Are Affle 3i Ltd latest results good or bad?

Affle 3i Ltd's latest financial results for Q3 FY26 reflect a notable performance in terms of revenue and profit growth. The company reported net sales of ₹717.47 crores, which represents a quarter-on-quarter growth of 10.94% and a year-on-year increase of 19.25%. This marks the highest quarterly revenue in its recent history, indicating strong demand for its mobile advertising technology services. The net profit for the same quarter reached ₹119.32 crores, showing a quarter-on-quarter growth of 7.97% and a year-on-year increase of 19.06%. The operating margin improved to 22.72%, the highest in seven quarters, demonstrating enhanced operational efficiency and effective cost management. Despite these positive operational trends, the company's return on equity (ROE) stands at 15.44%, which is lower than many of its peers in the IT sector. This suggests that while Affle is generating healthy profits, there is potential for improvement in shareholder value creation. The company has a strong balance sheet with negligible debt, reflecting financial prudence. However, the valuation metrics indicate that the stock is trading at a premium compared to industry averages, which may raise concerns among investors regarding future growth potential. Overall, Affle 3i Ltd's financial results highlight a robust operational performance, with significant revenue and profit growth, alongside a revision in its evaluation, suggesting a complex investment landscape influenced by both operational strengths and valuation considerations.