INFIBEAM - INFIBEAM AVENUES LIMITED Share Price

Management of Infibeam Avenues Limited provided a positive outlook during the earnings conference call held on August 8, 2025. They highlighted the company's strategic focus on "platform convergence," emphasizing the need for integrated solutions in response to evolving market demands. Management stated that they are transitioning their e-commerce platform infrastructure business to Rediff.com for Rs.800 crores, with the intent of gaining better synergy with Rediff's productivity-driven platforms.

Key forward-looking points include:

1. Revenue Guidance: Management projects total revenue for FY '26 between Rs.5,250 crores and Rs.5,500 crores, with net revenue expected to fall in the range of Rs.540 crores to Rs.600 crores.

2. EBITDA and PAT Forecast: Management anticipates an EBITDA of Rs.325 crores to Rs.350 crores, and PAT between Rs.220 crores and Rs.240 crores for the fiscal year.

3. Run Rate Expectations: Rediff is expected to achieve a run rate of Rs.300 crores shortly after the platform convergence, with an ambitious target of Rs.1,000 crores within the next 12 months.

4. Digital Payments Focus: Infibeam will concentrate on strengthening CCAvenue, one of India's leading payment gateways, while enhancing their AI capabilities through Phronetic.AI.

5. Expenses and Strategic Investments: The company plans to invest significantly in branding and marketing to promote RediffPay and other platforms which may lead to short-term margin impacts but are seen as essential for long-term growth.

6. Market Expansion: Management identifies key target markets for international expansion, particularly in the Middle East, including the UAE and Saudi Arabian markets, aiming for a contribution of 12% to 15% from international sources of payments net revenue by FY '28.

These insights reflect strong momentum, a clear strategic direction, and confidence in achieving significant growth in the digital payments and AI sectors.

Question: "Just a few questions. Firstly, on the transaction, if I understood the contours of the transaction, basically, we have valued the business that we are -- the platform business that we are passing on at INR800 crores, out of which half of the consideration is coming against 28% additional stake in the Rediff business..."

Answer: Yes, you're right. The valuation has jumped due to Rediff's significant traction with large enterprises recently, despite its historical context. The platform improvements in security and data localization have attracted clients such as HDFC Life. Additionally, the launch of RediffPay and a revamped media framework indicates growth potential. We expect to reach INR300 crores run rate shortly and aim for INR1,000 crores within the next 12 months post-integration.

Question: "Regarding the Phronetic AI, it's positioned as a strategic growth engine. Could you share the monetization model and expected revenue mix from the AI-driven products like, fraud detection and intelligent routing by FY '28?"

Answer: Phronetic AI encompasses VLLMs, reasoning models, and orchestration. Our monetization will involve licensing for each deployed instance and charging based on usage, including token call fees. Currently, we're generating upwards of $1 million annually. We foresee a substantial escalation in revenues as we expand integrations and deliver more scalable, full-stack AI solutions.

Question: "We saw a significant rise in our revenues this quarter, but the profit, the net profit has been almost lower than last year and flat quarter-on-quarter. Where do you see the margins "“ what's taking the hit on margins?"

Answer: Our reported profit is influenced by a mark-to-market loss that isn't cash-impacting. Adjusted PAT stands at INR85 crores, reflecting a 70% increase. This notional adjustment skews perceptions of our margin performance. As Rediff consolidates operational costs, strategic spending will initially reduce profits but is intended to enhance long-term growth.

Question: "Given that media ventures can be capital intensive before monetization kicks in, what is the breakeven horizon for Rediff-TV? How do you see ad tech integration impacting Rediff's overall margin profile?"

Answer: Rediff-TV is currently profitable on a variable cost basis due to its ad integration without heavy capital expenditures, as it's designed for efficiency. We anticipate a breakeven within a year given that we're leveraging technology to produce content with minimal human intervention, making our operational costs more manageable.

Question: "What portion of the rights issue will go towards AI infrastructure, and what is the capex per site for your 12 AI data centers you're looking to expand?"

Answer: For the rights issue, we plan to fund AI marketplace development and payments expansion, with partial allocation for IT infrastructure. We anticipate a capex of $1 million to $3 million per site, and aim for ROI within 18 to 36 months by closely following client needs and establishing efficient data center practices.