AvenuesAI (539807) Q2 25/26 earnings summary

Executive summary

• Achieved record consolidated revenue of INR 19,649 million in Q2 FY26, up 93% year-over-year and 53% sequentially, nearing a $1 billion annual revenue run rate.

• Profit after tax (PAT) rose to INR 677 million, up 42% year-over-year, with a PAT margin of 42% and improved operational efficiency.

• Transitioned to a hybrid B2B and B2C model, focusing on AI-driven fintech infrastructure and consumer/merchant platforms.

• Completed strategic sale of the Platform Business to Rediff.com, increasing stake to 82.66% and sharpening focus on fintech and AI.

• Rights issue successfully completed, raising INR 3,499.9 million, oversubscribed by 1.4x, with proceeds allocated to AI infrastructure and Rediff ecosystem expansion.

Financial highlights

• Q2 FY26 gross revenue: INR 19,649 million (+93% YoY, +53% QoQ); net revenue: INR 1,531 million (+14% YoY); adjusted EBITDA: INR 937 million (+10% YoY, +32% QoQ); PAT: INR 677 million (+42% YoY).

• TPV reached INR 1,172 billion, up 33% YoY and 38% QoQ.

• EBITDA margin at 61% and PAT margin at 42% for Q2 FY26.

• Cash and cash equivalents increased to INR 6,824.2 million as of September 30, 2025.

• Net cash from operating activities for H1 FY26 was INR 3,237.1 million.

Outlook and guidance

• FY26 guidance: gross revenue of INR 50,000–55,000 million (25–38% YoY growth), net revenue of INR 5,400–6,000 million (3–14% YoY), EBITDA of INR 3,250–3,500 million (4–12% YoY), and PAT of INR 2,100–2,200 million (0–5% YoY).

• Company is nearing a USD 1 billion annual revenue run rate, driven by TPV growth, merchant additions, and AI integration.

• Focus on absolute EBITDA growth, sustainable cash generation, and long-term shareholder value.

• Targeting 12–15% international contribution to payment net revenue by FY28, with expansion in GCC, USA, Australia, and Southeast Asia.

• Expect to close FY 2026 at the higher end of guidance, supported by fintech and AI-led businesses.