AvenuesAI Q2 Net Profit Rises 6% YoY To ₹72 Cr, Revenue Up 47%

AvenuesAI (formerly Infibeam Avenues) reported a 6% growth in its net profit to ₹71.7 Cr in the quarter ended September (Q2 FY27) from ₹67.7 Cr a year earlier. On a sequential basis, net profit declined 15.4% from ₹84.8 Cr.

Meanwhile, its operating revenue grew 46.5% YoY and 7.4% QoQ to ₹287.9 Cr during the quarter under review. Including other income of ₹2.8 Cr, total income during the quarter stood at ₹290.7 Cr. 

The fintech company’s operating EBITDA, excluding other income, grew just 3% YoY to ₹9.9 Cr. This came as its total expenses rose 49.4% YoY and 7.7% QoQ to ₹282.5 Cr in Q2 FY27, outpacing the growth in operating revenue.

At the same time, its consolidated net revenue, after accounting for payment processing and other costs, declined 1% YoY to ₹151.3 Cr in Q2 FY27. 

AvenuesAI attributed the decline to its ‘competitive pricing strategy’ amid efforts to deepen merchant relationships and increase transaction volumes. As a result, its net take rate moderated 4% to 5.06 bps despite a 19% sequential increase in its total payments volume to ₹1.77 Lakh Cr. 

The company generated ₹282.2 Cr in revenue from its payment business, which includes its CCAvenue payment gateway, payment infrastructure services to banks (CPGS), and credit and lending-related services, accounting for nearly 98% of its operating revenue during the quarter. The remaining ₹5.7 Cr was derived from its ecommerce platform business, Rediff. 

AvenuesAI Looks To Unlock Value Across Subsidiaries

Alongside its financial performance, AvenuesAI outlined its plans to expand its AI capabilities, with advanced technology development and AI software-related work remaining among the key objectives of its rights issue. 

In June last year, the company had raised ₹700 Cr via a rights issue, primarily for the repayment of outstanding loans, expansion of its IPO-bound digital content and ecommerce marketplace Rediff and further investments in its AI arm, Nueromind, for which it had earmarked ₹294 Cr. 

Almost 42.7%, or ₹297.2 Cr, of the net proceeds remained unutilised at the end of the September quarter.

AvenuesAI has now announced that it will directly utilise the funds for AI development and software-related activities instead of routing the investment through Nueromind. It clarified that the change was limited to the mode of implementation, with no alteration to the end use of the proceeds.

In the June quarter, AvenuesAI announced plans to amalgamate Nueromind with itself, subject to NCLT approval.

It is also developing its Transaction Intelligence Score (TISco), an AI-led initiative that will use permitted transaction and merchant-behaviour signals for risk assessment, fraud prevention, merchant intelligence and financial services workflows.

The company aims to use its transaction infrastructure to build an intelligence layer that can support merchant and enterprise services.

On the investment front, AvenuesAI said it made investments in two financial services companies during the September quarter. It acquired a stake of up to 7% in Online PSB Loans Limited for a consideration of up to ₹65 Cr. It also invested up to ₹34.5 Cr to acquire a stake of up to 1.38% in Ratnaafin Capital Private Limited.

The company also reiterated its plans to expand CCAvenue’s international payments business, particularly in the US, by leveraging its payment technology, enterprise relationships and regulated infrastructure.

Meanwhile, its ecommerce arm, Rediff, is on its way to the bourses for a separate listing. After filing for an IPO confidentially earlier this year, the markets regulator SEBI approved the draft papers in August. 

However, the Q2 disclosure did not provide an update on Rediff’s proposed IPO. As per sources, Rediff would look to raise in between ₹600-800 Cr via the IPO

AvenuesAI outlined that unlocking value from Rediff is one of its three strategic priorities for FY27. It plans to integrate Rediff’s consumer and enterprise digital ecosystem with its payments and AI capabilities. This includes RediffOne, which offers digital commerce and communication services, and RediffPay, which is intended to expand consumer payment engagement.

AvenuesAI has maintained its FY27 consolidated revenue guidance of ₹1,100-1,300 Cr.

The company said its focus for the remainder of FY27 will remain on expanding merchant relationships, improving operating discipline and creating additional monetisation opportunities through Rediff, enterprise technology and applied AI.

It is also monitoring potential changes to the merchant discount rate (MDR) policy for eligible UPI transactions, with any introduction, timing or scope remaining subject to government and regulatory decisions.

Shares of AvenueAI ended today’s trading session 3.72% lower at ₹129.25. 

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