AvenuesAI Ltd Management Discussions

1. Overview

FY26 was a year of structural change for your Company. It was the year in which the Company changed its name, transferred its platform business to its subsidiary, widened its regulated perimeter across four separate authorisations, raised fresh capital through a rights issue and delivered its largest year on record on revenue and adjusted profit after tax, alongside significant expansion in payment transaction scale.

Consolidated revenue from operations was INR 81,158 million. Net revenue (management measure) increased 15 per cent to INR 6,031 million, adjusted EBITDA (management measure) increased 24 per cent to INR 3,873 million, and adjusted profit after tax (management measure) increased 58 per cent to INR 3,320 million. This progression reflects operating leverage and earnings conversion. Revenue from operations and the adjusted earnings measures finished above the upper end of the revised guidance range, while net revenue (management measure) finished within it.

Behind the numbers, the Company completed a repositioning that had been under construction for several years. It re architected itself from a diversified multi platform business into a focused enterprise with two engines: AI driven fintech infrastructure under the CCAvenue brand, and AI powered consumer and merchant platforms under Rediff. On 30 January 2026 the rebranding from Infibeam Avenues Limited to AvenuesAI Limited was completed, and with effect from 3 February 2026 the Companys equity shares began trading on the National Stock Exchange of India Limited under the symbol CCAVENUE. The BSE Limited scrip code 539807 remains unchanged.

This discussion should be read together with the audited standalone and consolidated financial statements for the year ended 31 March 2026 and the notes to those statements, which form part of this Annual Report.

2.1 The Indian economy in FY26

India recorded its strongest year of the current cycle in FY26. Real gross domestic product grew 7.7 per cent, against 7.1 per cent in FY25, and real gross value added grew 7.9 per cent against 7.3 per cent. Nominal gross domestic product grew 8.9 per cent to INR 346.36 lakh crore. In the fourth quarter, real gross domestic product grew 7.8 per cent.

Chart 1: India recorded real gross domestic product growth of 7.7 per cent in FY26 against 7.1 per cent in FY25, and real gross value added growth of 7.9 per cent against 7.3 per cent. Source: Ministry of Statistics and Programme Implementation, Provisional Estimates, 5 June 2026.

Growth was consumption led, which is the aggregate that matters most to a payments business. Private final consumption expenditure grew 7.7 per cent in real terms. Gross fixed capital formation grew 8.2 per cent. Among sectors, trade, hotels, transport and communication grew 11.0 per cent, manufacturing 10.7 per cent and financial, real estate and professional services 10.4 per cent, all of which are core transaction generating categories for the Company.

The year was also the most disinflationary in the current consumer price index series. Retail inflation averaged 1.7 per cent over April to December of FY26 against 4.6 per cent in FY25, touching a record low of 0.25 per cent in October 2025 before reaccelerating to 3.40 per cent by March 2026. The Reserve Bank of India used that space to ease, cutting the repo rate by 100 basis points during FY26 to 5.25 per cent and reducing the cash reserve ratio by 100 basis points to 3.0 per cent in four tranches from September 2025, releasing durable liquidity of approximately INR 2.5 lakh crore.

The single largest consumption policy event of the year landed immediately before the festive quarter. The 56th GST Council meeting collapsed the four slab structure into two principal rates of 5 per cent and 18 per cent with effect from 22 September 2025. Rate reductions covered consumer durables, small cars and two wheelers, packaged foods, personal care products and hotel stays up to INR 7,500 a day, and life and health insurance premiums were exempted. The first leg of the festive e commerce season, from 22 September to 2 October 2025, delivered gross merchandise value of INR 60,000 crore to 62,000 crore, growing 20 to 22 per cent against 12 per cent in the prior year, with tier two and smaller cities supplying 60 to 65 per cent of shoppers.

