter of QoQ growth, reflecting the consistency of its business model.

Q4FY26 Performance
Revenue from operations for Q4FY26 stood at ₹724.4 crore, registering a growth of 20.3% YoY from ₹602.3 crore in Q4FY25. On a sequential basis, revenue increased marginally by 1% from ₹717.5 crore in Q3FY26, indicating stable growth at a higher operating base. EBITDA for the quarter came in at ₹161.2 crore, up 20.3% YoY from ₹134 crore in the year-ago quarter. EBITDA margin remained stable at 22.3%, compared to 22.2% in Q4FY25, reflecting disciplined cost management despite continued expansion.
Profit before Tax rose 19.5% YoY to ₹148 crore from ₹123.9 crore in Q4FY25. The company reported a higher tax expense during the quarter, with total tax increasing to ₹28.5 crore from ₹20.8 crore a year ago. Despite the higher tax outgo, PAT grew 16% YoY to ₹119.5 crore compared to ₹103.1 crore in Q4FY25. PAT margin for the quarter stood at 16%.

CPCU Business Continues Strong Momentum
Affle’s CPCU (Cost Per Converted User) business continued to remain the key growth driver during the quarter. The company delivered 12 crore converted users in Q4FY26, taking the total converted users for FY26 to 45.6 crore. CPCU revenue for the quarter stood at ₹721.7 crore, up 20.1% YoY. The growth was supported by strong demand across both domestic and international markets, showing balanced expansion across geographies.

Market-Wise Performance
India and Emerging Markets contributed 71.6% of the company’s overall revenue mix in Q4FY26, while Developed Markets accounted for the remaining 28.4%. Revenue from India and Emerging Markets grew 21.2% YoY, while Developed Markets reported 18% YoY growth. The broad-based growth across regions highlights the company’s expanding global presence and diversified revenue base.

Full Year FY26 Performance
For the full year FY26, consolidated revenue from operations rose 19.5% to ₹2,709.3 crore from ₹2,266.3 crore in FY25. EBITDA for the year increased 26.3% to ₹610.1 crore compared to ₹483.2 crore in FY25. EBITDA margin expanded to 22.5% from 21.3% last year, indicating improving operational efficiency. PAT for FY26 stood at ₹454.9 crore, up 19.1% from ₹381.9 crore in FY25. The company also reported improvement in profitability metrics as PAT margin edged up to 16.3%.

Management Commentary
Anuj Khanna Sohum said “We concluded FY2026 on a strong note, achieving our highest annual Revenue run-rate, EBITDA, PAT and consumer conversions till date. Despite a volatile global environment, we delivered consistent growth throughout the year, marking the 13th consecutive period of quarter-on-quarter growth, reaffirming the strength of our AI-powered Consumer Platform Stack and unique ROI-linked CPCU business model. Our diversified verticalized approach across business domains and geographies further enabled us to sustain broad-based growth across India, Emerging and Developed Markets. 
With our eyes set on 10x decadal growth vision of our 3i journey, we extended AI-native capabilities across our organization to accelerate our transition towards an intelligence-led enterprise. During the year, we also launched OpticksAI and Niko, our in-house AI agentic capabilities to improve the efficiency and productivity of our organization. 
While the global environment remains challenging, the structural tailwinds are compelling, driven by rising digital ad spends, the shift towards ROI-linked advertising and the adoption of AI platforms redefining consumer journeys. Coupled with our disciplined execution, we remain well-positioned to harness these opportunities and deliver sustainable, profitable growth for all our stakeholders. “

About the Company
Incorporated in 1994, Affle is a global technology company with a proprietary consumer intelligence platform that transforms ads into recommendations, helping marketers effectively identify, engage, acquire, and drive transactions with their potential and existing users.

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Disclaimer: This article is for informational purposes only and not investment advice