Mobavenue AI Q1 profit up 94% to Rs 11.7 crore
Mobavenue AI Tech sells performance advertising to banks, fintechs and consumer brands. Its June quarter numbers are a readable proxy for how hard those brands were spending on user acquisition.
- Mobavenue AI reported Q1 FY27 profit after tax of Rs 11.7 crore, up 94.3 percent from Rs 6 crore.
- Operating revenue rose 57 percent to Rs 72.8 crore, and 16.3 percent sequentially from Rs 62.6 crore.
- Supply and data costs, the largest expense line, rose 51.6 percent to Rs 44 crore from Rs 29 crore.
- Employee benefit expenses nearly doubled, up 92.1 percent to Rs 8.4 crore from Rs 4.4 crore.
Mobavenue AI Tech, a BSE-listed adtech platform, reported profit after tax of Rs 11.7 crore for Q1 FY27, up 94.3 percent from Rs 6 crore. Operating revenue was Rs 72.8 crore, up 57 percent year on year and 16.3 percent from Rs 62.6 crore in the preceding quarter. Total income was Rs 75 crore, including Rs 2.2 crore of other income. The Rs 12 crore in the Inc42 headline is the rounded version of Rs 11.7 crore.
One figure in that report does not reconcile. The article says total expenses rose 54.7 percent to Rs 59.5 crore against Rs 38.4 crore, and in a separate line says total expenses rose 54.7 percent to Rs 51.5 crore. Rs 38.4 crore grown by 54.7 percent is Rs 59.4 crore, so Rs 59.5 crore is the figure consistent with the stated growth rate. Treat Rs 51.5 crore as an error in the source.
Where the money goes tells you what the business is. Supply and data costs were Rs 44 crore, up 51.6 percent from Rs 29 crore, and are the largest line by a distance. Employee benefit expenses were Rs 8.4 crore, up 92.1 percent from Rs 4.4 crore. Other expenses were Rs 5 crore, up 17.6 percent. This is a media buying and data business, not a software licence business. The cost base moves with the inventory it buys.
That is why the revenue line reads as a demand indicator. Mobavenue sells user acquisition, engagement and inventory monetisation to digital-first brands, with clients listed as HDFC Bank, ICICI Bank, boAt, Groww, Flipkart, PhonePe and IndiGo. Those are banks, fintechs and consumer brands buying installs and conversions. Revenue up 57 percent year on year and 16 percent sequentially says those budgets were still expanding through the June quarter.
The caution sits in the spread. Supply cost grew 51.6 percent while revenue grew 57 percent, so the gap widened, but only by six points. A performance business lives inside that gap. If brands push cost per acquisition down while inventory prices hold, it closes quickly. Shares closed 0.31 percent lower at Rs 307.75 on the BSE on Tuesday.
Zane’s analysis draws on original reporting by Inc42. Read the original report.