The final quarter of the year carried a shock

of a different kind. The rupee fell 9.88 per cent against the United States dollar over FY26, its steepest annual decline in fourteen years, closing at 94.78 to the dollar, on foreign fund outflows, elevated crude prices and geopolitical tension in West Asia. Foreign portfolio investors withdrew over INR 52,700 crore from Indian equities in March 2026. In April 2026 the Reserve Bank cut its FY27 growth projection to 6.9 per cent. Your Company notes that currency depreciation of this order mechanically inflates the rupee value of international revenue, and any assessment of international progress should distinguish translation effect from organic growth.

2.2 The digital economy base

Total telephone subscribers reached 1,306.14 million as at 31 December 2025 and internet subscribers 1,028.61 million, of which 1,007.35 million were broadband. Rural teledensity stood at 59.63 per cent against urban teledensity of 148.92 per cent, which remains the structural argument for expansion into tier two and tier three markets. Over 7.83 crore enterprises were registered on the Udyam Registration Portal and Udyam Assist Platform as at 28 February 2026, against 6.19 crore at the end of FY25, being approximately 1.64 crore net additions during the year. That pool is the addressable base for merchant acquiring.

3.1 The Indian digital payments market

FY26 saw Indian digital payments continue to expand at scale, while the rate of growth moderated across several measures.

Total digital payments reached approximately 281.7 billion transactions worth INR 3,251.0 lakh crore in FY26, with volume up 26.8 per cent and value up 13.2 per cent. Digital payments accounted for 99.8 per cent of total non cash transaction volume. The Reserve Bank of India Digital Payments Index stood at 516.76 as at September 2025, growing approximately 11 per cent year on year in an eleventh consecutive period of growth. During FY26 the Reserve Bank granted authorisation to 23 non bank payment aggregators, four non bank prepaid payment instrument issuers and one interoperable mobile and net banking operator.

Chart 3: Year on year growth in FY26 across the principal measures of Indian digital payments. Volume grew faster than value on every rail, which is the arithmetic behind falling average ticket sizes and compressed per transaction economics. Sources: Reserve Bank of India Annual Report 2025-26; Press Information Bureau; Reserve Bank of India card data.

Unified Payments Interface. UPI processed approximately 241.62 billion transactions worth INR 314.23 lakh crore in FY26, against approximately 185.87 billion transactions worth INR 260.56 lakh crore in FY25. Volume grew 30.0 per cent and value 20.6 per cent. UPI crossed 200 billion transactions in a single year for the first time and accounted for nearly 86 per cent of total retail payment transactions. Volume growth, however, decelerated from 42 per cent in FY25 to 30 per cent in FY26. As at March 2026, 703 banks were live on UPI and the platform accounted for approximately 49 per cent of global real time payment transaction volume, operating in eight countries.

Chart 4: Unified Payments Interface

transaction volume and the rate of volume growth, FY25 and FY26. Sources: Press Information Bureau, 20 July 2026; Reserve Bank of India Annual Report 2025-26.

The composition of that volume is the fact that explains take rates across the industry. Merchant payments were 63 per cent of UPI volume but only 29 per cent of value in FY26, and 86 per cent of merchant transactions were below INR 500. Average ticket size fell to INR

I, 313 in the half year to December 2025 from INR 1,437 in calendar 2024. With effect from 15 September 2025 the National Payments Corporation of India raised per transaction merchant limits to INR 5 lakh in capital markets, insurance, travel, loan repayment, foreign exchange and digital account opening, and to INR 2 lakh in jewellery. That change is accretive to transaction processing value and dilutive to net take rate, because UPI merchant transactions carry a zero merchant discount rate while cards and net banking are monetisable.

Cards. Card economics moved in opposite directions. Total credit card spends reached INR 23.62 trillion in FY26 against INR 21.09 trillion in FY25, up 11.98 per cent, with cards outstanding rising to 118.63 million from 109.88 million. Over 60 per cent of credit card spend by value is online, which is directly relevant to an online acquirer. Debit card volumes, by contrast, declined approximately 23 per cent in calendar 2025 as UPI displaced the debit card at the point of sale, with issuance broadly flat. RuPay recorded 3,289.41 crore transactions in FY26.

