AvenuesAI Limited — Q4 FY26 earnings call

Call held 29 May 2026

Management summary

AvenuesAI reported a strong Q4 and FY26, driven by significant growth in transaction processing volumes and strategic AI integration. Revenue from operations for FY26 grew over 106% YoY to ₹8,116 crores, with PAT increasing by nearly 59% to ₹332 crores. The company is strategically evolving into an AI-first financial infrastructure, focusing on embedded finance and international expansion, though specific FY27 profitability guidance is deferred to the next quarter's call.

Highlights

  • FY26 Revenue from operations increased 106.88% YoY to ₹8,116 crores, demonstrating strong growth.

  • FY26 Consolidated PAT grew 58.85% YoY to ₹332 crores, reflecting improved profitability.

  • Q4 FY26 Revenue from operations saw robust growth of 115% YoY and 5% sequential growth, reaching ₹2,490 crores.

  • Q4 FY26 Adjusted PAT surged 90% YoY to ₹95 crores, indicating strong quarterly performance.

  • Successful strategic investments in Online PSB Loans and Ratnaafin to bolster embedded finance capabilities.

Concerns

  • E-commerce platform business segment was flat to slightly higher, with some degrowth noted, despite being a high-margin business.

  • Management did not provide specific capex guidance for FY27, citing internal guidelines and policies.

  • The 30% international revenue target set in February 2024 has not yet been met, with no clear timeline for achievement.

Key financials

2 periods

Q4 FY26

  • Revenue from Operations
    ₹2,490 Cr
    YoY +115% QoQ +5%
  • Net Revenue
    ₹149 Cr
    YoY +11%
  • Adjusted PAT
    ₹95 Cr
    YoY +90%

FY26

  • Revenue from Operations
    ₹8,116 Cr
    YoY +106.9%
  • Net Revenue (Consolidated)
    ₹603 Cr
    YoY +14.6%
  • Consolidated PAT
    ₹332 Cr
    YoY +58.9%

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
  • M&A Online PSB Loans Acquisition · Announced

    Potentially connects us to one of India's most important digital lending infrastructure backed by major financial institutions.

    The proposed strategic investment that we announced today in Online PSB Loans is important because it potentially connects us to one of India's most important digital lending infrastructure backed by major financial institutions.
  • M&A Ratnaafin Acquisition · Closed

    Strengthens our ability to participate in lending distribution, credit intelligence and financial product ecosystems without necessarily taking disproportionate balance sheet risk ourselves.

    We've taken up, up to 2.5% stake.

    Similarly, our investment thesis initiatives in NBFC companies starting with Ratnaafin further strengthens our ability to participate in lending distribution, credit intelligence and financial product ecosystems without necessarily taking disproportionate balance sheet risk ourselves. You may have heard earlier in the call, Ratnaafin is the first one that we've opened up, where we've taken up, up to 2.5%.

Guidance & targets

Profitability

  • FY27 Profitability Profitability · FY27 · Medium confidence similar to past years
    So I think that it's reasonable to assume that it will be similar to what we have seen in the past years FY '27 should be. But we'll give guidance in the first quarter call for the full year.

    — Vishal Mehta

  • FY27 Profitability Profitability · FY27 · High confidence no hockey stick
    I think, I mean, it's reasonable to assume that it will -- the profitability, we don't see a hockey stick in FY '27 in profitability.

    — Vishal Mehta

Margins

  • FY27 Consolidated Margins Margins · FY27 · Medium confidence similar numbers or maybe slightly higher
    But yes, we believe the margins should continue. I mean, in terms of consolidated basis, we should continue seeing similar numbers or maybe slightly higher, which will guide you at the end of first quarter.

    — Vishal Mehta

International Expansion

  • US Market Focus International Expansion · Going forward · High confidence important strategic focus area
    Going forward, United States represents an important strategic focus area for us as a country.

    — Vishal Mehta

What to watch in Q1 FY27

FY27 Profitability Guidance

Q1 FY27 earnings call
Current Similar to past years, no hockey stick growth
Target Specific numerical guidance for FY27 profitability

Why it matters

Management deferred specific FY27 profitability guidance to the next quarter, which is key for investor modeling.

But we'll give guidance in the first quarter call for the full year.

Risks & concerns

  • Operating risk, regulatory risk, and cyber security threats

    high

    Analyst raised concerns about operating risk, regulatory actions, and system hacking, which management acknowledged as constant concerns.

    Because, to me, apart from AI, the only other key issue in the company's operating risk. And if something goes wrong where you don't get a certain chance, especially not from the regulators or someone who's trying to hack our system. So I'm very keen to understand if you have any comments on these two observations.

