Thank you Anushka. Good evening everyone and welcome to Avenues AI Limited earnings call to discuss the Q1 FY27 results.

We have on the call with us today Mr. Vishal Mehta, Chairman and Managing Director; Mr.

Vishwas Patel, Managing Director and Chief Executive Officer; Mr. Sunil Bhagat, Chief Financial Officer; and also Mr.

B. Ravi, who's advising Avenues AI on corporate and financial strategy as an independent consultant.

We must remind you that the discussion on today's call may include certain forward-looking statements and must be viewed in conjunction with the risks that the company faces. I now request Mr.

Vishal Mehta to take us through the company's business outlook and financial highlights, subsequent to which we'll open the floor for Q&A. Thank you and over to you, sir.

At the outset, I want to let you know that we had strong revenues this quarter. Revenues increased by 109% year-over-year.

We've been concentrating on building volumes and absolute profitability, and both have gone in the right direction, with the profit after tax going up by 45%. I want to walk you through the Avenues AI strategy.

We believe we've got four focus areas: one is payments, second is consumer, third is intelligence, and fourth is credit. They increasingly reinforce one another.

Payments is our foundation. CCAvenue moves money for merchants and continues to fund our investments in the next phase of our business.

Consumer is Rediff. Rediff, Rediff1, RediffPay, Rediff TV, they give us direct relationship with consumers and business, something most fintech companies simply may not have.

Intelligence is Phronetic AI, which is now proposed to be merged with Avenues AI. We are putting AI on top of transactions, payments, and enterprise workflows to create new products and capabilities.

Credit is our emerging distribution layer. Through strategic minority investments in regulated financial institutions, we can distribute credit without putting lending risk on Avenue AI balance sheet.

The important point is that these are no longer separate businesses, they're becoming one integrated platform. We've been building Rediff into a broader consumer and enterprise platform.

RediffPay is progressing well as our UPI-based consumer payments platform. It will be out of CUG this month and into production.

Rediff1 is evolving into an operating platform for businesses bringing together commerce, communication, compliance, and intelligence. Rediff TV as in news and Rediff Gurus, they add content and community.

The opportunity is therefore much bigger than legacy Rediff business. We're connecting Rediff's consumers and business with Avenues AI learning from payments and AI capabilities and unlocking value from the ecosystem.

AI is the next layer of payments. We believe the next generation of payments will not simply move money faster, it will enable machines to transact.

Through Phronetic AI, we launched PayCentral, which we believe is India's first agentic payment platform built on Google's Agent Payments Protocol. It enables AI agents to transact directly with one another without requiring a person to manually initiate every payment.

Think of it simply: an AI agent understands the intent, finds the product or service, makes the decision, and completes the payment. We call this Uberizing payments, removing the friction between intent, commerce, and payment without replacing the merchant or the consumer.

We believe this can now become a layer of digital commerce. That is the reason why we've changed our name from Infibeam Avenues to Avenues AI.

We are no longer a payments company that does AI. We are building AI-first fintech infrastructure company that started with payments.

Payments give us scale. Rediff gives us consumers and enterprises.

AI gives us intelligence. Credit partnerships gives us access to financial products without balance sheet lending risk.

This is the ecosystem we are building. The first quarter FY27, we actually made meaningful progress across each of these pillars.

We received in-principle approval from Central Bank of UAE for retail payment services, which is a Category 3 license for Avenues. UAE is already one of our strongest international markets.

The license will allow us to broaden our customer reach and product suite and strengthen our long-term international payments strategy. In India, RBI authorized Avenues AI to set up payment system for issuance and operations of prepaid payment instruments.

These approvals further strengthen our regulated payments infrastructure across India and international market. In terms of our asset-light expansion on credit, we've moved from strategy to execution in credit.

We've progressed well in proposed investments of up to 2.5% in Retnafin Capital, which is a RBI-registered NBFC with a very strong SME lending franchise. We also approved a strategic investment of up to 7% in Online PSB Loans, India's largest public sector-backed digital credit platform.

Our model is deliberately asset-light. Avenues AI provides AI payments infrastructure and merchant distribution.

Regulated partners provide the balance sheet and underwriting. This allows us to participate in India's digital credit opportunity without taking lending risk onto our own balance sheet.