Bill payments. The Bharat Bill Payment System rail, on which your Company operates BillAvenue, grew faster than the wider market. Bharat BillPay transactions in calendar 2025 numbered 3.05 billion, up 40 per cent, with value of INR 14.84 trillion, up 93 per cent. Bharat Connect for Business, the business to business invoice presentment and collection rail, continued to scale through integrations with accounting and enterprise resource planning platforms. Independent projections place Bharat Connect on a path from 2.5 billion transactions and INR 10.1 trillion in FY25 to 12.2 billion transactions and INR 51.8 trillion by FY30, the fastest projected growth of any Indian payment rail.

Offline acceptance. India had approximately

II. 48 million point of sale terminals at the end

of calendar 2025 and 731.38 million UPI QR codes, up 15 per cent. Against a population of approximately 1,400 million and more than 60 million small merchants, acceptance infrastructure remains thin, which is the structural argument for low cost acceptance devices and software point of sale solutions.

Prepaid instruments. Prepaid payment instruments recorded 98,699 lakh transactions in FY26, running at over INR 28,500 crore a month in value by March 2026, at an average ticket size of INR 326. Growth in this segment is high frequency and low value.

E commerce. Indias online retail gross merchandise value reached approximately US$ 80 billion in FY26, growing 21 per cent year on year, with 320 million to 340 million annual transacting shoppers. Quick commerce and value commerce together grew from approximately 2 per cent of online retail gross merchandise value in FY21 to approximately 30 per cent in FY26.

3.2 The regulatory environment

FY26 brought significant regulatory changes for Indian payment aggregators. The regulatory perimeter widened, compliance standards increased and the authentication framework was revised.

The Payment Aggregator Directions, 2025.

On 15 September 2025 the Reserve Bank issued a consolidated Master Direction replacing the March 2020 guidelines, the March 2021 clarifications and the October 2023 cross border circular. For the first time a single instrument covers online aggregation, physical or proximity aggregation and cross border aggregation. Physical aggregation was brought under direct Reserve Bank authorisation for the first time, with entities carrying on only that business required to apply by 31 December 2025 or wind down by 28 February 2026. Net worth requirements were set at INR 15 crore at application, rising to INR 25 crore by the end of the third financial year. Merchant due diligence must now be conducted under the Reserve Bank Master Direction on Know Your Customer, 2016, with a Central KYC Records Registry search, applying to all merchants onboarded from 1 January 2026 and to the legacy book by 15 September 2026. Escrow, settlement and third party payout provisions were revised, and the core portion of escrow may now earn interest.

The changes have three principal industry implications. Offline aggregation became a licensed activity, strengthening the position of entities holding authorisation. Merchant onboarding cost and friction increased as customer due diligence requirements expanded. Escrow, settlement and payout economics also changed across the sector.

Authentication. On 25 September 2025 the Reserve Bank issued Directions replacing the prescriptive one time password regime with a principle based, technology neutral, risk based framework, effective 1 April 2026. All domestic digital payment transactions must be authenticated by at least two distinct factors, with at least one dynamically created for card not present transactions, and issuers must run fraud risk management enabling risk based step up authentication. The framework may reduce checkout friction while increasing the importance of fraud and risk decisioning capabilities for acquirers. FY26 was a preparation and build year across the industry; the compliance cost falls into FY27.

Digital lending and co lending. The Digital Lending Directions, 2025, issued 8 May 2025, and the Co Lending Arrangements Directions, 2025, issued 6 August 2025 and effective 1 January 2026, together define the outer boundary of an asset light lending orchestration model with unusual precision. A lending service provider may source, assist underwriting, service and collect, but disbursals must go directly to the borrower and repayments directly to the lender. Default loss guarantees are capped at 5 per cent of the covered portfolio, must be fully collateralised and carry no capital relief for the lender. A multi lender platform must display all matching offers and name partner lenders that did not make one. Co lending, meanwhile, now requires a mandatory escrow rail across all regulated entities and all loan categories, which is an adjacent and licence consistent opportunity for an entity that already operates regulated escrow infrastructure.

