AvenuesAI Limited — Q1 FY26 earnings call

Call held 8 Aug 2025

Management summary

Infibeam Avenues Limited reported strong Q1 FY26 results, demonstrating significant year-on-year growth in both gross and net revenues, alongside healthy and expanding margins. A pivotal strategic decision involved the transfer of its e-commerce platform infrastructure business to Rediff.com for INR800 crores, aiming for platform convergence and unlocking Rediff's enterprise SaaS and media potential. The company provided optimistic full-year guidance, emphasizing its core focus on digital payments (CCAvenue) and AI (Phronetic.AI) as primary growth engines.

Highlights

  • Gross revenue jumped 72% YoY to INR1,280 crores.

  • Net revenue increased 31% YoY to INR152 crores.

  • Net take rate stood at 10.4 bps, a slight sequential dip from 10.6 bps.

  • Adjusted EBITDA rose 3% YoY to INR71 crores, with a 47% margin.

  • Adjusted PAT surged 70% YoY to INR85 crores, achieving a 56% margin (up from 43% YoY).

  • Strategic transfer of e-commerce platform infrastructure business to Rediff.com for INR800 crores.

  • FY26 guidance: Revenue INR5,250-5,500 crores, Net Revenue INR540-600 crores, EBITDA INR325-350 crores, PAT INR220-240 crores.

  • Rediff.com is expected to reach an annualized run rate of INR300 crores post-integration, targeting INR1,000 crores within 12 months.

Key financials

  1. Gross Revenue ₹1,280 Cr +72%YoY
  2. Net Revenue ₹152 Cr +31%YoY
  3. Adjusted EBITDA ₹71 Cr +3%YoY
  4. Adjusted PAT ₹85 Cr +70%YoY
  5. Net Take Rate 10.4 bps -1.9%QoQ
  6. EBITDA Margin 47%
  7. PAT Margin 56% +30.2%YoY
  8. Stand-alone Gross Revenue ₹1,198 Cr +76%YoY
  9. Stand-alone Net Revenue ₹102 Cr +13%YoY
  10. Stand-alone Adjusted PAT ₹59 Cr +81%YoY
  11. Stand-alone EBITDA Margin 36% -45%QoQ

What they filed

Q1 FY27: revenue up 109.4%, net profit up 46.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue1,017 1,070 1,161 1,280 1,965 +93%2,381 +123%2,490 +114%2,680 +109%
EBITDA78 78 75 71 90 +15%96 +23%91 +21%100 +41%
Net profit47 64 55 58 68 +45%80 +25%89 +62%85 +47%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

high confidence
  • Capex Capex disclosed Portion from rights issue for IT infrastructure; non-IT components from accruals
    • IT infrastructure for AI setup and 8 megawatts of data centers
    We will use some portion for the IT infrastructure within the AI setup. For the non-IT, we don't have any allocation from the rights issue perspective because non-IT we'll do it from accruals.
  • M&A e-commerce platform infrastructure business Divestment · Announced · Consideration ₹800 Cr

    Platform convergence and amplifying impact by pairing with Rediff's enterprise ecosystem.

    Infibeam retains more than 80% equity control of Rediff.com.

    Earlier today, Infibeam Avenues Board has approved a strategic transfer of the e-commerce platform infrastructure business to Rediff.com for INR800 crores.
  • M&A Rediff.com Fundraise · Pending regulatory · Consideration ₹400 Cr

    To raise capital for growth initiatives.

    Infibeam's additional 28% stake in Rediff is valued at INR400 crores, part of the consideration for the platform transfer.

    The entity has an opportunity to raise capital. There have been some inbound interest from time-to-time. The entity is evaluating multiple options of fundraise...

Guidance & targets

Revenue

  • Gross Revenue Revenue · FY26 · High confidence INR5,250 crores to INR5,500 crores
    For the full year FY '26, we provide the following guidance. We are projecting revenue of INR5,250 crores in the lower side and INR5,500 crores on the higher side.

    — Sunil Bhagat

  • Net Revenue Revenue · FY26 · High confidence INR540 crores to INR600 crores
    In case of net revenue, we are expecting in the range of INR540 crores to INR600 crores.

    — Sunil Bhagat

Profitability

  • EBITDA Profitability · FY26 · High confidence INR325 crores to INR350 crores
    EBITDA in the range of INR325 crores to INR350 crores

    — Sunil Bhagat

  • PAT Profitability · FY26 · High confidence INR220 crores to INR240 crores
    and PAT, we are expecting at INR220 crores to INR240 crores in FY '26.

    — Sunil Bhagat

Rediff.com Performance

  • Annualized Revenue Run Rate (post-integration) Rediff.com Performance · once we integrate the platforms · High confidence upwards of INR300 crores
    As of today, we'll be at a run rate of upwards of INR300 crores once we integrate the platforms.

    — Vishal Mehta

  • Annualized Revenue Run Rate Rediff.com Performance · Within the next 12 months · High confidence INR1,000 crores
    Within the next 12 months, we expect a run rate of INR1,000 crores.

    — Vishal Mehta

International Business

  • Contribution to payments net revenues International Business · by FY '28 · Medium confidence 12% to 15%
    Also, you've set a target of 12% to 15% international contribution to payments net revenues by FY '28.

