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    CCAVENUE

    CCAVENUE
    Financial Services·13 Nov 2025
    Management Summary

    Infibeam Avenues delivered its best-ever financial performance in Q2 FY26, achieving a nearly $1 billion annual revenue run rate ahead of schedule. The company reported significant growth in gross and net revenues, EBITDA, and PAT, driven by robust TPV and Rediff's performance. Strategic initiatives included expanding regulatory capabilities with PPI and IFSC approvals, and advancing AI-driven fintech solutions and consumer platforms.

    Highlights

    8

    • Achieved best-ever performance with record revenues and profits, the highest in company history.

    • Annual revenue run rate reached nearly $1 billion in Q2 2025, ahead of the March 2026 target.

    • Gross revenue stood at ₹1,965 crores, marking a 53% sequential and 93% year-on-year growth.

    • Net revenue was ₹153 crores, up 14% year-on-year, reflecting improved monetization.

    • Adjusted EBITDA reported at ₹94 crores, showing a 32% quarter-over-quarter increase.

    • Profit After Tax (PAT) reached ₹65 crores, an 18% year-on-year increase.

    • EBITDA margin was 61% and PAT margin was 42% of net revenue.

    • Received in-principle authorization from RBI for Prepaid Payment Instruments (PPIs) under CCAvenue Go.

    What Changed1

    vs Q3 FY26

    Guidance items2 → 7 (+5)

    Key financials

    Single quarter

    07 metrics
    1. 01Gross Revenue₹1,965 Cr+93%YoY
    2. 02Net Revenue₹153 Cr+14.0%YoY
    3. 03Adjusted EBITDA₹94 Cr+32%QoQ
    4. 04PAT₹65 Cr+18%YoY
    5. 05EBITDA Margin61%

    Guidance & targets

    6
    CategoryTargetPriority
    Revenue
    Annual Revenue Run Rate
    nearly $1 billion
    		High
    Profitability
    FY26 Close
    higher end of our guidance range
    		Medium
    Investment
    Rediff Investment
    $75 million to $100 million (₹500-700 crores)
    		High
    Product Launch
    RediffPay Consumer App Launch
    Q4 time frame
    		Medium
    Marketing Budget
    RediffPay Marketing Budget
    ₹40 crores
    		High
    Product Deployment
    POS Device Deployment (Test Phase)
    50,000 devices
    		High

    Final RBI approval for PPI (CCAVENUE Go)

    next quarter (January/February)
    CurrentIn-principle authorization received
    TargetFinal approval received, launch initiated

    Why it matters

    Enables the launch of new payment instruments like digital wallets and prepaid cards, expanding the company's offerings.

    So, around January, February, if our final approval comes in from the RBI, we will be ready to do. That is on the PPI.

    How to verify

    guidance_and_targets[metric='RediffPay Consumer App Launch']

    Risks & concerns

    3
    RiskSeverity

    Impact of bad data on AI-driven approaches

    AI-first approaches can yield bad output if fed with bad data, but management states it's a 'little solved problem' with guardrails. — Management acknowledged

    medium

    AI agents going rogue

    The theoretical risk of AI agents acting autonomously without control is addressed by in-built measurement and monitoring. — Management acknowledged

    medium

    Crowded consumer fintech market for RediffPay

    Management acknowledges the competitive landscape for RediffPay but believes their philosophy and unique approach will differentiate them. — Management acknowledged

    medium

    Q&A highlights

    7

    “So, basically, as far as the capital allocation is concerned for the rights issue, it is part of the objects of the rights issue. And in terms of objects, the primary, the main objects were investments in AI, which is where we are building out Phronetic.AI.”

    Clarifies the strategic use of funds from the rights issue, prioritizing AI investments and Rediff ecosystem development.

    asked by Prathna from Neeyovan

    2 min read7 chapters

    Detailed Narrative

    01

    Q2 FY26 Performance Highlights

    Infibeam Avenues reported its best-ever performance in Q2 FY26, achieving record revenues and profits. Gross revenue reached ₹1,965 crores, a 53% sequential and 93% year-on-year increase, driven by higher TPV and Rediff's contribution. Net revenue grew 14% YoY to ₹153 crores, with adjusted EBITDA at ₹94 crores (up 32% QoQ) and PAT at ₹65 crores (up 18% YoY). The company maintained strong profitability with an EBITDA margin of 61% and PAT margin of 42% of net revenue.

    02

    Strategic Transformation and AI Vision

    The company is transitioning into a hybrid B2B and B2C organization, anchored on AI-driven fintech infrastructure and AI-powered consumer/merchant platforms. This dual-engine model aims to power India's digital payments backbone and build next-generation AI-native experiences. The long-term vision is to create India's most trusted, regulated, intelligent, and globally scalable AI fintech infrastructure, led by CCAvenue and Phronetic.AI.

    03

    Regulatory Milestones and New Offerings

    Infibeam Avenues received in-principle authorization from RBI to issue Prepaid Payment Instruments (PPIs) under its new brand CCAvenue Go, enabling digital wallets, prepaid gift cards, and transit cards. This completes a full regulatory stack for acquiring, issuing, and billing. Additionally, in-principle approval from IFSCA for IA Fintech IFSC Private Limited will allow cross-border money transfer, escrow services, and merchant acquiring at GIFT-IFSC, presenting significant monetization opportunities.

    04

    Rediff Ecosystem Development

    Rediff.com is being reimagined as India's first AI-native consumer ecosystem, built on three pillars: RediffOne (unified communication, commerce, productivity suite with over 100 million registered users), RediffPay (upcoming consumer UPI app with NPCI in-principle approval), and RediffTV (AI-driven content streaming, currently in beta). The company plans to invest $75-100 million (₹500-700 crores) in Rediff over the next three years, with RediffPay expected to launch in Q4 FY26 with a marketing budget of ₹40 crores.

    05

    AI-driven Fintech Infrastructure

    Through Phronetic.AI, Infibeam is embedding intelligence across its digital and financial stack. Key highlights include the launch of PayCentral.AI, an agentic payment platform built on Google's protocol, enabling AI agents to transact autonomously. The Agent Operating System provides a next-generation orchestration layer, connecting various AI models and enterprise workflows, with a focus on on-premise deployment for data security and control.

    06

    Monetization Strategy and Take Rates

    The company's strategy focuses on absolute profit and cash flow generation, even as take rates adjusted from 11.2 bps to 8.2 bps due to a shift towards credit card volumes. Management emphasized optimizing for larger volumes and transactions to grow absolute profits. New monetization avenues include charging for AI agent activities (subscription or results-based) and leveraging Rediff's existing user base for low customer acquisition costs for RediffPay.

    07

    International Expansion

    International operations in UAE and Saudi Arabia are scaling rapidly, processing billions of dirhams annually, with Oman slated for launch next. The company expects international payments to contribute a double-digit percentage to net revenue within the next 12 to 18 months, indicating strong growth and diversification beyond domestic markets.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.