AvenuesAI margin slips as costs outpace revenue; shares fall 3.91%
Higher tax and a large other-income contribution weakened profit quality, while management reiterated FY27 revenue guidance of INR 110,000–130,000 million.
Filed 06 Nov 2026, 14:05 IST · AvenuesAI Ltd (CCAVENUE)
Key takeaways
- Consolidated operating margin narrowed by 0.30 percentage points sequentially to 3.43% as expenses grew 7.75%, faster than revenue growth of 7.42%.
- Net profit fell 15.42% sequentially after the tax rate rose 11.61 percentage points to 13.79%, while other income contributed 35.16% of pre-tax profit.
- The stock fell 3.91% on the results date, while the company’s operating margin was 51.00 percentage points below the 54.43% median for 104 reporting Financial Services peers.
Price around the results
Revenue grew, but operating profit slipped
This consolidated quarter showed sequential revenue growth of 7.42%, but operating profit declined 1.15%. Expenses rose 7.75%, outpacing revenue and narrowing operating margin by 0.30 percentage points to 3.43%. The company’s margin was 51.00 percentage points below the 54.43% median among 104 Financial Services peers that had reported.
Tax and other income changed profit quality
The tax rate increased by 11.61 percentage points to 13.79%, contributing to the 15.42% sequential decline in net profit. Other income represented 35.16% of pre-tax profit, so reported earnings had a material contribution from non-operating income. Interest expense also rose 7.50% sequentially.
New payment products support the expansion narrative
Management said CCAvenue launched its CommerceAI suite covering AI Forms, AI Invoicing and AI-powered Integration, and integrated Amazon Pay Balance and Visa Payment Passkey. The company said it will power YES BANK’s YES Smart Pay receivables platform and has partnered with Shiprocket on checkout services. Management also said it is targeting a 12%–15% international payments net revenue contribution by FY28 and plans to expand into multiple countries over the next three to five years.
Shares fell on the results date
The stock declined 3.91% on 6 November, with the session’s volume at 0.37 times the reference level. Its relative return was -5.92%, while the opening gap was -0.20%. The reaction came despite management’s FY27 guidance of INR 110,000–130,000 million for gross revenue and INR 8.75–9.50 for earnings per share.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹2,879 cr | ₹2,680 cr | +7.42% |
| Other income | ₹29 cr | ₹30 cr | -3.59% |
| Expenses | ₹2,780 cr | ₹2,580 cr | +7.75% |
| Operating profit | ₹99 cr | ₹100 cr | -1.15% |
| Operating margin (%) | 3.43% | 3.73% | — |
| Interest | ₹11 cr | ₹10 cr | +7.50% |
| Depreciation | ₹34 cr | ₹34 cr | +1.46% |
| Profit before tax | ₹83 cr | ₹87 cr | -4.03% |
| Tax | ₹11 cr | ₹2 cr | +506.88% |
| Net profit | ₹72 cr | ₹85 cr | -15.42% |
| EPS (₹) | ₹2.06 | ₹0.24 | +758.33% |
Operating margin of 3.43% compares with a Financial Services sector median of 54.43% across 104 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -3.91% | -5.92% |
Volume on the results session was 0.37× its 20-day average.
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 110,000–130,000 million.
- FY27 earnings per share guidance is INR 8.75–9.50.
- The company is targeting international payments net revenue contribution of 12–15% by FY28.
Expansion
- The company plans to expand into multiple countries over the next three to five years.
New initiatives
- CCAvenue launched its AI Suite under CommerceAI, covering AI Forms, AI Invoicing and AI-powered Integration.
- CCAvenue integrated Amazon Pay Balance across its merchant network to improve payment success and reduce checkout abandonment.
- CCAvenue integrated Visa Payment Passkey for authentication using a fingerprint, Face ID or device PIN.
- CCAvenue will power YES BANK’s YES Smart Pay receivables platform with its gateway.
- CCAvenue partnered with Shiprocket to enable faster checkout through Shiprocket’s AI-powered checkout.
Competition
- The company says it has about 8% share of India’s digital payments market.
What to watch
- Whether operating margin recovers from 3.43% after expenses grew 7.75% sequentially.
- Whether the tax rate remains near 13.79% after rising 11.61 percentage points sequentially.
- Progress against management’s stated targets of INR 110,000–130,000 million in FY27 gross revenue and 12%–15% international payments net revenue contribution by FY28.