    — Deepesh Sancheti

Data Center

  • ROI timeline Data Center · High confidence 18 months to 36 months
    a typical ROI in a data center will be anywhere between 18 months to 36 months for us.

    — Vishal Mehta

What to watch in Q2 FY26

Rediff.com E-commerce Platform Transfer & Capital Inflow

Within 3-9 months (next 1-2 quarters)
Current Board approved, transaction expected to close within 3-9 months.
Target Transaction closed, capital received.

Why it matters

This is a significant strategic restructuring and capital infusion event that will impact the company's structure and financials.

I think the transaction closes within the next 3 months to 9 months. Our expectation is that capital will come into our balance sheet within the next 3 months to 9 months.

Risks & concerns

  • Short-term profitability impact from strategic investments in Rediff

    medium

    Significant spending on branding and marketing for RediffPay, Rediff platforms, and Rediff-TV in the next 6 months will impact short-term profitability, as the company prioritizes long-term value creation.

    Analyst acknowledged

  • Artificial depression of PAT due to mark-to-market gain/loss

    low

    Q1 FY26 PAT was artificially depressed by mark-to-market gain/loss, which is notional and does not impact cash flow.

    Management acknowledged

  • Artificial depression of ROE due to goodwill

    low

    The company's ROE is artificially depressed by a goodwill component of INR1,600 crores on the books, resulting from past mergers.

    Analyst acknowledged

Q&A highlights

7 direct
Rediff.com Valuation Jump and Fundraise Direct
Basically, the first investment of Rediff that we made was in the second to the third quarter of last year... Within that time frame, there are 2 or 3 large opportunities that Rediff was able to work upon. The entity has an opportunity to raise capital.

Management explained the significant increase in Rediff's valuation due to new large enterprise contracts and RediffPay development, clarifying that Rediff is seeking external capital.

Asked by Rahul Jain

Data Center Expansion and Capex Strategy Partial
No, it may take us 18 months to 24 months. We'll not commission all of that. We will follow the client. When we have a client, we get much better ROIs.

Clarified a phased, client-led, ROI-driven approach to data center commissioning over 18-24 months, rather than an immediate full build-out of 8MW.

Asked by Mohit Jain

Phronetic AI Monetization Model Direct
How it translates into our revenue is that so far, we believe that there is a licensing component, licensing on each machine... Then the second component is based on number of tokens calls, complexity, so on and so forth.

Detailed the dual monetization strategy for Phronetic AI, combining machine licensing with usage-based fees, and mentioned current annual revenues of $1 million.

Asked by Deepesh Sancheti

International Business Growth and Localization Strategy Direct
UAE, we have grown fantastically year-on-year growth... Similarly, we have now grown into Saudi. Saudi required a lot of data localization and other things. We are investing, putting up the entire infra there, primarily within the Kingdom there.

Highlighted strong growth in UAE and strategic focus on Saudi Arabia with significant local infrastructure investment, positioning it as a key future international growth driver.

Asked by Deepesh Sancheti

Profitability and Margin Outlook Amidst Strategic Investments Direct
Our guidance includes the fact that we'd be spending for the next 6 months on promoting RediffPay and Rediff platforms and Rediff-TV and others. We'll be spending on branding and customer acquisition, which is where we believe that we're not optimizing on profit, we are optimizing on long term.

Explained that short-term profitability is being impacted by strategic investments in Rediff's branding and marketing, indicating a conscious trade-off for long-term growth.

Asked by Deepesh Sancheti

TPV Decline and UPI Strategy Direct
If you look at the impact of -- and the platform is primarily GeM in this. If you remove the impact and look at quarter-over-quarter, actually TPV for payments has increased by more than 15%, 20% year-over-year, '25 versus '26 Q1.

Clarified that the reported TPV decline was due to the GeM platform, while core payments TPV actually grew significantly, and explained their cautious approach to zero-MDR UPI transactions.

Asked by Satyam

Rediff-TV Breakeven Horizon and Ad Tech Integration Direct
On a variable cost basis, today, it's profitable. In other words, we think that unlike the traditional approach where you would need to build out quite a bit of capex that you mentioned and so on and so forth. I think this one is, again, a full stack.

Indicated that Rediff-TV is already profitable on a variable cost basis due to its AI-driven, full-stack approach, which minimizes traditional capex and human involvement.

Asked by Mohit Daga

Rediff.com Stand-alone Profitability and Monetization Direct
Last year, for the first time, it came in black. Historically, the burn is about 1 million... I think Rediff has significant brand and inherent value that it's scaled up, we just have to find more ways and mechanisms to monetize on that.

Confirmed Rediff.com achieved profitability last year and outlined the ongoing strategy to further monetize its scaled platform and strong brand value.

Asked by Kaushik Poddar

3 min read 6 chapters

Detailed narrative

Q1 FY26 Financial Performance

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.

Strategic Convergence and Rediff.com Restructuring

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's Growth Trajectory and Future Plans

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.

AI and Data Center Strategy

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.

International Expansion and Payment Strategy

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.

Profitability and Margin Outlook

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.

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