As far as trust is concerned on the intelligence side, we are building another important capability: enterprise AI that stays inside the enterprise. Through Phronetic AI, we are developing on-prem AI solutions using small language models, in specific about a billion to 10 billion parameter range.

These models can be deployed, trained, monitored, and retained within client's own infrastructure, with sensitive data remaining inside the organization. Our platforms are built specifically around this requirement.

For enterprises, particularly those handling sensitive data, sovereignty, security, and controls, these model capabilities are becoming increasingly important. We believe this allows us to compete on trust, not simply on model size, and creates a new AI-native revenue opportunity beyond payments.

The board of directors have also taken two significant decisions this quarter. First, Neuromind, which is our fully owned AI-based subsidiary, is being merged into Avenues AI.

This will give us synergies and seamless operations and lead to cost benefits and data consent also. The second we are doing is a reverse split, which is a face value of share, which was ₹1 now, is being increased to ₹10 per share.

Consolidating the face value to ₹10 instead of ₹1 has a significant impact on how shareholders will perceive us, as well as on the liquidity. I will now hand over the call to Vishwas to take you through the payments business.

Vishwas, over to you.

Thank you, Vishal, and good evening, everyone. Vishal has laid down the strategy.

Now let me bring in down to what we are seeing with merchants and consumers. Our strategy is simple: we are not trying to add another payment option, we're trying to become a more deeply embedded in the merchant's workflow.

A good example is the integration of CCAvenue payment gateway with Shiprocket checkout. Shiprocket's D2C and SMB merchants can now access same-day settlement, international payments, no-cost EMI, and payment links across WhatsApp, SMS, Instagram, and email without managing a separate payment relationships.

We're applying the same model across other verticals. Our FormBuilder has onboarded thousands of education institutions and event merchants.

Our BillAvenue platform process millions of utilities, mobile recharges, and bill payment transactions with agent-led adoption driving deeper financial inclusion. Our ResAvenue platform, that is our integrated reservations and payments platform, is scaling across thousands of hotels and connects with systems such as Opera, Micros, Fidelio, property management systems, and leverages our AI-based tools to help them implement smart pricing and optimize occupancy rates.

The principle is consistent: make payments part of the workflow, create more value for the merchant, and the transaction volume follows. Our transaction processing volume for the quarter grew 74% year-on-year to INR 1,479 billion, with continued strength across utility payments, government payments, retail, B2B, and hospitality.

Our performance reflects that: strong execution in our core payments business, completion of a broad and defensible regulatory stack, measured progress in AI-driven commerce and consumer platforms, continued discipline around scale, profitability, and risk management. We remain focused on building trust, compliant, and intelligent payment infrastructure at scale while selectively investing in platforms that extends our long-term growth runway.

On the consumer side, RediffPay will continue to scale as a UPI platform once it has passed the CUG stage. We see RediffPay as a genuine second leg of the payment business, bringing consumer transactions increasingly onto our own payment rails.

Rediff1 is also expanding beyond email and communication into commerce, compliance, and intelligence, making it an operating platform for businesses. On embedded lending, our merchant network is becoming the distribution layer.

As Ratnafin and OPL progress towards closing, we expect merchant financing, checkout financing, and working capital products to become available across the CCAvenue ecosystem, with lending risk remaining with our regulated partners. With that, I hand over to Sunil Bhai for the financial performance.

Over to you, Sunil Bhai.

Thank you, Vishwas sir, and good evening, everyone. Let me start with the key Quarter 1 FY27 numbers.

On a consolidated basis, our gross revenue from operations stood at 2,680 crore, which is up 109% year-on-year. Our net revenue stood at 147 crore, marginally down by 3%.

Our EBITDA, excluding other income, stood at 100 crore, representing 41% increase year-on-year. Our profit after tax for the quarter stood at 85 crore, which is up 45% year-on-year.

This performance builds on the strong full financial year '26 trajectory, where our gross revenue was 8,116 crore, which is up 103%, our net revenue was full year 603 crore, which is up 15%, and PAT was 295 crore, up 25%. Far as our FY27 outlook is concerned, our company expects FY27 consolidated revenue to be in the range of INR 11,000 crore to 13,000 crore, that is growth of around 35% and above, and also expects the FY27 EPS to be in the range of INR 8.75 to 9.5 per share, which is based on the proposed post-corporate action face value of ₹10 per share.

