AvenuesAI H1 TPV rose 60% while net revenue declined 2%

AvenuesAI processed Rs 3.245 lakh crore of transaction processing value in H1 FY27, 60% more than a year earlier, while net revenue declined 2% to Rs 298.8 crore as payments net take rate fell to 5.2 basis points from 8.4 basis points. EBITDA nevertheless rose 19% and profit after tax increased 24%.

Why did AvenuesAI’s net revenue fall despite TPV growth?

AvenuesAI reported lower net revenue despite higher transaction volumes because its payments net take rate, or NTR, declined and payment-processing charges are deducted in calculating net revenue. Transaction processing value, or TPV, increased to Rs 3.245 lakh crore in H1 FY27 from Rs 2.022 lakh crore in H1 FY26, while payments NTR fell by 3.2 basis points, or bps, to 5.2 bps.

The presentation defines net revenue as gross revenue less payment-processing charges and direct expenses related to the Platforms business. Gross revenue rose 71% to Rs 5,559.6 crore from Rs 3,245.1 crore, but net revenue fell to Rs 298.8 crore from Rs 305.1 crore. TPV includes both merchant discount rate, or MDR, based and zero-MDR payment options, whereas payments NTR covers only MDR-based payment options.

The comparison shows that the 71% gross-revenue increase did not translate into net-revenue growth in the first half. The presentation does not disclose the split of TPV between MDR-based and zero-MDR payment options, nor does it quantify the individual payment-processing or Platforms expense drivers behind the Rs 6.3 crore decline in net revenue.

Did AvenuesAI’s profits rise in H1 FY27?

AvenuesAI’s reported EBITDA and profit after tax rose in H1 FY27 even though net revenue declined. EBITDA, excluding other income, increased 19% to Rs 198.9 crore from Rs 167.2 crore, while profit after tax, or PAT, increased 24% to Rs 156.5 crore from Rs 126.1 crore.

EBITDA margin expanded to 67% of net revenue from 55%, and PAT margin increased to 52% from 41%. AvenuesAI calculates both margins on net revenue rather than gross revenue, which was Rs 5,559.6 crore in H1 FY27. The presentation does not provide the tax, finance-cost or other line items reconciling EBITDA of Rs 198.9 crore with PAT of Rs 156.5 crore.

What does AvenuesAI’s Q2 FY27 performance show?

AvenuesAI’s Q2 FY27 results show higher TPV and net revenue than Q1 FY27, but lower EBITDA and PAT than in the preceding quarter. TPV reached Rs 1.766 lakh crore, up 51% from Rs 1.172 lakh crore in Q2 FY26 and 19% from Rs 1.479 lakh crore in Q1 FY27. Payments NTR was 5.06 bps, versus 8.2 bps a year earlier and 5.3 bps in Q1 FY27.

Gross revenue increased 47% year on year to Rs 2,879.2 crore and rose 7% sequentially from Rs 2,680.4 crore. Net revenue was Rs 151.3 crore, down 1% from Rs 153.1 crore in Q2 FY26 but up 3% from Rs 147.5 crore in Q1 FY27. EBITDA was Rs 98.9 crore, 3% above the year-earlier quarter and 1% below Q1 FY27, while PAT was Rs 71.7 crore, up 6% year on year but down 15% sequentially.

Q2 EBITDA margin was 65%, compared with 63% in Q2 FY26 and 68% in Q1 FY27. PAT margin was 47%, compared with 44% a year earlier and 57% in Q1 FY27. These percentages, like the H1 margins, are calculated as a share of net revenue.

What is AvenuesAI doing to expand payment volumes?

AvenuesAI is adding payment methods, distribution relationships and AI-led merchant products to CCAvenue, its payment platform serving more than 10 million merchants and supporting more than 200 payment modes. At Global Fintech Fest 2026, CCAvenue launched the AI Suite under CommerceAI, comprising AI Forms, AI Invoicing and AI-powered Integration for form creation, invoicing, collections and gateway integration.

CCAvenue extended Apple Pay to its wider merchant network on September 30 for in-store, in-app and online payments, after initially enabling it for international guests at Oberoi Hotels & Resorts and Trident Hotels. It also integrated Amazon Pay Balance, which the presentation says has more than 70 million customers, through deep links intended to improve payment success rates and reduce checkout abandonment. The presentation does not give a resulting transaction or conversion figure.

CCAvenue also integrated Visa Payment Passkey and disclosed bank-led arrangements with YES BANK and DCB Bank. It will power YES BANK’s YES Smart Pay receivables platform, while DCB Bank extended AI Forms to education customers for collections through email, SMS or WhatsApp. AvenuesAI does not quantify the H1 FY27 revenue contribution of these arrangements or their effect on the 5.2-bps payments NTR.

Conclusion

AvenuesAI’s H1 FY27 results show a divergence between transaction volumes, gross revenue and net revenue. TPV rose 60% to Rs 3.245 lakh crore and gross revenue increased 71% to Rs 5,559.6 crore, while payments NTR fell to 5.2 bps and net revenue declined 2%. Margin expansion still lifted EBITDA to Rs 198.9 crore and PAT to Rs 156.5 crore.

The next disclosed benchmark is AvenuesAI’s FY27 guidance. Management expects gross revenue of Rs 11,000 crore to Rs 13,000 crore, compared with FY26 actual gross revenue of Rs 8,115.8 crore, and earnings per share of Rs 8.75 to Rs 9.50, compared with FY26 actual earnings per share of Rs 9.42. The key unresolved matter is whether growing payment volumes and new merchant products can be accompanied by stabilisation in payments NTR and net revenue.