Brokerage firm Anand Rathi has maintained its 'Buy' rating and Rs 2,000 price target on Affle India, citing strong second-quarter revenue growth and the planned acquisition of Perion Network. Investors should monitor how the company manages the complex international merger and navigates shifting global advertising trends.
Anand Rathi has retained its 'Buy' rating on Affle India, setting a target price of Rs 2,000 per share. This outlook follows the company's solid second-quarter results for the 2027 fiscal year and its recent move to expand globally through an acquisition.
Affle India reported strong performance in the quarter ending September 2026. The company’s revenue grew by 21.2% compared to the same period last year, reaching Rs 7.84 billion. Its operating profit also saw a healthy rise of 24.2%, touching Rs 1.81 billion. The company’s core business model, which focuses on converting users for advertisers, remains the primary driver of this growth.
Alongside the financial results, the company announced a significant strategic move: the all-cash acquisition of Perion Network, an Israel-based advertising technology firm. The deal is valued at an equity price of approximately US$420 million. Perion holds a strong cash position of roughly US$228 million with no financial debt, which analysts view as a positive balance sheet factor for the deal. This acquisition is intended to help Affle expand its footprint in developed markets, particularly North America, and improve its capabilities in channels like Connected TV and retail media.
While the brokerage remains optimistic, investors should be aware of several factors that could influence future performance. The most immediate challenge is the integration of Perion Network. Merging two large, international technology companies involves significant operational complexity. Any delay or unexpected cost during this process could impact profitability in the short term.
Furthermore, the digital advertising sector is sensitive to macroeconomic conditions. If global advertising budgets are tightened due to economic uncertainty, it could pressure revenue growth. The company also faces ongoing challenges from changing privacy regulations globally. As governments and tech platforms introduce stricter data privacy frameworks, the way companies target ads and measure results continues to evolve. Affle’s ability to adapt its technology to these changing rules will be essential for maintaining its growth trajectory.
For now, the brokerage’s financial model for the target price does not yet account for the earnings from Perion Network. This means the actual contribution of the new business to the company's bottom line remains a key detail for investors to track. The next important updates for shareholders will be the progress of regulatory approvals for the acquisition and management's roadmap for integrating the two businesses.