Summary
AvenuesAI Limited - Q3 FY 2026 Earnings Call Summary Friday, February 13, 2026, 4:00 PM IST
Event Participants
Executives [4] B. Ravi, Sunil Bhagat, Vishal Mehta, Vishwas Patel
Analysts [5] Amish Kanani, Darshil Pandya, Deepesh Sancheti, Dhwani Chanda, Mohit Jain
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Payment Volume (TPV) | ₹2.69 lakh crores | +88% YoY; Driven by strong demand from enterprise merchants, utilities, and hospitality. |
| Gross Revenue | ₹2,381 crores | +122% YoY; Growth fueled by higher volumes and international expansion in UAE and Saudi Arabia. |
| Net Revenue | ₹149 crores | +6% YoY; Muted growth relative to TPV due to shift toward large-ticket enterprise transactions with lower take rates. |
| Net Take Rate | 6 bps | -5 bps YoY; Management prioritizing scale and data density over headline margins. |
| Adjusted EBITDA | ₹98 crores | +25% YoY; Operating leverage improved as volumes scaled against stable costs. |
| EBITDA Margin | 66.0% | +1,000 bps YoY; Reflected efficiency gains from automation and AI-led task orchestration. |
| Adjusted PAT | ₹86 crores | +59% YoY; Supported by cost control and higher contributions from value-added services. |
| PAT Margin | 58.0% | +1,900 bps YoY; Significant expansion driven by improved operating leverages and stable credit costs. |
Geographic & Segment Commentary
- Domestic Payments (CCAvenue): Scaled significantly through enterprise, utility, and telecom sectors with a strategic focus on volume-led growth. The segment secured RBI authorization for offline payment aggregation and an in-principle license for Prepaid Payment Instruments (PPI).
- International Markets: Sustained strong transaction volumes in UAE and Saudi Arabia. In Oman, the company expanded its role as a technology partner for multiple leading banks, while the GIFT City unit received IFSCA approval for cross-border settlements and escrow services.
- Platform Business (RediffOne & BillAvenue): RediffOne currently hosts over 20,000 merchants as a productivity suite. BillAvenue continues to gain ground in semi-urban and rural markets, while ResAvenue enabled over 7.6 lakh room nights during the quarter.
Company-Specific & Strategic Commentary
- AI-Native Evolution: Rebranded to AvenuesAI to reflect the shift from a payment gateway to an AI-native transaction infrastructure platform. AI is now embedded in routing, fraud detection, and reconciliation.
- Phronetic AI Integration: Acting as the “brains” of the ecosystem, Phronetic AI reduced payment failures by 9% this quarter through intelligent routing and real-time fraud scoring.
- PayCentral.ai Launch: Introduced a decision-layer platform that cuts across payment aggregators to orchestrate flows; management expects this to eventually earn low single-digit bps on processed volumes.
- Ecosystem Flywheel: Strategic integration of Rediff (consumer intent), RediffOne (merchant operations), and CCAvenue (monetization) to create existential switching costs rather than just contractual ones.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Gross Revenue | ₹8,500 - ₹9,500 crores (FY26) | Upward revision based on stronger-than-anticipated operating momentum and enterprise onboarding. |
| Net Revenue | ₹590 - ₹620 crores (FY26) | Reflects steady monetization of high-volume flows despite competitive pricing. |
| EBITDA | ₹350 - ₹380 crores (FY26) | Expectation of continued margin resilience through AI-driven operational efficiencies. |
| Merchant Adoption | High single to double-digit % (18 months) | Target for onboarding existing CCAvenue merchants onto the RediffOne productivity platform. |
Risks & Constraints
| Risk | Context |
|---|---|
| Take Rate Compression | The shift toward enterprise clients and credit cards has halved the net take rate to 6 bps; management must prove AI value-adds can offset this. |
| Execution Complexity | Managing multiple layers (PPI, Cross-border, AI, Retail) risks diluting focus; management argues these are “naturally interweaved” components of a single flywheel. |
| Regulatory Adoption | While licenses are secured (PPI, Offline PA), the timeline for full monetization of these new regulated products remains subject to market adoption. |
Q&A Highlights
The PayCentral Opportunity
- Question: Is it correct to estimate a ₹300Cr - ₹40,000Cr TPV market for PayCentral based on current automation potential? (Mohit Jain)
- Answer: The TAM is enormous as PayCentral acts as an “operating system for money flows” across all aggregators, not just CCAvenue. It aims to earn low single-digit bps by managing the financial workflow layer rather than just the pipe. (Vishal Mehta)
Margin Expansion & EBITDA Growth
- Question: How did EBITDA grow ₹20Cr when Net Revenue only grew ₹8-9Cr? (Amish Kanani)
- Answer: We have utilized AI to automate manual tasks like reconciliation and onboarding, leading to a leaner workforce mix. This structural shift towards an AI-first framework provides significant margin expansion opportunities. (Vishal Mehta)
UPI Monetization
- Question: What is the impact if UPI payments start becoming chargeable? (Amish Kanani)
- Answer: Any introduction of MDR for UPI would be purely beneficial as current margins are zero. We are advocating through the PCI for MDR on large merchant transactions. (Vishwas Patel)
AI-Driven Success Rates
- Question: Were the 9% reduction in failures structural or model-specific? (Deepesh Sancheti)
- Answer: Largely model-driven. AI gauges success rates in 5-minute windows across 200+ routing options and uses real-time fraud scoring to drop suspicious transactions before they fail. (Vishwas Patel/Vishal Mehta)
Key Takeaway
AvenuesAI delivered a transformative Q3 FY26, characterized by a 122% YoY surge in gross revenue to ₹2,381 crores and a significant EBITDA margin expansion to 66%. While net take rates compressed to 6 bps due to a strategic shift toward high-volume enterprise clients, the company successfully offset this through AI-led operational efficiencies and a 25% growth in adjusted EBITDA. Strategically, the company has transitioned into an AI-native infrastructure provider, securing critical regulatory approvals for PPI, offline aggregation, and cross-border payments. Management raised FY26 guidance across all metrics, signaling confidence in the “flywheel” effect of its Rediff-CCAvenue integration. Future performance hinges on the successful monetization of the PayCentral decision layer and the conversion of its 10-million+ merchant base to the RediffOne ecosystem. Management remains committed to an AI-first strategy to drive non-linear scale and structural margin improvements through FY27.
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