Our cost base remains front-loaded as we invest in AI infrastructure, international expansion, and our new financial services capabilities. We are therefore not building for a short-term margin spike.

We are building for a structurally stronger and more scalable margin profile through FY27 and FY28 as these businesses begin to compound. With this, I will now hand over call for Q&A.

Thank you.

Hi sir. Congrats on a good growth.

Sir, we had filed for this DRHP of Rediff, and I understand it was confidential, last quarter also I had asked this question, but if you can give us, one, the progress on the same. We were more worried about this corporate action that we're taking, whether that could impact our timing of the issue because, one, if you can just remind us of this reason for this corporate action.

Was it so critical? Whether that impacts our timeline for Rediff because I understand the valuation of our company would really be unlocked if Rediff has a separate play of valuation, because the data is also not coming out and in totally.

One, if you can address that.

Sure. This is Vishal here.

Basically, we don't see any impact of the corporate action on the filing of Rediff. They're two separate events.

The corporate action is to mind you just increasing the face value of the share from ₹1 to ₹10, and so that applies to the shareholders of Avenues AI. Anyone who

Sir, I was talking about the merger of that other subsidiary that we are merging with Avenues AI, Phronetic.

Correct. The fully owned subsidiary of the company is merged into the parent, so that has no bearing to the shareholders of Avenues AI.

Basically, it's a 100% subsidiary of Avenues AI, and so the proposed corporate action that we have suggested is to merge the fully owned subsidiary which was undertaking the work of AI models, AI frameworks, and all the opportunities related to that. We believe that if we bring that company directly as part of Avenues AI, then the AI adoption will grow much faster.

We've also recently in our press release mentioned that we plan to build out transaction intelligence scores and many more. With that kind of, you see, in AI, data becomes extremely critical and important, consented data.

What we believe in is that if it becomes part of the main entity, then the growth opportunities, the trajectories are significantly more. We don't believe that this corporate action of merging the subsidiary into parent has any bearing to a proposed filing of Rediff.

Any update there or it's too early to speak on that issue?

It's likely early to directly talk about it, but yeah, I think that we've followed the due process, and you can see some updates which are there on the SEBI website.

Sure, sir. Sir, this PayCentral thing that we are doing, if you can give us update on how's the commercial traction there in terms of merchant onboarding?

A related question there, sir, is this last week was all over place about MDR. I understand two quarter back I had asked you this question, if and when the MDR comes, whether it will be a beneficiary, and you did mention it will be a beneficiary to us.

The only concern that now in the public domain is being discussed is that the large payment providers will get a larger share of the MDR, and hence maybe the market gets consolidated. Given our market share being relatively on a lower side, would it be an opportunity or a threat in that context, sir?

Vishwas, you want to take the MDR first?

Yeah. MDR UPI is significantly growing on our base.

Today, almost 22% of our transactions are on UPI. Any kind of monetization on that UPI will add additional revenues definitely to our platform.

Right now, as we stand, the act has been passed by the Lok Sabha. It still awaits Rajya Sabha, and still awaits President's approval, and then the gazette, and then we will know what kind of pricing and monetization that NPCI and RBI is allowing to be done.

Is know for sure that it's going to be on big merchants and for higher-value transactions, but once the final bits come in, then maybe we'll be able to proper gauge what kind of revenue can be generated. As far as threat is concerned, there's no threat as per se.

There are options like UPI which runs deeply across all kind of payments that happen. There is something for everybody in the ecosystem to gain out of it.

There is no consolidation on the acquiring side. On the issuing side, yes, where a lot of TPAPs have some base, but on the acquiring side, on the online acquiring side, it's quite evenly spread out.

We do have a significant 8% to 10% share of the overall market. Let's see, as and when monetization happen, it will be good only.

It is a endeavor that we ourselves as a company and myself have been working on it to get that monetization bit going for the last couple of years. Finally it is fructifying, let's see.

Sure, sir. Congratulations on that.

Sir, any update on the merchant onboarding and PayCentral, how are we kind of progressing?

It's early days still. In other words, the protocol's new, I think and actually it's growing a little bit faster than in India.

