Affle 3i shares rally over 10% on strong Q2 numbers, $420 million Perion acquisition

Shares of Affle 3i Ltd. were trading over 10% higher on Monday, November 2, after the company reported a strong set of Q2 FY27 results, with growth in revenue and profitability, alongside an improvement in operating margins.

The company's consolidated revenue from operations rose 21.02% year-on-year to ₹783 crore in the September quarter, compared with ₹647 crore in the corresponding period last year. Revenue was up 5.53% quarter-on-quarter from ₹742 crore in Q1 FY27.

EBITDA increased 23.65% YoY to ₹181.03 crore, compared with ₹146.40 crore a year ago. On a sequential basis, EBITDA grew 12.81% from ₹160.47 crore in the June quarter.

EBITDA margin improved to 23.12% in Q2 FY27, against 22.63% in the year-ago quarter and 21.63% in Q1 FY27.

Profit after tax (PAT) rose 17.91% YoY to ₹129.7 crore from ₹110 crore in Q2 FY26. Sequentially, net profit increased 6.84% from ₹121.4 crore.

Affle reported continued growth across India and emerging markets (EMs), as well as developed markets. Revenue from India and EMs grew 20.8% YoY in Q2 FY27, compared with 20.2% growth in the previous quarter. Developed markets revenue increased 22.3% YoY, accelerating from 20.8% growth in Q1 FY27.

The company's cost per converted user (CPCU) conversions grew 18.3% YoY to 128.9 million, while the average CPCU rate increased 4.5% YoY to ₹61.

Affle announces acquisition of Perion Network

Separately, Affle announced the acquisition of Perion Network, an ad-tech company with a presence in North America, for $11.70 per share in an all-cash transaction. The deal implies an equity value of approximately $420 million.

As of September 26, Perion had no financial debt and held cash of approximately $228 million. Affle said the acquisition will be funded through committed bank financing and its cash resources.

The transaction is expected to close in early 2027. Management expects the acquisition to be earnings-per-share (EPS) accretive by the end of the first year after closing.