The merchant discount rate. The position through FY26 was unchanged: a zero merchant discount rate on UPI merchant transactions and RuPay debit card transactions remained in force for the entire year. In the Union Budget presented on 1 February 2026 the Government allocated INR 2,000 crore for FY27 to incentivise low value

merchant UPI and RuPay debit transactions, against an FY26 revised estimate of approximately INR 2,196 crore, and was silent on merchant discount rate. On 16 March 2026 the Parliamentary Standing Committee on Finance recommended tiered reintroduction of a merchant discount rate on UPI, exempting street vendors and small merchants, noting that Government incentive support covers only 11 per cent of industry costs. After the close of FY26, Parliament amended the Payment and Settlement Systems Act, 2007 to remove the statutory bar on charging fees for UPI and RuPay debit transactions. Neither the turnover threshold nor the rate had been notified as at the date of this report, and no revenue benefit has been assumed.

Data protection. The Digital Personal Data Protection Rules, 2025 were notified on 13 November 2025, with implementation phased over eighteen months. Consent Manager obligations take effect from November 2026 and the operative core, covering notice and consent, fiduciary obligations, security safeguards, breach notification, retention and cross border transfer, from May 2027. A payment aggregator handling cardholder, merchant and transaction data at scale is a candidate for Significant Data Fiduciary designation, which would trigger annual independent data audit, data protection impact assessment and algorithmic risk due diligence. FY26 was a planning and gap assessment year; material cost falls in FY27 and FY28.

Institutional and forward agenda. During FY26 the Reserve Bank constituted the Payments Regulatory Board, replacing the Board for Regulation and Supervision of Payment and Settlement Systems. The new six member Board includes three Government representatives where its predecessor had none, which structurally increases Government influence over payments regulation. On 27 March 2026, in the final days of the year, the Reserve Bank released Payments Vision 2028, which states that the Vision "looks to guide the ecosystem towards an AI-led, data-driven approach to payments" and flags an interoperability framework for trade receivables discounting, a comprehensive review of the cross border payments framework and a Cyber Key Risk Indicators framework for non bank payment system operators.

3.3 Artificial intelligence and agentic commerce

During FY26, artificial intelligence increasingly emerged as an important infrastructure capability across payments and financial services.

Three competing agentic payment standards were published inside the year. Google published AP2, the Agent Payments Protocol, on 16 September 2025 with more than 60 partners including Mastercard, PayPal, American Express and Shopify. OpenAI and Stripe published the Agentic Commerce Protocol on 29 September 2025. Visa introduced the Trusted Agent Protocol in October 2025, and Mastercard had launched Agent Pay in April 2025. On 9 December 2025 the Model Context Protocol was donated to the Linux Foundations newly formed Agentic AI Foundation, with platinum members including Amazon Web Services, Anthropic, Bloomberg, Cloudflare, Google, Microsoft and OpenAI, at which point more than 10,000 active public Model Context Protocol servers were in operation.

In India the direction was set by the regulator. The Committee on a Framework for Responsible and Ethical Enablement of Artificial Intelligence in the Financial Sector submitted its report on 13 August 2025, setting out seven principles, six pillars and twenty six recommendations, including the development of indigenous, financial sector specific artificial intelligence models as public goods supporting Indias linguistic diversity, board approved artificial intelligence governance policies at regulated entities and mandatory disclosure to consumers when they interact with an artificial intelligence system. Payments Vision 2028 followed in March 2026. It is important to state the position accurately: the Reserve Bank issued principles and a roadmap during FY26; it did not issue a binding artificial intelligence framework. The National Payments Corporation of India separately launched UPI Help, built on its own small language model, and UPI Reserve Pay, expressly designed to support artificial intelligence driven autonomous payments, at the Global Fintech Fest on 8 October 2025.