I think the intent protocol is actually working fairly well. I think as far as using AI for merchant onboarding and productivity, I think there are three things that typically you can do with this.

One is you can actually increase productivity significantly, which is AI is actually complementing the human in terms of getting productivity through. I think there we've made massive amounts of progress.

Second is replacing humans. I think it's dystopian, but it's not something you can rule out.

In other words, if you take it further, that particular opportunity can replace a human actually in the loop. Then the third thing is actually AI will end up doing things that you could technically not do in the past.

For example, reconciliation of every single transaction as an audit. I don't think that from that perspective it was possible in the past.

You could do sampling, you could do many more, but now you can. Just giving you an example of what you could do now.

We think that all these three things are happening as we speak. As far as consumers opting to actually transact using agents, that is still in the early phases.

Sure, sir. Sir, last question before I fall back in the queue.

This quarter, we were saying that we are not chasing gross revenue top-line growth, but a net revenue, but unfortunately, that number has not grown, and still we have been able to increase our operating profit, which seems to be coming more from compressing that expense line item. If you can explain what is happening there and what is the trend like?

Should we be focusing more on gross revenue or net revenue? Because the guidance also I think we have given it in terms of gross

You should focus on net revenue, in our opinion, because that is the one which will perhaps give you the best indications in terms of how the company is progressing. There are certain specifics that we'll take up, including the ones that we talked about, which is distribution of credit and so on and so forth, and that should all pour back directly into the net revenue.

We think that that is something that one should definitely take a look at. Gross revenue may fluctuate based on mix and other specifics.

Sure, sir. The operating revenue margins are increasing more from the expense line item, right, sir?

Yes, that's right. Yeah.

Sure. All the best, sir.

Thanks, and all the best.

Hi, am I audible? Hello?

Yes, you are.

Okay.

Yeah.

On the on-prem and the enterprise SLM, private GPT, there's a new unproven line competing against the well-capitalized global players like OpenAI, Anthropic. What is the go-to-market strategy or the target customer and the expected revenue contribution timeline?

We find that SLMs are very good at solving specific problems. A lot of it is actually, if you come to think of it and if you try it out, you must be user of many of the LLMs, if you keep on prompting, prompting, prompting, you will actually get much better results.

In this particular instance, what you do is you take data which is specific to a particular company, you vectorize it, you build a knowledge graph on top of it, SLMs, and then some application layers. We find that enterprises where data is critical, financial institutions, critical operations in some ways, they would all want this kind of a setup, which is SLM-driven.

I think the opportunity is significantly large. It is still in the early phases.

I think it actually reduces the token cost also significantly, and what we realize is that many of these companies, they can solve a lot of problems building workflows, you don't even have to use tokens and then perhaps optimizing it using SLMs, and that becomes specific to that particular setup. We think that how do we productize it is the bigger opportunity.

If we're able to give some kind of a DTX and something which consumers and enterprises can start utilizing, it becomes valuable. In terms of impact to our business is concerned, I think it's about anywhere from 9 to 18 months out, where you'll start seeing some good impact, we believe.

Right. What is the exposure on the token which we use via the LLMs?

What would be a risk on the token prices, and how has been the trend of the token prices right now for us?

Tokens slightly inflationary, you know that. In other words, there's lots of optimizations that one can do in that area, in that space.

Then there's new stuff happening on a daily basis. I think for us, typically infrastructure tokens and so on and so forth, for our internal use, of course we spend, but for the ones that we give to our clients, clients would actually end up paying that.

We pass on the cost, it's a pass-through for us, typically speaking. If you think about SLMs and if you have this kind of a fabric, then token cost falls by about one-tenth of what you would typically see because the data is actually somewhat air-gapped, it's not going out, it's within the premises.

The utilization and so on and so forth is significantly improved with this particular setup. The way we see the opportunity is that for critical infrastructure, for financial data, for many others, the utilization of LLM will be limited because of the data security concerns.

It will move towards the SLM framework, and that is what most companies would end up working on. That is the opportunity that we believe will perhaps work as well, but if we can actually productize it, it's even bigger.

Right. About RediffPay, now still pre-launch, and the UAE and RBI licenses only newly received, how much of the FY27 growth guidance is already assumed?

The contribution from these unlaunched or newly services versus being a pure core CCAvenue-driven?

