According to latest reports, AvenuesAI delivered exceptional financial performance in Q1 FY27, with consolidated net profit surging 45% year-on-year to ₹85 crore from ₹61.3 crore in the corresponding quarter of the previous year. However, the company experienced margin compression during the quarter, with EBITDA margins narrowing to 3.7% from 5.5% in the year-ago period. The company demonstrated strong operational efficiency with operating profit margin expansion from the previous year, though specific margin figures were not disclosed in the latest data. Profit before tax rose 10% to ₹86.65 crore during the quarter, while EBITDA excluding other income grew 41% year-on-year to ₹100 crore. The company's shares fell nearly 6% to ₹16.55 following the margin compression announcement.
As reported by multiple sources, AvenuesAI achieved remarkable revenue growth with operating revenue zooming 109% year-on-year and 8% quarter-on-quarter to ₹2,680.4 crore in Q1 FY27. Including other income of ₹28.4 crore, total income for the quarter stood at ₹2,708.8 crore. The company's payments business generated ₹2,625.9 crore in Q1, more than double year-on-year from ₹1,226.5 crore, while its ecommerce platform business contributed ₹54.5 crore, which was broadly flat year-on-year. Despite strong revenue growth, total expenses more than doubled year-on-year to ₹2,624 crore.
According to the latest financial data, AvenuesAI demonstrated strong operational leverage with EBITDA excluding other income at ₹100 crore, up 41% year-on-year. The company's payments business generated over ₹2,600 crore in revenue, more than double the previous year, while its ecommerce platform business remained stable. The sharp rise in expenses to ₹2,624 crore indicates continued expansion in the company's digital payments business, signaling strong growth momentum despite increased investment costs. However, the margin compression from 5.5% to 3.7% in EBITDA margins represents a concerning trend for investors.
As reported by AvenuesAI, the company is entering the new financial year with a comprehensive business agenda focused on three key areas: unlocking value from Rediff, expanding CCAvenue deeper into the US market, and building an AI-led Transaction Intelligence Score (TISCO) platform. The company's FY27 revenue guidance forecasts consolidated revenue of ₹11,000-13,000 crore, with growth expected to be supported by scaled payments business, international expansion, Rediff monetisation and emerging AI-led opportunities. According to Chairman and Managing Director Vishal Mehta, the strategy aims to exit FY29 with both a stronger earnings base and significantly larger AI-led businesses. The company expects its core payment business to remain strongly profitable and generate rising operating accruals, with a portion of that incremental capacity directed towards AI, transaction intelligence and other high-conviction growth opportunities.
During Q1 FY27, AvenuesAI received significant regulatory approvals including in-principle approval from the Central Bank of the UAE for Avenues World's Category III Retail Payment Services licence. In India, the Reserve Bank of India authorised AvenuesAI's GoWallet to set up a payment system for issuance and operation of Prepaid Payment Instruments. The company also announced plans to acquire secondary equity stakes of up to 7% in Online PSB Loans and up to 2.50% in RatnaFin Capital to deepen participation in India's digital lending and NBFC ecosystems. The company's board approved the draft scheme of amalgamation of Nueromind Technologies Private Limited within itself, subject to shareholder, regulatory and other approvals, to accelerate AI deployment across payments, digital commerce and enterprise businesses. Additionally, the Board has approved a proposal to increase the face value of the company's equity shares from ₹1 to ₹10 to rationalise and simplify its capital structure.
