AvenuesAI Q2 Net Profit Grows Six Percent as Costs Rise
Indian fintech AvenuesAI saw revenue jump 47% in the second quarter, but high operating expenses and aggressive pricing strategy limited bottom-line growth.
AvenuesAI reported a net profit of ₹71.7 Cr for the quarter ending September, a 6% increase from the same period last year. While operating revenue rose 46.5% to ₹287.9 Cr, total expenses surged 49.4% to ₹282.5 Cr, effectively neutralizing much of the revenue gains.
The company attributes the narrowed margins to a competitive pricing strategy intended to scale merchant relationships and transaction volumes. Despite a 19% sequential increase in total payment volume, the company's net take rate moderated to 5.06 basis points. Payment processing services, including the CCAvenue gateway, continue to account for approximately 98% of the firm's revenue.
Looking forward, AvenuesAI is pivoting its capital allocation toward direct AI development rather than routing funds through its Nueromind subsidiary. The firm is also progressing with plans for the public listing of its e-commerce arm, Rediff, and has made minority stake acquisitions in two financial services companies to bolster its ecosystem.
AvenuesAI maintained its full-year FY27 revenue guidance of ₹1,100-1,300 Cr. Shares closed 3.72% lower following the disclosure.