Highest Upside

At the forefront of technology, set to enter its next growth phase

Route Mobile posted a mixed operating performance in Q1 – revenue missed expectations, while margin came ahead of estimates. Revenue declined 10.6%/4.8% QoQ/YoY, below our estimates.

Route Mobile posted a strong operating performance in Q2. Revenue grew 6.5% QoQ to Rs11.2bn, above our estimate, primarily led by international business, ILDO business’ expansion, and domestic volume growth (offset partially by lower realizations), combined with routing synergies.

Quarterly Update Q1FY26

Just Dial’s Q1FY26 revenue was up 6.2% YoY, while EBITDA margin was flattish YoY (-74bps QoQ) – despite flat headcount – due to higher other expenses.

Sustained broad-based growth across geographies: Affle reported 19% YoY revenue growth with robust traction across India (74% of mix; +20% YoY supported by early festive spending) and international markets (26% of mix; +16.8% YoY). The ban on real money gaming did impact the company this quarter (expected to extend into Q3) but was offset by better demand and early festive spending. Converted users rose 1.5% QoQ/ 15% YoY to 109 million while CPCU remained stable at 58, underscoring strong advertiser demand despite temporary real money gaming impact. Moreover,...

We view Affle 3i (Affle) as a play on the structural shift of ad spend towards digital in India and other emerging markets, where digital penetration is still low versus global benchmarks.

Quarterly Update Q2FY26

We interacted with Affle 3i’s (Affle’s) management to understand the business outlook and growth prospects of the company.

Reported revenues grew 19.5% y-o-y to Rs. 620.7 crore in line with our estimates of Rs. 622.1 crore, driven by strong momentum in CPCU revenues. CPCU revenues stood at Rs. 620 crore, up 19.9% y-o-y.

We maintain our BUY rating on the stock.

One97 Communication (Paytm)’s Q2FY26 revenue was marginally ahead of the Street’s estimate, while profitability significantly beat expectations.

*over or under performance to benchmark index PB Fintech Ltd (PBFL) owns online financial services platformPolicyBazaar. By collaborating with financial services companies, including insurance providers, the company aims to enrich its platform and deliver a seamless consumer experience...

One 97 Communications (Paytm) reported a strong operational performance with adj. net profit of INR2.1b (vs. our estimate of INR1.3b). However, its reported PAT stood at INR210m due to a one-time impairment of INR1.9b on its loan to JV First Games.

Seshaasai Technologies Ltd. (STL) is a technology driven multi-location solutions provider focused on offering payments solutions, and communication & fulfilment solutions catering primarily to the BFSI industry. STL's solutions are driven by its proprietary platforms, which allow the company to offer solutions at scale and on a recurring basis. Additionally, STL also offers Internet of Things (IoT) solutions to a wide...

Diverse business segments and strong relationships: Operates across three verticals namely Payment Solutions (63% of mix debit/credit/prepaid/transit cards, cheques, wearables, merchant QRs), Communication & Fulfilment Solutions (30% of mix - print and digital via RUBIC platform), and IoT Solutions (7% of mix - RFID/NFC tags, labels, and readers). Long-standing relationships with top banks, insurance companies, AMCs and fintechs, supporting high repeat business and visibility of revenues. Proprietary digital platforms driving stickiness: Owns in-house proprietary...

IPO Note

Company is a technology driven multi-location solutions provider focussed on offering payments solutions, and communications and fulfilment solutions catering primarily to the banking, financial services and insurance (BFSI) industry, with data security, and compliance at the core of company's solutions. Solutions, that company offer at scale and on a recurring basis driven by company's proprietary platforms, play a crucial role in enabling the operations and deliverables of the...