Are Affle 3i latest results good or bad?

Affle 3i's latest financial results for the quarter ending September 2025 showcase a solid performance, reflecting the company's ability to sustain growth in a competitive environment. The company reported consolidated net sales of ₹646.72 crores, which represents a year-on-year growth of 19.13% and a sequential increase of 4.19% from the previous quarter. This consistent revenue generation marks six consecutive quarters of sequential growth, highlighting Affle's operational resilience.
Net profit for the same period reached ₹110.51 crores, indicating a year-on-year increase of 20.13% and a sequential growth of 4.75%. The operating margin improved to 22.59%, a notable expansion of 171 basis points compared to the previous year, underscoring the company's operational efficiency and ability to manage costs effectively.

Affle's return on equity (ROE) stands at 19.46%, reflecting strong capital efficiency, while the return on capital employed (ROCE) is recorded at 23.61%. These metrics position the company favorably within the software consulting sector, demonstrating effective utilization of shareholder capital to generate profits.

The financial results also indicate a robust operational cash flow of ₹425.99 crores for FY25, representing a significant increase over the previous year. This strong cash generation capability, combined with a net cash position, provides Affle with substantial financial flexibility for future growth initiatives.

In terms of evaluation, the company experienced an adjustment in its evaluation, reflecting the market's consideration of its financial performance against prevailing valuation metrics. Overall, Affle 3i's results illustrate a company with strong fundamentals and operational momentum, though the elevated valuation levels warrant careful consideration moving forward.