AvenuesAI Limited — Q4 FY25 earnings call

Call held 26 May 2025

Management summary

Infibeam Avenues reported a strong Q4 and full year FY25, achieving its financial guidance with significant growth across key metrics. The company is strategically investing in AI and data center infrastructure, expanding its RediffPay platform, and scaling international operations in the GCC region. A rights issue of up to INR700 crores has been approved to fuel these ambitious growth plans, positioning Infibeam as an AI-first fintech infrastructure provider.

Highlights

  • Consolidated gross revenue for FY25 stood at INR3,993 crores.

  • Net revenue for FY25 reached INR526 crores.

  • Profit after tax (PAT) for FY25 surged to INR210 crores, marking a 42% year-over-year growth.

  • Q4 FY25 gross revenue increased to INR1,160 crores from INR716 crores in Q4 FY24.

  • Q4 FY25 net revenue rose 28% to INR135 crores from INR105 crores in Q4 FY24.

  • Q4 FY25 PAT stood at INR50 crores, reflecting a 53% year-over-year increase.

  • Q4 FY25 EBITDA reached INR78 crores, up 25% from INR62 crores in Q4 FY24, with an EBITDA margin of 58% of net revenue.

  • Board approved a rights issue of up to INR700 crores to fund strategic initiatives including RediffPay rollout, AI/data center infrastructure, and international expansion.

Key financials

2 periods

Q4 FY25

  • Gross Revenue
    ₹1,160 Cr
    YoY +62%
  • Net Revenue
    ₹135 Cr
    YoY +28%
  • PAT
    ₹50 Cr
    YoY +53%
  • EBITDA
    ₹78 Cr
    YoY +25%
  • Net Take Rate
    10.6 bps
  • EBITDA Margin (of Net Revenue)
    58%

FY25

  • Gross Revenue
    ₹3,993 Cr
    YoY +27%
  • Net Revenue
    ₹526 Cr
    YoY +25%
  • PAT
    ₹210 Cr
    YoY +42%
  • EBITDA
    ₹312 Cr
    YoY +23%

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 $100 Mn Partially from rights issue and partially through accruals
    • Building AI capabilities and data center infrastructure $100 Mn
    We'll invest about $100 million in the next 3 years in building out such capabilities. And partially, it will come from rights and partially through accruals.
  • Liquidity Liquidity disclosed Company maintains a strong cash-rich balance sheet.
    We have maintained a strong cash-rich balance sheet with prudent capital management.

Guidance & targets

Revenue

  • International Revenue Contribution Revenue · next couple of years · Medium confidence 20% to 25%
    We anticipate international revenues to comprise about 20% to 25% of our top line over the next couple of years.

    — Vishal Mehta

  • RediffPay Monetization Start Revenue · end of next quarter · High confidence started monetizing
    The fair assumption to make it is that by end of next quarter, we would have started monetizing.

    — Vishal Mehta

  • Saudi Arabia Revenue Uplift Revenue · FY '26 · Medium confidence meaningful uplift
    Though the revenue from Saudi Arabia is only starting to show up in this quarter's numbers, e anticipate a meaningful uplift in FY '26 as large clients like VFS Global and Nissan and others can ramp up volumes.

    — Sunil Bhagat

Profitability

  • Infibeam Quantum Edge ROI Profitability · High confidence under 24 months
    With an expected ROI under 24 months, we already have demand visibility for upcoming locations.

    — Vishal Mehta

  • Saudi Arabia Investment Payback Profitability · Medium confidence 1 to 3 years
    We think the payback is we don't want to be super aggressive, but anywhere between 1 to 3 years.

    — Vishal Mehta

Capex

  • AI & Data Center Capex Capex · next 3 years · High confidence $100 million
    We'll invest about $100 million in the next 3 years in building out such capabilities.

    — Vishal Mehta

What to watch in Q1 FY26

RediffPay Monetization

next quarter
Current Not yet started
Target Started monetizing

Why it matters

Key milestone for a new strategic initiative and potential new revenue stream.

The fair assumption to make it is that by end of next quarter, we would have started monetizing.

Risks & concerns

  • Regulatory changes in UPI incentives/MDR

    medium

    Discussion about UPI incentives and MDR for large merchants is with the PMO, creating uncertainty.

    So frankly, since I chair also the Payments Council of India, we're well aware that it has gone up to the Prime Minister's Office to do it for this particular decision. But right now until it happens, we cannot comment on it.

    Management acknowledged

  • GeM Arbitration Outcome

    medium

    Arbitration with GeM regarding licensing fees is ongoing, with an update expected next quarter.

    So that part, we will have hopefully something to share in the next quarter or so.

    Management acknowledged

Q&A highlights

5 direct
AI/Phronetic.AI Pricing Model & Monetization Direct
So the model there is a business -- there is an enterprise model and a consumer model. Developer it's a developer platform. So developers can develop their own agent and then they can deploy the agent for their own use cases or somebody else's use cases.

Clarifies the business model and monetization strategy for the new AI initiatives.

