AvenuesAI, formerly Infibeam Avenues, announced a 6% year-on-year increase in net profit to ₹71.7 crore for Q2 FY27 ending September, alongside a 46.5% rise in operating revenue to ₹287.9 crore, driven largely by growth in its payments business amid competitive pricing strategies.
- Q2 net profit rose 6% YoY to ₹71.7 Cr; sequentially down 15.4%
- Operating revenue increased 46.5% YoY to ₹287.9 Cr, driven by payments
- Investments in AI and financial services, Rediff IPO planned
What happened
In the quarter ended September 2026 (Q2 FY27), AvenuesAI reported a net profit of ₹71.7 crore, marking a 6% increase from the ₹67.7 crore earned in the same period last year. This was despite a sequential decline of 15.4% from the previous quarter’s ₹84.8 crore. Operating revenue surged 46.5% year-on-year to ₹287.9 crore, supported by a 19% sequential rise in total payments volume to ₹1.77 lakh crore.
The company’s consolidated net revenue, which accounts for payment processing and other related costs, dropped slightly by 1% year-on-year to ₹151.3 crore due to a competitive pricing strategy aimed at deepening merchant relationships. Operating EBITDA saw a modest 3% year-on-year increase to ₹9.9 crore, constrained by rising expenses that outpaced revenue growth.
Why it matters
AvenuesAI’s financial results reveal a strategic trade-off between revenue growth and profitability, driven by its pricing approach to gain market share and transaction volume. The moderation of its net take rate despite higher payment volumes indicates ongoing competitive pressures in the fintech payments sector.
The company is positioning itself for growth beyond core payments, significantly expanding its AI capabilities through direct investment instead of via its subsidiary Nueromind, and developing transaction intelligence technologies like the Transaction Intelligence Score (TISco). These advancements aim to enhance risk assessment, fraud prevention, and merchant intelligence services, potentially strengthening its service ecosystem.
What to watch next
Monitoring the outcomes of its planned amalgamation with Nueromind will be crucial, as will the execution of its AI software development initiatives utilizing the unspent ₹297.2 crore from its recent rights issue. The company’s investments in financial firms Online PSB Loans and Ratnaafin Capital suggest a continued diversification into financial services.
Additionally, AvenuesAI’s ecommerce segment Rediff is anticipated to complete its IPO with an expected capital raise between ₹600-800 crore, which could unlock value and drive integration of digital commerce with its payment and AI services. Expansion of CCAvenue’s international payments, especially in the US market, will be another key area to watch for growth momentum.