    Analyst acknowledged

  • Risk of not adapting to AI evolution

    medium

    AI will fundamentally shape commerce payments and financial workflows; failure to adapt poses a risk.

    We believe AI will fundamentally shape commerce payments, all financial workflows, customer serving, service compliance, risk assessment, operations and practically even autonomous transaction execution.

    Management acknowledged

  • Security vulnerabilities and new frameworks

    medium

    Management stated that 'Mythos and a few other security vulnerability issues' are constant concerns, and new frameworks are emerging daily.

    my Mythos and a few other security vulnerability issues and so on and so forth, keeps us up all the time. We don't know too much about that because the new frameworks are coming up by the day.

    Management acknowledged

  • Slow enterprise adoption of AI

    medium

    Management noted that enterprise adoption of AI has been slow, impacting the timeline for their AI strategy.

    So the way we think about the opportunity is that Al deployment, and you'll read a lot of reports, what the mental model was about 1.5 years, 2 years ago is very different than what the reality is today. So enterprise adoption of AI has been slow.

    Management acknowledged

  • Macroeconomic risk in Middle East

    low

    The company shifted focus to the US for international expansion due to macroeconomic risks in the Middle East.

    This year, we will pick up U.S. because of the macroeconomic risk in Middle East.

    Management acknowledged

Q&A highlights

3 direct, 1 evasive
E-commerce platform degrowth, Rediff DRHP, and FY27 financial plans/capex Evasive
So I think that as we build out and fortunately for us, with the Al-first approach in terms of building out reworks, you will see a lot more activities on the platform side in FY '27. And what Vishwas said is also true, which is we'll combine the platform and the payments more, which actually increases quite a bit of our stickiness. ... Given the regulatory compliances, we are not able to share anything additional at this time.

Analyst questioned the degrowth in a high-margin segment and sought specific financial details on Rediff's IPO and overall capex, to which management provided general strategic direction and cited regulatory constraints for specific numbers.

Asked by Amish Kanani

XDuce status, turnover, investments, and international revenue target Partial
I think that's an incorrect statement. We don't participate in the Board of XDuce and we don't allocate the funds. They have their own control mechanism and they have their own opportunities that they want to explore. And just so that you know, they have been a profitable company. They make a few million dollars every year. ... So to that extent, of course, we were wrong, that the rate of adoption for large enterprises have been slow.

Analyst challenged management on XDuce's investments and the unmet 30% international revenue target, highlighting a potential disconnect between AvenuesAI's strategic objectives and its associate's actions, and management acknowledged slow AI adoption.

Asked by Ayushi

Top drivers for extraordinary TPV growth and balance sheet exposure in lending Direct
So Rahul, I'll take the second question first. We are not going to put our balance sheet for lending. The strategy that we've applied is that we will work with NBFC companies to be able to open up our ecosystem, and that strategy will continue to percolate. What we will do selectively is to invest minority stakes in more than one NBFC.

Clarified the company's asset-light strategy for lending, focusing on partnerships and minority investments rather than direct balance sheet exposure, which is crucial for risk management in financial services.

Asked by Rahul Jain

Sustainability of profitability in FY27 given current investments and potential for operating leverage Partial
So you're right. Quite a few of other costs are front loaded, specifically some of the investments that we're making in the AI setup and also, the opportunities that are there in front of us. So the costs are front loaded. But I think that in pockets, we are seeing the operating leverage kicking in with scale. ... we don't see a hockey stick in FY '27 in profitability.

Addressed concerns about future profitability, indicating that while costs are front-loaded due to AI investments, operating leverage is starting to show in pockets, but a significant jump in profitability is not expected in FY27.

Asked by Rahul Jain

AI as a measurable revenue-generating business line and metrics to track its impact Direct
So I mean, if you come to think of it, Al is in all facets of transaction processing. So in other words, what we do is traditionally, I mean, if you -- I'm assuming your question is around how much is automated in fraud checks using AI and AI frameworks compared to humans or rule-based engines. ... we think that this AI-based frameworks have been evolving. We've been checking and building up. But I think not just I can tell you for sure that practically in all different areas of payments, we are using AI.

Management clarified that AI is deeply embedded across all transaction processing and is not a standalone revenue line, emphasizing its role in efficiency, risk optimization, and merchant monetization rather than direct sales.

