AvenuesAI, a leading Indian digital payments company, reported a 6% increase in net profit to Rs 71.7 crore in Q2 FY27, alongside a sharp 47% revenue jump to Rs 2,879 crore, underlining strong demand in its payments operations and outlining ambitious expansion plans.
- Net profit grew 6% to Rs 71.7 crore in Q2 FY27
- Revenue surged 47% to Rs 2,879 crore, payments revenue up 49%
- Raised FY27 revenue target to Rs 13,000 crore amid strategic initiatives
What happened
AvenuesAI's consolidated net profit for the quarter ending September FY27 rose 6% year-on-year to Rs 71.7 crore. Meanwhile, revenue from operations surged 47% to Rs 2,879.2 crore, driven primarily by the company’s payments business under the CCAvenue brand. The payments vertical saw a 49% increase in revenue to Rs 2,822.4 crore with total payment value reaching Rs 1.77 lakh crore.
On a sequential quarter basis, net profit declined over 15% due to increased operating expenses, which climbed 49% to Rs 2,825.3 crore. The company is focusing on growing transaction volumes through competitive pricing, resulting in a moderation of its net take rate to about 5.06 basis points from 5.3 basis points in the previous year. Its enterprise ecommerce segment saw a revenue decline and profit drop during this period.
Why it matters
AvenuesAI's performance highlights the resilience and growth potential of India's digital payments sector. Despite higher expenses that impacted quarterly profits sequentially, the company’s substantial revenue growth underscores strong merchant adoption and increased transaction volumes. The adjusted net take rate signals a strategic investment in long-term merchant relationships rather than short-term margin maximization.
The company’s initiatives to unlock value through integration with Rediff's enterprise and consumer offerings, expanding its international payments footprint, and leveraging AI-driven transaction intelligence represent a multi-pronged strategy to diversify revenue streams. These efforts are expected to position AvenuesAI as a more comprehensive fintech ecosystem player rather than a pure payments processor.
What to watch next
Monitor the progress of RediffPay’s full-scale rollout and integration of RediffOne, the unified business suite for enterprises, as these are key drivers for unlocking new revenue opportunities from both consumer and enterprise segments. The potential Rediff IPO, targeting Rs 600-800 crore, could also provide fresh capital to fuel further growth.
Track the expansion of AvenuesAI's CCAvenue payment gateway in international markets including the US, UAE, and Saudi Arabia, which could provide diversification and growth opportunities beyond India. The company’s investment in its AI-powered Transaction Intelligence Score (TISco) will be critical in enhancing risk management and merchant value-add, potentially improving long-term profitability and competitive differentiation.