The commercial evidence is early but directionally clear. Adobes analysis of over one trillion visits to United States retail sites found that traffic from generative artificial

intelligence tools during the November to December 2025 holiday season rose 693 per cent year on year in retail and 266 per cent in financial services, and that artificial intelligence referred visitors converted 31 per cent better than other sources, with revenue per visit up 254 per cent year to date.

The development of agentic artificial intelligence also carries material execution and valuation risks. Gartner expects over 40 per cent of agentic artificial intelligence projects to be cancelled by the end of 2027 because of escalating cost, unclear business value and inadequate risk controls. McKinsey finds that while 88 per cent of organisations report regular artificial intelligence use in at least one function, only 39 per cent report any earnings impact. The Reserve Banks Financial Stability Report of December 2025 also highlighted valuation and financing risks associated with artificial intelligence investment. No standard published during FY26 settles who bears the loss when an autonomous agent transacts in error.

The Gulf. The United Arab Emirates recorded real gross domestic product growth of 5.6 per cent in 2025 with inflation of 1.3 per cent, and card payment value of approximately US$ 154 billion, up 10.6 per cent, supported by the Dubai Cashless Strategy targeting 90 per cent cashless transactions by 2026. Two domestic developments bear on gateway economics there: the card scheme Jaywan secured co badge agreements with the international networks, and its domestic routing keeps interchange onshore, while the Digital Dirham retail launch was announced for March 2026 with merchant and e commerce acceptance slated for the second quarter of calendar 2026, which is a new acceptance rail. In the Kingdom of Saudi Arabia electronic payments reached 85 per cent of total retail payments in 2025, up from 79 per cent, on 14.6 billion transactions; within that, mada e commerce transactions grew 57 per cent to 1.77 billion, which is the most relevant single datapoint for an online gateway in that market. In Oman, e payment gateway transactions reached OMR 3.2 billion in 2025, up 76.3 per cent in value on volume growth of approximately 150 per cent, making it the fastest growing of the three Gulf markets from a small base. A margin headwind arises there in FY27: with effect from 1 July 2026 the Central Bank of Oman

waived fees on local digital fund transfers for retail customers and small businesses and cut QR code merchant fees from 0.75 per cent to 0.50 per cent with a ceiling of OMR 2 a transaction.

GIFT IFSC. Registered and authorised entities at GIFT IFSC reached 1,213 as at March 2026, from 1,114 in December 2025, and GIFT City ranked 43rd in the Global Financial Centres Index, up nine places year on year. The Foreign Currency Settlement System went live in October 2025, removing a correspondent banking hop from the cross border settlement chain. Under the IFSCA (Payment Services) Regulations, 2024 a single licence covers account issuance, e money issuance, escrow services, cross border money transfer and merchant acquisition at a net worth of US$ 100,000 rising to US$ 200,000 by year three, which is a materially lighter capital route into cross border payments than the domestic framework and permits combinations not available domestically.

3.5 Competitive landscape

The Indian merchant payments revenue pool is estimated at approximately INR 25,000 crore gross and INR 15,000 crore net today, projected to reach approximately INR 65,000 crore gross and INR 38,500 crore net by FY30, with merchant payments accounting for nearly three quarters of the industrys net revenue pool. Published net payment margins across the listed and reporting peer set are in single digit basis points, indicating continued pressure on merchant payment take rates.

FY26 saw further progress toward profitability across several large Indian payments platforms, which is contributing to greater emphasis on margin discipline. Consolidation also accelerated: Global Payments completed its acquisition of Worldpay in January 2026, and in February 2026 BillDesk agreed to acquire Worldlines India payments business, expanding its offline footprint. Capital market activity across the sector was mixed during the fourth quarter amid global market volatility.