I think we've not assumed much from RediffPay because it's a UPI payment option. For FY27 guidance, we have not assumed the meaningful contribution from that, if it makes sense to you.

Right. As the previous participant said that we are planning to list Rediff as a separate entity, what has been the revenues and will we list Rediff as a AI provider or we will list it as a more of RediffPay and very similar to the Paytms of the world?

Rediff has three large opportunities: one is Rediff1, which is the enterprise side of the business, which has emails, commerce, in some ways, CRM, HRMS, ERP, think of it as something similar to Zoho One in some ways, but I think that's one opportunity that Rediff will go after; second is RediffPay, which is what you mentioned, which is more like the UPI payment with fintech opportunities, wealth management, and many others; and the third opportunity is register of this content and Rediff TV, which is not the linear TV that you double, streaming with a lot of content. We think that it is not going to be the legacy-only business, it will be AI-enabled new version of what we think consumers and business will connecting to.

How is it going to be different from, sorry, I'm sorry you wanted to add, but how is it going to be different to different to our existing company?

That's consumer-facing payments. Acquiring is in CCAvenue.

Avenues AI will focus on the B2C payments, consumers paying to businesses, and Rediff is going to focus on the consumer side of payments. You see, payments is two different endeavor elements.

Today, for example, a consumer does not download a CCAvenue app and utilize the app. They will go to the merchant where they'll find a payment options and they will pay using CCAvenue.

We are on the business side, in the acquiring side, we are not on the consumer side. Rediff is on the consumer side.

Right. What about the AI?

You've excellently explained how the payment module will be from B2C and with Avenues AI B2B. What about the AI part of our company?

Will that entirely go to Rediff?

AI is completely as part of Avenues AI. Phronetic is being merged into Avenues AI, which is Neuromind as a subsidiary, which is a 100% subsidiary, is merged into Avenues AI now.

The entire AI vertical of people and everyone else will be part of Avenues AI. Great,

great. Thank you so much, guys, and all the very best, sir.

Hello, sir. Am I audible?

Yes.

Hello. Yeah.

Sir, a couple of things I had. EBITDA margins have expanded sharply to around 68% of net revenue versus 47% a year ago.

What would be the sustainable margins post all the investments into AI and the platforms has been done?

If you look at guidance for the year, this year, if you look at, the press release and our guidance, we're projecting, revenues to come in between 11 to 13,000 crores, and earnings per share from ₹8.75 to 9.50. That is net of the capital that has been allocated to be spending on AI and platforms.

I think that, we've adopted the approach of ensuring that we are not chasing the short-term profitability, we're looking at the long-term impact, but we're going to track and monitor what happens in the short term very sharply. We have a slightly disciplined approach, and we've put certain guardrails.

We would definitely be, increasing our intent to forward invest in AI, and that will continue on. I think as far as the EBITDA for the quarter is concerned and next quarters, in the full year, we've we've given the guidance, you can actually be able to, look at whatever EBITDA margins has been compared to PAT and come up with the EBITDA versions.

Okay. Apart from this, as you have mentioned, the gross revenue target for the entire financial year here it is an increase around 35% to 60% from 8,000 crores approximately to 11,000 to 13,000 crores, okay.

The EPS is flat, the guidance in the EPS part is flat. Considering the PAT was around 57%, the EPS should also have grown by around 20% or so.

Why the EPS is flat then in the guidance if you can tell?

Yeah. One thing that we think we want to continue on is and we've got a philosophy and it's pretty simple, that we want to protect our earnings of the core business, and we will want to forward invest incremental cash generation to build the business of tomorrow, which is actually in the AI and other areas.

We expect the core business to remain strong and profitable and generate increasing operating accruals. We believe that beyond a certain amount, the incremental capacity will be selectively reinvested into AI, transaction intelligence, and other high-conviction growth opportunities that we have.

If you think about our philosophy and our approach, the thing is that we want to grow the core, we want to generate incremental accruals, we want to reinvest selectively in AI, we want to build out on new revenue streams, and then we want to compound earnings over time. You're right.

I think that, we believe that, additional accruals that come in as part of our build-out will be reinvested back, and, we want to think about see, if you think about our ambition from '27 to '29, it's not simply about maximizing, earnings, it is to emerge at the end of the period with both a very strong earnings base and a significantly large AI-led business. You can expect that we'll in will invest that incremental accruals back into the business of where we have very high conviction.

