AvenuesAI Limited

Infibeam Avenues reported robust Q1 FY26 results, with gross revenue jumping 72% year-on-year to INR1,280 crores and net revenue growing 31% year-on-year to INR152 crores. The net take rate remained healthy at 10.4 bps, despite a slight sequential dip. Adjusted EBITDA increased 3% year-on-year to INR71 crores, achieving an impressive 47% margin, while adjusted PAT surged 70% year-on-year to INR85 crores, with a 56% margin, up from 43% in the prior year. Core payments TPV increased by over 15-20% year-on-year, clarifying that the overall 3% TPV decline was due to the GeM platform.

The company announced a pivotal strategic move involving the transfer of its e-commerce platform infrastructure business to Rediff.com for INR800 crores. This decision is driven by a vision for 'platform convergence,' aiming to integrate e-commerce with Rediff's existing enterprise ecosystem, including Rediffmail, RediffPay, and Rediff Fund. Infibeam Avenues will maintain over 80% equity control of Rediff.com, ensuring continued strategic alignment and operational oversight. This restructuring is expected to close within the next 3 to 9 months.

Rediff.com has demonstrated significant growth, securing multi-billion dollar contracts with large enterprises, particularly in the energy sector, and becoming a preferred choice for enterprise email platforms. The platform has developed a UPI-driven RediffPay framework, which has received in-principle approval from NPCI and is set to launch soon as a super app. Management projects Rediff.com to achieve an annualized run rate of INR300 crores post-integration, with an ambitious target of INR1,000 crores within the next 12 months, supported by its strong brand and scaled user base of over 100 million email users.

Infibeam is intensifying its focus on AI infrastructure through Phronetic.AI, which specializes in video LLM models, reasoning models, and a full-stack Agentic developer platform. The monetization model for Phronetic.AI will combine licensing per machine with usage-based fees, with current revenues at $1 million annually. The company plans to expand its data center capacity by 8 megawatts, adopting a client-led, ROI-driven approach for commissioning over 18-36 months, with an estimated capex of $1-3 million per site, funded partially by rights issue proceeds for IT infrastructure.

The international business showed strong year-on-year growth, particularly in the UAE. Infibeam is strategically investing in Saudi Arabia, building local infrastructure and ensuring data localization, positioning it as a significant future growth market. Oman is also a key focus, with four major banks already utilizing their platform. The company aims for international business to contribute 12-15% of payments net revenues by FY28, with a strategy to dominate the Middle East before expanding to other regions.

Despite strong Q1 margins, management indicated that short-term profitability would be impacted by strategic investments. The company plans significant spending on branding and marketing for RediffPay, Rediff platforms, and Rediff-TV over the next six months, prioritizing long-term value creation and customer acquisition over immediate profit optimization. Additionally, the reported PAT was artificially depressed by a notional mark-to-market gain/loss, which does not affect cash flow.