Asked by Deepesh Sancheti

Rights Issue Rationale & Dilution Direct
See, we think that building AI capability positions Infibeam in a very different set up. You're right, we do have cash position. But we believe that if you want to be meaningful and relevant for the future as well as build out Al first fintech infrastructure, something very few people are getting in into and we have seen early success in that.

Addresses shareholder concerns about capital allocation and potential dilution for strategic investments.

Asked by Deepesh Sancheti

AI Strategy and Business Structure Direct
Al is actually a horizontal layer. It is not specific layer for a particular so you can think of any we can see a world where even a single agent can be a $1 billion agent... And so we don't think that AI is as much of a vertical because most of the Al models, general Al models become more and more smarter and better, so the vertical AI kind of vanishes.

Provides insight into management's fundamental view of AI's role and its integration into their business model.

Asked by Deepesh Sancheti

Rediff Business Model and Monetization Direct
So RediffPay will onboard merchants through our TPAP license through NPCI to get their UPI being mapped. But that is the first part. When every transaction the consumer does using that. So if they're paying through mapping it through their RuPay card or CC on UPI or credit on UPI, there is interchange and there's money that is coming in from the other side, right?

Details the strategy and revenue potential of the Rediff acquisition and RediffPay platform.

Asked by Grishma Shah

UPI Incentives and MDR Impact Partial
So frankly, since I chair also the Payments Council of India, we're well aware that it has gone up to the Prime Minister's Office to do it for this particular decision. But right now until it happens, we cannot comment on it.

Highlights a significant regulatory uncertainty in the payments sector that could impact future revenue.

Asked by Grishma Shah

Return on Equity (ROE) Direct
Tushar, the way to look into it is, I think goodwill is artificially depressing our ROE, so there's a big line item called goodwill in our balance sheet. And that is the one which is depressing our ROE for the time being. So if you remove the goodwill, you'll perhaps see that ROE is better than what you are talking about, much better.

Addresses a key profitability metric and explains the impact of goodwill on reported ROE.

Asked by Tushar Sarda

3 min read 7 chapters

Detailed narrative

Strong Financial Performance in FY25

Infibeam Avenues reported robust financial growth for FY25, with consolidated gross revenue reaching INR3,993 crores and net revenue at INR526 crores. Profit after tax (PAT) surged to INR210 crores, marking a significant 42% year-over-year growth. The company also achieved a 23% YoY growth in EBITDA, which stood at INR312 crores for the full year.

Q4 FY25 Growth and Margin Expansion

The fourth quarter of FY25 demonstrated strong momentum, with gross revenue increasing to INR1,160 crores from INR716 crores in Q4 FY24. Net revenue grew 28% YoY to INR135 crores, and PAT saw a 53% YoY increase to INR50 crores. The net take rate improved to 10.6 basis points in Q4 FY25 from 9.2 basis points in Q4 FY24, contributing to a 58% EBITDA margin on net revenue.

Strategic Capital Infusion for Growth Initiatives

The Board approved a rights issue of up to INR700 crores to strengthen the capital base and fuel ambitious growth plans. This capital will primarily accelerate the rollout of RediffPay, expand Infibeam Quantum Edge AI and data center infrastructure, and support international expansion. Management plans to invest approximately $100 million in capex over the next three years for AI capabilities and data centers, funded partially by the rights issue and accruals.

Expansion in Payments and AI Infrastructure

Infibeam Avenues is evolving into a multi-vertical technology powerhouse, focusing on fintech, AI, and digital infrastructure. The company onboarded 110,000 new merchants in Q4, bringing the total to 1.2 million, and introduced CCAvenue SoundBox and TapPay for broader payment acceptance. The Rediff.com subsidiary received a TPAP license for RediffPay, marking its formal entry into the consumer-facing digital payment sector, with monetization expected to commence by the end of next quarter.

International Growth and Market Penetration

The company is scaling internationally, particularly in the GCC region, with Saudi Arabia operations now live with key clients like VFS Global and Nissan. International revenues are projected to contribute 20-25% of the top line within the next couple of years, with a payback period of 1-3 years for Saudi investments. In Oman, Infibeam's platform is already utilized by Bank Muscat, which holds 70% market share, and three other major banks.

Focus on Agentic AI and Quantum Edge

Infibeam is pioneering Agentic AI with Phronetic.AI, developing a global marketplace for AI agents, and launching Infibeam Quantum Edge, which involves deploying small-scale distributed data centers. This initiative aims to automate workflows, enhance predictability, and reduce operating costs, positioning the company as an AI-first fintech infrastructure provider. The AI is viewed as a horizontal layer, enabling various applications across the business.

Rediff Ecosystem Monetization Strategy

The Rediff acquisition, with its existing enterprise email business serving over 20,000 companies and 7 million daily active users, presents significant monetization opportunities. Beyond RediffPay, the company plans to leverage data localization requirements (DPDP guidelines) and ad sales, with current ad revenue already exceeding $1 million. The strategy involves cross-selling various services by integrating Rediff with UPI and other platforms, aiming to monetize the existing user base.

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