It's a conscious conscious decision that we want to compound today's profitability while investing in the business that can drive tomorrow's growth.

Sure. Got it.

Apart from this, I had one more query. The net revenue has declined around 3% year-on-year and 1% quarter-on-quarter.

Can you give us some reasons and flavor about what happened to the net revenue specifically? It's

typically first quarter is a slightly low quarter. Second, third quarter is slightly better because of festival seasons and others.

We believe that as more and more transactions happen through our platform, we have slightly compression as far as our margins are concerned, if you look at our take rates, they have compressed slightly and that has impacted our net revenue. We believe as we build out other opportunities, which is somewhat credit-based distribution, many others, that we should be able to pick up.

We remain slightly appropriately conservative in terms of how we think through this, but yeah, you're right. I think it's a combination of payments being a competitive business, second, our aspiration to grow payments and increase the core profitability and pull in volumes, and third is we think that with that, we can build out a lot of other revenue streams, which potentially will offset and help us increase our margins in the medium to long term.

Vishal Bhai, can I comment? Vishal Bhai, just come in.

Gauri, what I would also like to add one thing. If you notice, though the net revenue may be slightly gone down, the EBITDA has gone up by 41% and the EBITDA percentages have gone, because 47% in Y-o-Y in Q1 FY26 is now 68%.

Concentration has been on improving the absolute profitability and the margins therein, the gross revenues and the take rate, not necessarily on the net revenue. That is a positive part of the entire results.

That's right. The only issue in this was that there's a lot of investment into AI optimization and all.

That's why the EBITDA margins and all we're not able to clearly figure out what is the ideal sustainable EBITDA margins going forward putting all the AI investment.

The guardrail that you can establish is about 50%, that's the guardrail, if you ask me. You always want to have guardrails, which is we never want to go below that certain amount.

Rather than going into how much EBITDA we can improve and so on and so forth, we want to set up certain guardrails that enable us to ensure that we continue reinvesting into our future and maintain certain profitability in our core.

Right. Sure.

Sir,

It's not a target, it's just a guardrail, so.

Sure. Sir, just a last question.

The e-commerce platform business was flat last quarter, has started slightly higher on the high margin revenue. When will the promised platform AI work would show up in the growth number and what would be the growth of this platform business?

We expect that we're investing quite a bit in that area and some meaningful results should start showing up in Q3 time frame. You can expect that maybe some movement will start in the Q3, Q4 time frame for us in that space.

Sure.

Sure. Thank you so much, sir.

Thank you. All the best.

Hello, am I audible, ma'am?

Yes.

Am I audible, sir? Yeah.

Thank you. Sir, I wanted to reflect on what kind of updates that we have on Rediff's IPO timeline, sir?

One. Second on what kind of AI investments or AI infrastructure are we building for next, like you have guided for 2027 27-29, you are focusing on the more on expansion of our business.

What kind of AI infrastructure are we building upon, sir? What kind of returns on net basis we feel in EBITDA and PAT margins are we looking forward?

I'll take the second question. I think as far as the AI part is concerned, AI is a very large topic.

We want to work only and keep on keeping our heads straight in terms of not just investing in AI, but we want to actually make sure that there is a investment and harvesting cycle as well. Our thesis in this is that there is this whole infrastructure-related AI investments, which is not what we want to pursue as far as data centers and so on and so forth is concerned.

It's high, huge amounts of capex and returns over a period of time, so that is not what the company wants to pursue at the moment. We may invest selectively in smaller capacities, but not the large ones.

That's one. As far as we've recently in our release mentioned that we want to build out transaction intelligence score, and think of it as, in some ways, alternative risk score.

It's not a replacement to any of this course, but it's actually more about We start with transactions, we have universe of transactions, that is our biggest advantage. We have frequency, transaction value, merchant category, tickets, repeat purchase, refunds, chargebacks, you name it.

We want to be able to evaluate using AI, how does this business behave financially, or how does this person behave financially. For that, you need to create this whole financial behavior graph, which is build out graph for person, device, bank accounts, merchant transactions, refunds, and the whole payment behavior.

Once you do that, you can build out certain liability scores. I think these are the ones which we want to pursue, which is slightly more applied in nature.

