Yaap Digital's profit nearly doubled. The cash didn't.
FY26 EBITDA surged 89% to ₹31.74 cr, but the company burned cash as it bought Gozoop and stretched client credit.
What's new
- FY26 revenue hit ₹183.73 cr (+22.2% YoY), with EBITDA and PAT nearly doubling.
- Yaap closed the Gozoop acquisition at 8x EBITDA, adding 100+ clients and the Hawk platform.
- Operating cash flow turned negative from extended client credit; the target is 60-70% EBITDA-to-cash conversion in FY27.
Why this matters
Profit growth is strong, but it's not converting to cash. Buying clients on credit while the cash conversion ratio lags is a classic overtrading risk. The next test is whether the Gozoop integration lifts margins enough to cover the working-capital drain.
What we're watching
- Whether the 60-70% EBITDA-to-cash conversion target for FY27 materializes.
- How the Gozoop integration performs against the 25-30% revenue CAGR guidance.
- The path toward 2% market share in India's ₹2,00,000 cr digital ad market.
The full read
Yaap Digital's FY26 profit story is a tale of two metrics. Revenue of ₹183.73 crore grew 22.2%, but EBITDA of ₹31.74 crore surged 89.1% and PAT of ₹22 crore grew 97.9%. The profit growth is real. The catch is cash. Operating cash flow is negative, a result of extended client credit terms. The company is only targeting 60-70% EBITDA-to-cash conversion for next year. It also just closed the Gozoop acquisition at 8x EBITDA, adding 100+ clients and the Hawk platform. Management is guiding for 25-30% revenue CAGR to capture 2% of India's ₹2,00,000 crore digital ad market in three years. The growth is credible. The working-capital risk is not.
Questions answered
- What drove the near-doubling in EBITDA and PAT?
- Revenue grew 22.2% to ₹183.73 crore, but EBITDA grew much faster at 89.1% to ₹31.74 crore and PAT grew 97.9% to ₹22 crore. This indicates faster profit growth relative to the topline.
- What did the Gozoop acquisition cost, and what did it add?
- Yaap paid 8x EBITDA for Gozoop. The deal added over 100 clients to its roster and the Hawk online reputation management platform.
- Why is operating cash flow negative despite strong profit growth?
- The company attributed it to extended credit terms offered to clients. It is targeting a 60-70% conversion of EBITDA into cash flow in FY27.
- What is Yaap's market-share ambition?
- Management is targeting 2% of India's ₹2,00,000 crore digital advertising market within three years, implying a 25-30% revenue CAGR.
An independent reading of the company's own disclosure — the primary filing above is the final word.