INFIBEAM - INFIBEAM AVENUES LIMITED Share Price

The management of AvenuesAI Limited provided an optimistic outlook during the Q3 FY '26 earnings conference call, emphasizing a strong business transformation and growth opportunities. The quarterly performance highlighted a consolidated gross revenue of INR 2,381 crores, reflecting a significant year-over-year growth of 122%. However, the consolidated net revenue rose only 6% to INR 149 crores, as management focused on profitability over headline metrics.

Adjustments to operating strategy were evident as adjusted EBITDA for the quarter was reported at INR 98 crores, marking a 25% year-over-year increase and an EBITDA margin boost from 56% to 66%. The adjusted PAT increased 59% to INR 86 crores, showcasing effective cost control and revenue generation strategies.

Major forward-looking points from management included:

1. The transition to an AI-native transaction infrastructure platform is seen as a significant competitive advantage, moving beyond a mere payment gateway model.

2. Management anticipates continued growth in market share and improved monetization through various integrated platforms like CCAvenue and RediffOne.

3. According to forecasts, consumer scale is expected to expand via Rediff, business lock-in deepening through RediffOne, predictable revenue growth through CCAvenue, and margin improvement via AI, all contributing to a structural outcome over the next two years.

4. The company received critical regulatory approvals, including RBI licenses for issuing prepaid instruments and participating in cross-border payments, positioning it well for future growth.

5. Management expressed confidence in achieving and possibly exceeding the revised full-year guidance for FY '26, driven by operational momentum and transaction volumes.

These insights reflect management's confidence in long-term growth and the effectiveness of their evolving business model.

Major Questions and Answers from the Q&A Section:

Question 1: "Sir, my first question is on PayCentral's opportunity... Is this the right way to think about PayCentral's addressable market and adoption potential?"

Answer: "You're right, India is the largest real-time payment market, and PayCentral integrates across various payment aggregators, improving transaction success rates and automating workflows. With our UPI transactions potentially reaching around INR 300 lakh crores, the intelligence layer will command a few basis points from that flow. The adoption is increasing, and we believe it will control merchant financial workflows, creating significant revenue opportunities."

Question 2: "So, I know it is initial stage, but I just wanted to understand how do we monetize it?"

Answer: "Monetization involves earning basis points on transactions, which can add up significantly over time. While traditional gateways may not disappear, AI agents enhance efficiency and allow us to capture additional revenue. The process will evolve as we see increased adoption across merchants."

Question 3: "With the offline PI license now in place, should we view offline as a meaningful accelerator to your AI side?"

Answer: "Yes, having the offline PI license allows us to enhance intelligence in offline transactions. Agents can automate routing decisions, detect fraud, and personalize payments, which unlocks a massive opportunity in the offline market, turning transactions into intelligent decision engines."

Question 4: "So how many merchants have we onboarded on RediffOne, and how is the activity in terms of active transaction and adoption?"

Answer: "Currently, we have more than 20,000 merchants on RediffOne, which is growing well. Our focus is on deeper integration and enabling existing users to engage with payments and AI services. While immediate revenue isn't the goal, building structural control for long-term monetization is."

Question 5: "What led to this guidance upgrade? Is there some one-off revenue or something that we are expecting?"

Answer: "The guidance upgrade reflects our ability to monetize growth effectively. It's not a one-off but a result of our investments in scale and data density. Our recurring performance supports our confidence in meeting and potentially exceeding revised financial objectives."

Question 6: "How much of the improvement in payment failures is structural and embedded versus a model-specific gain?"

Answer: "While structural gains have been accounted for, model-driven improvements contribute significantly to the reduction in payment failures. Our AI enhances routing and fraud detection, but quantifying the exact impact of each element isn't straightforward."

Question 7: "What percentage of revenue today comes from customers where payment, compliance, and workflows are embedded?"

Answer: "Once we offer multiple services to a client, the switching cost increases exponentially. Firms using our integrated systems reap the benefits of data utilization, and this data moat helps reinforce our business model, making it harder for customers to switch."

Question 8: "How do you prevent organizational and product complexity from diluting focus?"

Answer: "The integration of related areas into our core payments strategy enhances focus rather than diluting it. Our orchestration layer utilizes AI frameworks to streamline operations and ensure the ecosystem thrives."

Question 9: "If and when UPI payments become chargeable, does it help us or affect us?"

Answer: "If UPI becomes chargeable, it will benefit us and other players by providing additional revenue streams. We believe that when UPI introduces fees, it should positively impact our margins."

Question 10: "Can you explain how you managed expenses to achieve increased EBITDA alongside muted net revenue growth?"

Answer: "Our focus on efficiencies"”like automating manual tasks and optimizing operations"”has allowed us to improve our EBITDA margin. We are strategically investing in AI capabilities that enhance our overall performance without increasing costs disproportionately."