Q1 2027 Avenuesai Ltd Earnings Call Transcript
Key Points
- Consolidated gross revenue surged 109% YoY to INR 2,680 crore, with PAT up 45% to INR 85 crore.
- Received in-principle approval from the Central Bank of UAE for a retail payment services license (CAT3), strengthening international expansion.
- RBI authorized AvenuesAI Ltd (BOM:539807) to set up a payment system for prepaid payment instruments, enhancing its regulated payments infrastructure.
- Launched PayCentral, India's first agentic payment platform built on Google's agent payments protocol, positioning the company at the forefront of AI-driven payments.
- Strategic asset-light credit partnerships with RatnaFin and Online PSB Loans are progressing, enabling credit distribution without balance sheet lending risk.
- EBITDA (ex-other income) grew 41% YoY to INR 100 crore, with EBITDA margin expanding to 68% of net revenue from 47% a year ago.
- Rediff Pay is set to exit CUG and enter production this month, adding a consumer UPI payments leg to the business.
- The merger of Neuromind (AI subsidiary) into AvenuesAI Ltd (BOM:539807) is expected to drive synergies, cost benefits, and faster AI adoption.
- FY27 guidance projects consolidated revenue of INR 11,000-13,000 crore (35%+ growth) and EPS of INR 8.75-9.5 per share post reverse split.
- Transaction processing volume grew 74% YoY to INR 1,479 billion, with strength across utilities, government, retail, B2B, and hospitality.
- Net revenue declined 3% YoY to INR 147 crore, reflecting take rate compression in the competitive payments business.
- The company is consciously reinvesting incremental cash flows into AI and new platforms, limiting near-term EPS growth despite strong revenue growth.
- PayCentral and AI-driven agentic payments are still in early stages, with meaningful commercial traction expected only in 9-18 months.
- Rediff Pay's contribution to FY27 guidance is minimal, as it is still pre-launch and scaling is uncertain.
- International growth, particularly in the Middle East, has been impacted by macroeconomic headwinds, though management views this as short-term.
- The reverse split (face value increase from INR 1 to INR 10) may be perceived as a liquidity-reducing measure, though management argues it improves shareholder perception.
- The company's asset-light credit model relies on regulatory approvals and partner execution, which could face delays or setbacks.
- Token costs for AI infrastructure are inflationary, though the company passes on costs to clients and uses SLMs to reduce expenses.
- The company's focus on horizontal merchant acquisition in India may limit its ability to win large, high-value clients compared to international markets.
- Management admitted it could have expanded internationally more aggressively and made larger AI investments in the past year.
Ladies and Gentlemen, Good day and welcome to the Avenues AI Limited Earnings Conference Call Q1FI 27 hosted by Co India Advisors.
As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes.
(Operator instructions)
Please note that this conference is been recorded. I now hand the conference over to Mr. Rajat Gupta from Co India Advisors. Thank you and over to you sir.
Thank you Anushka. Good evening everyone and welcome to Avenue AI Limited Earnings Call to discuss the Q1 FY27 results.
We have on the call with us today Mr. Vishal Mehta, Chairman and Managing Director Mr. Vishwas Patel, Managing Director and Chief Executive Officer Mr. Sunil Bhagat, Chief Financial Officer and also Mr. B. Ravi, who is advising Avenues AI on corporate and financial strategy as an independent consultant.
We must remind you that the discussion on today's call may include certain forward-looking
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