Infibeam Avenues: Q2 FY26 Performance Highlights and AI-Driven Future

Infibeam Avenues Limited, a pioneering AI-powered tech and fintech company, has reported its best-ever financial performance for the second quarter ended September 30, 2025 (Q2 FY26). The company achieved record revenues and profits, underscoring its strategic transformation and robust operational execution. Consolidated Gross Revenue soared to INR 1,964.9 crore, marking an impressive 93% year-on-year (YoY) growth and a 53% quarter-on-quarter (QoQ) increase. Net Revenue stood at INR 153.1 crore, up 14% YoY. Adjusted EBITDA reached INR 93.7 crore, reflecting a 10% YoY growth, while Profit After Tax (PAT) climbed to INR 64.9 crore, an 18% YoY increase. This strong performance positions Infibeam Avenues to approach a USD 1 billion annual revenue run rate, ahead of its earlier projection for March 2026.

The company's performance was primarily driven by its Payment Business segment, which contributed INR 1,900.16 crore, accounting for 96.7% of the total revenue. The E-Commerce Platform Business contributed INR 64.75 crore, or 3.3% of the total. This highlights the company's focused shift towards its core payment infrastructure and AI-driven solutions. Total Payment Volume (TPV) saw a significant jump of 33% YoY, reaching INR 117,200 crore, fueled by an improved card payment mix and a substantial increase in new merchant additions. The management emphasized a conscious decision to optimize for absolute profits and larger transaction volumes, even if it meant a slight reduction in the net take rate.

Strategic Realignment and AI-First Vision

Infibeam Avenues has undergone a significant strategic realignment, transitioning from a diversified, multi-platform structure to a streamlined focus on digital payments and AI-driven solutions. This clarity has enhanced operational efficiency and accelerated revenue growth. A pivotal move was the transfer of its Platform Business Undertaking to Rediff.com India Ltd., increasing Infibeam's stake in Rediff to 82.66%. This restructuring positions Infibeam as a pure-play financial technology and AI-driven payments company, while Rediff.com will spearhead an AI-first platform strategy encompassing commerce, content, and consumer engagement.

The company's AI roadmap is progressing rapidly through its dedicated artificial intelligence arm, Phronetic AI. A key highlight is the launch of PayCentral.ai, India's first agentic payment platform built on Google's Agent Payment Protocol (AP2). This innovation enables AI agents to autonomously transact, create dynamic payment links, process refunds, and manage subscriptions, marking a significant leap for future AI-commerce integration. Furthermore, a strategic MoU with Nawgati Tech aims to deploy Video-LLMs and agentic AI in industrial automation, expanding Phronetic AI's reach beyond digital payments into sectors like fuel, fleet, and energy.

Expanding Regulatory Footprint and Consumer Reach

Infibeam Avenues has significantly strengthened its regulatory capabilities. The company received in-principle approval from the International Financial Services Centres Authority (IFSCA) to operate as a Payment Service Provider at GIFT City. This strategic expansion into India's international financial hub will facilitate cross-border payments, money transfers, and escrow services, tapping into substantial monetization opportunities. Additionally, the Reserve Bank of India (RBI) granted in-principle authorization to issue Prepaid Payment Instruments (PPIs). This allows Infibeam to roll out digital wallets, prepaid gift cards, and travel/transit cards under its new brand, CCAvenue Go, and power the upcoming RediffPay consumer UPI app. This completes a full regulatory stack, making Infibeam one of the few Indian fintechs with end-to-end authorization and licenses from the Reserve Bank.

RediffPay, slated for a full-scale launch by Q4 FY26, is expected to leverage Rediff.com's existing base of over 100 million registered email users, offering a low customer acquisition cost. The company plans to invest INR 500-700 crore in Rediff over the next three years to build out this consumer ecosystem, including RediffOne (a unified suite of communication, commerce, and productivity platforms) and Rediff TV (India's first fully AI-driven content streaming platform). This dual-engine strategy aims to monetize both merchant and consumer sides of the digital payments ecosystem.

Outlook and Future Growth

Infibeam Avenues is well-poised for future growth, with management guiding for Gross Revenue between INR 5,000 crore and INR 5,500 crore for FY26, representing 25-38% YoY growth. Net Revenue is projected to be between INR 540 crore and INR 600 crore, with EBITDA between INR 325 crore and INR 350 crore, and PAT between INR 210 crore and INR 220 crore. The company expects to achieve the higher end of this guidance range, driven by momentum in both its fintech and AI-led businesses. International payments are anticipated to contribute double-digit net revenue within the next 12-18 months, further diversifying revenue streams. Infibeam Avenues' disciplined growth, strategic clarity, and aggressive push into AI-driven solutions underscore its commitment to sustainable profitability and long-term shareholder value creation in India's expanding digital economy.