AvenuesAI's 3.73% margin ranks last among 60 sector peers
Other income of Rs 30.33 cr and a 2.18% tax rate supported Rs 84.77 cr net profit; management gave FY27 EPS guidance of 8.75-9.50.
Filed 11 Aug 2026, 14:16 IST · AvenuesAI Ltd (CCAVENUE)
Key takeaways
- AvenuesAI's consolidated operating margin was 3.73%, leaving Rs 100.03 cr of operating profit on Rs 2,680.4 cr of revenue.
- Other income of Rs 30.33 cr and a 2.18% tax rate supported consolidated net profit of Rs 84.77 cr.
- Its 3.73% operating margin was 58.95 percentage points below the 62.68% median for 60 reported Financial Services peers.
Price around the results
Thin operating margin defines Q1FY27
AvenuesAI reported consolidated revenue of Rs 2,680.4 cr and operating profit of Rs 100.03 cr, implying that the business retained only a small operating surplus from its revenue base. Net profit was Rs 84.77 cr, with basic EPS at Rs 0.24. There is no sequential or year-on-year comparison in the reported results, so the quarter's direction cannot be established from these figures alone.
Other income and low tax rate lifted reported profit
Expenses of Rs 2,580.37 cr absorbed most of revenue, leaving operating margin at 3.73%. Other income of Rs 30.33 cr was a sizeable contributor to profit before tax of Rs 86.66 cr, so reported earnings were not generated entirely by operations. The 2.18% tax rate also supported net profit.
Margin trails the Financial Services peer set
AvenuesAI's 3.73% operating margin was 58.95 percentage points below the 62.68% median among 60 Financial Services peers that had reported the same quarter. It ranked 1 from the bottom in that comparison, making the operating margin the clearest weakness relative to the sector.
Management outlined payments and AI expansion
Management said FY27 EPS guidance is 8.75-9.50 and gave FY27 gross revenue guidance of INR 1,10000–1,30000 million. The company said Avenues World FZ LLC received in-principle approval for a UAE Category III retail payment services licence, while AvenuesAI received RBI authorisation for a prepaid payment instrument system in India. Management also said PhroneticAI is developing on-premise Small Language Model solutions and that the company is targeting a 12–15% international contribution to payments net revenue by FY28.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹2,680 cr |
| Other income | ₹30 cr |
| Expenses | ₹2,580 cr |
| Operating profit | ₹100 cr |
| Operating margin (%) | 3.73% |
| Interest | ₹10 cr |
| Depreciation | ₹34 cr |
| Profit before tax | ₹87 cr |
| Tax | ₹2 cr |
| Net profit | ₹85 cr |
| EPS (₹) | ₹0.24 |
Operating margin of 3.73% compares with a Financial Services sector median of 62.68% across 60 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- FY27 gross revenue guidance is INR 1,10000–1,30000 million.
- FY27 earnings-per-share guidance is 8.75–9.50.
- The company is targeting 12–15% international contribution to payments net revenue by FY28.
Expansion
- Avenues World FZ LLC received in-principle CBUAE approval for a UAE retail payment services Category III license.
- AvenuesAI received RBI authorisation to set up a prepaid payment instrument system in India.
- AvenuesAI plans to acquire up to a 2.5% stake in Ratnaafin Capital for its liability-light lending strategy.
- AvenuesAI approved a strategic investment to acquire a 7% minority stake in Online PSB Loans.
New initiatives
- PhroneticAI is developing fully on-premise AI solutions using Small Language Models for deployment within clients’ infrastructure.
Competition
- AvenuesAI states that it has approximately 8% share of India’s digital payments market.
- AvenuesAI describes its pan-India presence as among the top three.
What to watch
- Whether operating margin improves from 3.73% in the next reported quarter.
- Whether other income remains a sizeable contributor against profit before tax of Rs 86.66 cr.
- Progress against management's FY27 EPS guidance of 8.75-9.50.