You can think of it as like a SLM, a small language model. Once you apply them, then there is a monetization, because if it's meaningful and it gives you good insights in terms of what how the merchant or the individual performs, then perhaps there's a score and that there could also be an identity and a fraud score associated with such things, which is meaningful for us.

That gives you some kind of an indication on how we can monetize on it. Then consented external financial data that can potentially be part of the system with training datasets.

We are building out all this predictive models. You have logistics regression, with gradient boosting, with neural models and graphs and LLMs enhanced, with giving you some indication of what is the probability of certain activities.

We think that these kinds of things will be highly interesting and we have a huge edge over it, because none of the LLMs can actually replicate what we can do. They don't have the data, and they will never have the data as well.

We think that that becomes a differentiator in our opinion on how we should differentiate, because and then if you build out guardrails and explanation layers and create some kind of a version of what it would look like, then it becomes very meaningful. I'm just giving you a perspective of how we think through AI, not necessarily what we'll not do is we'll not invest into hundreds of megawatts of data center infrastructure.

We may selectively go and invest into smaller data center capabilities. Number two, we will work on application layers, SLMs, which potentially enable us to assimilate all this information and build out.

That's the thesis that we carry. I hope this helps you and answers your question.

Okay.

If

you look at Lok Sabha passing of the UPI MDR, that it opens the road to monetization of high merchant payment structure combined with Rediff consumer ecosystem and financial licensing by strategic engines. What benefits are we going to get from this kind of setting?

Sorry, I was not able to hear the question properly.

I'll just repeat. What UPI MDR bill is one of the points of discussion in the Lok Sabha.

What kind of results or benefits are we expecting from such kind of enactment?

See, I'll tell you, I think it's still early days like Vishwas mentioned. There are certain guidelines that are expected to come in.

Consumer-to-consumer, there is no MDR. To businesses, there will be an MDR.

It's yet to be ascertained what it will end up looking like. I think that there is a benefit for both CCAvenue and RediffPay if that materializes.

The extent to which it will benefit, we don't know. It is also based on a competitive scenario.

In other words, there are many large incumbents, many who can actually subsidize payments. We'll have to see what is the competitive landscape, what does the regulation end up looking like.

One thing we know is that, yeah, it will be meaningfully positive. It's not going to continue free, yeah.

Okay. Sir, in the last quarter, we had mentioned that we are targeting some ₹250 to ₹500 crores of PAT.

What kind of timeline are we looking for that kind of estimation? Second, sir, from the promoter worth also, we have not seen a substantial holding and there is no sign of any increment.

Can you just give us a timeline or that sort when promoters are willing to participate in the run or participate in the equity distribution, sir?

Sure. See, we are long-term investors, so that much I can tell you.

I think whatever is material information out there is what is already out there in the open. We are long-term as far as the promoters are concerned.

In terms of the other question on PAT, I think one decision that you can count on us is that we are not going to look at just a spike in one-time setup. Theoretically, it's a build-out.

Our investments in AI and some of the forward-looking things, we would rather invest in that and build out the long-term sustainable vision for the company. We will not be looking at short-term spike in profitability, but we'd rather keep on investing.

It's a conscious capital allocation decision. We want to focus on EPS and make sure that there's guardrails, and we want to keep on investing in our future.

Three years ago, we had made the call that we want to reach to a billion dollars in revenues. We made that call somewhere in '23, '24, and I think we are there, and we said in three years we'll reach $1 billion in revenue, we've been fortunate to get there.

I think now we believe that we want to continue building out and investing into the future. If we don't, then I think we won't have a long term.

We think that if we keep that disciplined approach to capital allocation and put guardrails, then we can build out something very meaningful and maximize the three-year earnings. I think not the immediate quarter and the immediate year earnings.

We have given guidance of EPS, which you could follow for this year. We want to look at what the company should look like three years from now, and that is what we want to keep on investing into.

Yes, sir. A last question, what are the good things which you had planned out and have been executed or have happened during the previous year '24-'25, '25-'26?

What are some things that you had planned out which couldn't be done? Can you just mention something which was planned out and which went well and something which was planned out and didn't go the way you wanted it to be?

Covering our key business decisions and business performance.

