Multibagger stock: In a fluctuating market, AI stock Affle 3i has performed exceptionally well. It has made its investors rich by delivering a 700% return in six years.

Multibagger stocks: Multibagger stocks are those that have the potential to multiply your investment. However, identifying them is challenging. Multibagger stocks are often small companies that don't receive much market attention, so investors often remain unaware of them. Today, we're going to tell you about one such multibagger stock that has made its investors wealthy by delivering substantial returns. Here, we're talking about the AI ​​stock Affle 3i.

Affle 3i shares jumped more than 4% on Friday amid a sharp market decline. The stock has been under investor scrutiny following its strong performance in the third quarter of fiscal year 2026. The 11th consecutive quarterly increase in EBITDA and the seventh consecutive quarterly increase in EBITDA margin in Q3 also impacted its stock.

Company earnings in the December quarter

Announcing its quarterly results in February, Affle 3i reported revenue of ₹718 crore for the October-December quarter, a 19.2% increase from the same quarter last year and a 10.9% increase from the previous quarter. EBITDA during this period was ₹163 crore, a 24.1% increase from the previous year and an 11.6% increase from the September quarter.

The company's profit after tax (PAT) reached ₹119 crore in the third quarter, representing a 19.1% year-on-year improvement. According to exchange filings, CPCU's revenue stood at ₹714 crore, representing a 19.6% year-on-year increase and a 12.9% quarter-on-quarter increase.

Challenges facing the company

Despite the strong quarterly results, the company faces several challenges. The company stated that real-money gaming regulations in India negatively impacted its revenue performance. Furthermore, increased inventory and data costs also pressured gross margins. According to the filing, the company also stated that its operating cash flow to profit after tax ratio was temporarily impacted by an increase in collection days from agencies, which impacted short-term cash conversion. The company also faces risks from geopolitical uncertainties.

Affle stated that it is actively investing in data capabilities and advertising inventory to drive growth in international markets. While these investments are expected to enhance its long-term growth potential, they may impact short-term profitability and margins.