INFIBEAM - Infibeam Avenues

📊 NSE: INFIBEAM 🏢 Computers - Software - Medium / Small 📅 Last Updated: 12/14/2025 8:04

💰 Financial Performance

Revenue Growth by Segment

Consolidated Gross Revenue grew 93% YoY to INR 1,965 Cr in Q2 FY26. The payment business segment specifically demonstrated 84% revenue growth on a half-year basis in H1 FY26, driven by higher Transaction Processing Volumes (TPV).

Geographic Revenue Split

Not explicitly disclosed in percentage terms, but international operations span the UAE, Saudi Arabia, Australia, USA, and Oman, where the company partners with the three largest banks.

Profitability Margins

Net Revenue grew 14% YoY to INR 153.1 Cr in Q2 FY26. PAT margin stood at 42% of Net Revenue, up from previous periods, driven by margin expansion in AI services and cost optimization.

EBITDA Margin

Adjusted EBITDA margin was 61% of Net Revenue in Q2 FY26, with absolute EBITDA reaching INR 93.7 Cr (up 10% YoY and 32% QoQ) due to strong operational leverage.

Capital Expenditure

Not disclosed in absolute INR Cr, but the company is 'investing aggressively' in AI infrastructure and consumer expansion through the Phronetic.AI brand and Rediff.com integration.

Credit Rating & Borrowing

Credit rating reaffirmed at [ICRA]A- with the outlook revised from Negative to Stable. The company prepaid its entire term debt in H1 FY2022, resulting in a strong interest coverage ratio of 38.8 times.

⚙️ Operational Drivers

Raw Materials

Payment processing charges and direct expenses related to Platforms business represent approximately 92% of Gross Revenue (INR 1,812 Cr in Q2 FY26).

Import Sources

Not applicable as a fintech service provider; however, international transaction processing occurs across the Middle East (UAE, Oman, Saudi Arabia), USA, and Australia.

Key Suppliers

Key partners include over 200 banks globally, including strategic partnerships with the three largest banks in Oman for payment gateway services.

Capacity Expansion

Currently serves over 10 million merchants. Expansion is being achieved through the acquisition of an 82.66% stake in Rediff.com to transition into a hybrid B2B and B2C organization.

Raw Material Costs

Operating expenses (primarily payment processing fees) represent 92.2% of Gross Revenue. Net Take Rate (NTR) for payments decreased 27% YoY to 8.2 bps in Q2 FY26 due to competitive pricing pressure.

Manufacturing Efficiency

Not applicable; however, operational leverage is reflected in the 32% QoQ EBITDA growth compared to a 14% YoY Net Revenue growth.

Logistics & Distribution

Not applicable.

📈 Strategic Growth

Expected Growth Rate

93%

Growth Strategy

Achieving growth through a transition to a hybrid B2B/B2C model, aggressive expansion into AI infrastructure (Phronetic.AI), and international scaling in the GCC region and USA. The company is targeting a $1 billion annual revenue run rate by March 2026.

Products & Services

CCAvenue (Payment Gateway), BillAvenue (Bill Payments), ResAvenue (Hospitality Solutions), GeM (Government e-Marketplace platform), and Phronetic.AI (AI-driven fintech solutions).

Brand Portfolio

CCAvenue, BillAvenue, ResAvenue, Phronetic.AI, Rediff.com, Go Payments.

New Products/Services

Phronetic.AI solutions and cross-border payment services from GIFT City (IFSC) following in-principle approval from IFSCA.

Market Expansion

Strategic expansion into Saudi Arabia, Oman, and the USA, alongside the integration of Rediff.com's 82.66% stake to capture consumer-direct digital traffic.

Market Share & Ranking

CCAvenue is ranked as a key player and the 3rd largest in the Indian payment processing industry.

Strategic Alliances

Partnerships with 200+ banks and a strategic PSP approval at GIFT City to facilitate international fintech transactions.

🌍 External Factors

Industry Trends

The industry is shifting toward AI-integrated fintech. Infibeam is positioning itself at the intersection of payments and AI to counter the 27% YoY decline in traditional payment take rates.

Competitive Landscape

Competes with Billdesk, PayU, and Razorpay. Competitors' ability to burn cash for client acquisition creates sustained pricing pressure.

Competitive Moat

Moat is built on network effects from 10 million+ merchants and deep integration with 200+ banks. Sustainability is challenged by competitors with high venture capital funding support.

Macro Economic Sensitivity

Highly sensitive to Indian e-commerce growth and digital payment adoption rates. TPV rose 33% YoY to INR 1,172 billion, reflecting strong macro tailwinds.

Consumer Behavior

Shift toward unified digital ecosystems (payments + platforms), which Infibeam is addressing through the Rediff.com acquisition.

Geopolitical Risks

Exposure to regulatory and economic shifts in the Middle East, particularly in Oman and Saudi Arabia where international operations are concentrated.

⚖️ Regulatory & Governance

Industry Regulations

Subject to RBI and NPCI regulations on payment gateways and MDR. Recently secured in-principle approval from IFSCA to operate as a Payment Service Provider at GIFT City.