Asked by Sanjay Malik

Control point shift from merchants to orchestration platforms with AI agents Direct
But the way I think we need to think about agents is that the agents and who is custodian of that agent. So in a classical way, what you do is intent and execution, there are two separate things. And we as a company will provide a framework for someone to build an agent, and then there are guardrails around that agent. ... The important part is that much like you can imagine that, I mean, what the agent would need to execute will always be in the control of the merchant within the merchant ecosystem.

Addressed concerns about AI agents taking control, reassuring that the control and intent will always remain with the merchant/customer, with AvenuesAI acting as an infrastructure provider.

Asked by Anita Bajaj

3 min read 7 chapters

Detailed narrative

Strategic Evolution to AI-first Financial Infrastructure

AvenuesAI is undergoing a fundamental transformation, moving beyond a traditional payment gateway business to become an AI-first financial infrastructure and transaction intelligence platform. This evolution is driven by the convergence of payment infrastructure, merchant ecosystems, consumer platforms, AI capabilities, and regulatory infrastructure. The company aims to monetize transaction intelligence, merchant workflows, AI-led automation, embedded finance, and intelligent financial ecosystems, rather than solely focusing on transaction processing scale. This strategic shift is expected to create a compounding ecosystem advantage, enhancing automation, risk optimization, and operating leverage.

Q4 & FY26 Financial Performance Overview

The company reported a strong financial performance for both Q4 and the full fiscal year 2026. For FY26, revenue from operations surged by 106.88% YoY to ₹8,116 crores, up from ₹3,923 crores in FY25. Consolidated net revenue increased by 14.63% YoY to ₹603 crores, and consolidated PAT grew by 58.85% YoY to ₹332 crores. In Q4 FY26, revenue from operations reached ₹2,490 crores, marking a 115% YoY and 5% sequential growth. Quarterly net revenue was ₹149 crores (11% YoY growth), and adjusted PAT was ₹95 crores (90% YoY growth). This growth was attributed to increased transaction processing volumes, expansion in enterprise merchant relationships, and international business momentum.

Embedded Finance and Lending Strategy

AvenuesAI is strategically focusing on embedded finance and lending through an asset-light model, avoiding large balance sheet exposure. The company aims to build an intelligent lending orchestration and distribution ecosystem leveraging payments, merchant data, transaction intelligence, and AI-led underwriting. Key initiatives include a proposed strategic investment in Online PSB Loans, which connects to India's digital lending infrastructure, and a 2.5% minority stake investment in NBFC Ratnaafin. These partnerships are designed to strengthen AvenuesAI's position in lending distribution, credit intelligence, and financial product ecosystems.

AI Integration and Impact on Operations

AI is being deeply embedded into AvenuesAI's operating architecture, rather than being a standalone productivity tool. AI capabilities are being built across merchant servicing, fraud management, customer engagement, predictive analytics, workflow automation, and embedded finance. The goal is to enhance customer behavior understanding, optimize collections, improve conversion, and provide customized financial solutions. Management believes AI will drive efficiency, risk management, and long-term operating leverage, contributing to improved payment success rates, reduced transaction failures, and increased cross-sell across ecosystem products.

Rediff Ecosystem and Consumer Engagement

The Rediff ecosystem, historically viewed as an Internet media platform, is increasingly seen as a broader consumer engagement and financial participation layer. AvenuesAI plans to gradually expand RediffOne and RediffPay into areas like payments, financial engagement, wealth, brokerage participation, and AI-led consumer ecosystems. While a confidential DRHP has been filed for Rediff, specific financial details or IPO timelines cannot be disclosed due to regulatory compliance. The company sees a large opportunity in Rediff, particularly in its B2B offerings and the consumer-facing RediffPay UPI app.

International Expansion Focus

International expansion remains a strategic pillar for AvenuesAI. Over the past year, the company expanded its global capabilities through the Middle East and GIFT City infrastructure. For FY27, the United States is identified as an important strategic focus area, driven by opportunities in cross-border commerce, global merchant acquiring, international settlements, and AI-native payment orchestration. This shift in focus from the Middle East to the US is partly due to macroeconomic risks in the Middle East. The objective is to build globally relevant infrastructure capabilities originating from India.

XDuce Investment and Associate Performance

AvenuesAI holds a 20% stake in XDuce, acquired in 2024 for $10 million, which is accounted for as a share of associates. XDuce is based in the United States and has been a profitable company, generating a few million dollars annually. Management clarified that AvenuesAI does not participate in XDuce's board or allocate its funds, and therefore does not control XDuce's investment decisions, such as its recent investments of approximately ₹12 crores in a US cybersecurity firm and DEV Information Technologies. AvenuesAI views XDuce as a strategic partner for its US expansion plans.

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