I think we could have expanded internationally more last year. I think given the macroeconomics, it's had an impact.

I think that we would have liked to be more aggressive in terms of our international growth, something that we'd like to take up this year. That's one.

I think we believe we can do a lot more in the AI setup. We could have made certain larger investments to get to market and do things faster.

We think that we can still continue doing that. I think lots of things are changing in that, but again, we think we could have done that better.

Third is we should have worked more on ensuring that we can keep on building out the net take rates. There the incremental revenue from other activities that we've picked up should somewhat complement what we are doing in terms of going after growth.

There's a slight latency because a lot of these investments are up front. These are the things we think we could have improved.

What we did well, I think, we've done fairly well in growth and actual build-out of some of the Rediff systems and activities and being able to get the right folks to build out, and also incremental productivity that we get using AI. I think our disciplined approach is, I think, what worked for us.

Okay. Sir, the last one, what kind of our customer structure, sir, meaning our top five clients contribute how much for the revenue and are we planning to increase it or is it getting contracted and distributed more on our other remaining outparts of the business?

What is our concentration and what kind of diversification or what kind of strategy are we looking towards our top five or top 10 contributors for revenue?

You won't see CCAvenue on Amazon or some of the large merchants. If you transact online, you see it in airlines and a few others, but not on the likes of quick commerce and Amazon, others.

We think that going after the larger client base should be our strategy. We want to go as horizontal as possible because when you start thinking about even credit, credit scores, and many others, and search alternative on a thin-file merchants, how do you enable?

These transactions can give you a lot more information about them than any other thing. We think that going after a larger base should be our approach as we move forward.

I think when we grow internationally, we want to go after large clients. Our domestic approach is slightly different compared to international.

In international, because the size and scale of the digital industry is so large, if you look at US, most of the transactions are digital in nature. I think there we would like to work on those larger clients and larger opportunities.

I think in India also there will always be occasional equals clients that come our way, which is where if we are able to add value and we are able to grow, then I think we'll certainly, but India is super competitive, as you can tell. We think that this thing will continue on.

If you look at the merchant profile, we've actually mentioned several of the marquee clients in one of the slides in our presentation, you can refer to that as well.

Okay. That is from my side, sir.

Thank you and all the best for future.

Thank you.

Hi. Just one question.

How will we be different from Apple Pay or PayPal in the US?

I'll take that. Yeah.

Apple Pay is more on the customer side on the phone, where they tokenize their card and they use to, pay the pay the merchant. It's just a enabling enabling form factor for doing a transaction, and where their revenues will come is from the issuing side of the bank who has issued the cards.

We are on the acquiring side as far as CCAvenue is concerned, where we onboard merchants and other things. Like if you have seen in UAE and in India also, we have gone live with Apple Pay, where we enable the the the integration and the platform and the systems to the merchant to enable them to collect collect their their customers to pay through their Apple Pay.

Apple Pay is on the issuing side, which is just a form factor to enable customers to pay, while we are on the acquiring side. We, as hundreds of different options and different form factor, we do allow Apple Pay, Samsung Pay in our systems in India and UAE to accept payments on us on our platform.

Is clear?

Got it. Another question is on the war side, how has the war impacted our revenues and what percentage of our growth will come from increase in the currency appreciation, and what percentage otherwise?

See, I think from a macroeconomic perspective, potentially some growth in the Middle East would have been impacted as a result of the macroeconomic impact should have been there. We don't see too much, though.

It is there for sure, but we think that should come back. People are going to pay utility bills and some travel would be impacted.

Other than that, there is a local industry, local commerce, local people, so that should continue on. Anyone who has to pay rent, they have to pay rent, and so on and so forth.

Internationally, yeah, we operate UAE, Saudi, they're two large areas that we think we can focus on, and that would definitely have an impact. Again, like I said, we think it's short term, it is not long term, so that will have some impact.

As far as the currency and so on and so forth is concerned, there's no material impact as much, we don't see that as a material impact yet. We do believe, because see, I think that we do have aspirations to build out US this year, and that's where we will see maybe that question becomes slightly more relevant.

Got it, sir. Thank you for the opportunity.

Congratulations on the good set of numbers.

Thanks, all, for joining the call, and looking forward to keeping you updated on our progress. Thanks again.

Thank you, all.

Thank you.