3.6 Where the three opportunities intersect

Indias digital economy continues to expand rapidly, supported by increasing adoption of digital payments, the formalisation of commerce, deeper penetration of digital services and continued investment by

enterprises in technology infrastructure. Digital payments have become embedded in everyday economic activity and are increasingly integral to the operations of enterprises across sectors, while the industry itself is evolving beyond basic payment acceptance towards integrated payment infrastructure capable of supporting the complex requirements of large enterprises, institutions and digital businesses.

As businesses scale their digital operations they increasingly require payment partners capable of supporting multiple payment instruments, high transaction volumes, sophisticated integrations and reliable processing infrastructure. At the same time, enterprises are looking to consolidate fragmented technology applications into integrated digital environments spanning communication, commerce, customer management, finance, human resources and productivity. Artificial intelligence is accelerating that transformation, since generative and agentic artificial intelligence create the potential for enterprise software to evolve from systems that primarily record and facilitate transactions into intelligent systems capable of assisting, reasoning and executing workflows.

Against this backdrop your Company operates at the intersection of three significant opportunities: payments, enterprise platforms and artificial intelligence. Each addresses a different layer of the digital economy, and management believes the interaction between them can create opportunities greater than those available to each of them independently.

4. Company overview and business model

Your Company is a payment infrastructure company with two decades of operating experience, offering omni channel and full stack business to business digital payments, enterprise software platforms and lending solutions to merchants, enterprises, corporations, governments and financial institutions in domestic and international markets. The Company has been listed in India since 2016 and has maintained a consistently profitable record since. During FY26 it increased its focus on AI enabled transaction infrastructure.

The flagship brand, CCAvenue, provides a payment gateway platform offering over 200 payment options and enabling merchants to accept payments through websites and mobile devices

in 27 international currencies, with acceptance supported across more than 200 banks. The Company serves millions of clients across its digital payments and platform businesses and operates payment gateway businesses in India and the United Arab Emirates. It is a constituent of the MSCI and FTSE small cap indices. The Group employed over 950 people at the end of the year, including over 300 domain experts.

A distinguishing feature relative to most Indian payment companies is that your Company holds positions across the entire payments value chain rather than in acquiring alone: acquiring through CCAvenue, issuance through the majority owned subsidiary Go Payments, the network layer through the subsidiary SoHum Bharat, domestic remittance through Go Payments and international remittance through Fable Fintech, which the Company incubated in 2015 and which serves nine of the top ten private banks in India across more than 150 international corridors.

The three opportunities described in section 3.6 translate into three operating priorities: scale payments, build enterprise platforms and develop intelligence. Payments connect businesses and customers to transactions, enterprise software enables businesses to operate, and artificial intelligence progressively introduces intelligence and automation across both. The first two priorities are carried by the Companys two engines, AI driven fintech infrastructure and AI powered consumer and merchant platforms, organised as a four layer flywheel: a business acquires customers through Rediff, runs its operations on RediffOne, accepts payments through CCAvenue and is optimised automatically by Phronetic AI. The objective is to deepen engagement across consumers and businesses and create additional opportunities for

monetisation and operating efficiency. Following the realignment described in section 5.3, AvenuesAI Limited concentrates on scaling payments and developing artificial intelligence capability, while the Groups enterprise platform capabilities are consolidated under Rediff.com.

Internationally, operations span the United Arab Emirates, the Kingdom of Saudi Arabia, Australia and the United States of America, with a presence in Oman where the Company works with three of the countrys largest banks. All international business outside India is managed from the UAE subsidiary. The Company intends to continue increasing the contribution from international markets.

A note on portfolio evolution and disclosure.

During FY26 the Company continued to evolve and consolidate its product portfolio, including by integrating certain standalone offerings and capabilities into broader platforms, solutions and business verticals. Investor communications accordingly focus on strategic platforms, business lines and material growth initiatives rather than on an exhaustive catalogue of every product, feature or historical brand. The absence of a historical product or brand name from this discussion should be understood in that context and should not, by itself, be treated as evidence that the underlying technology, capability or intellectual property has ceased to exist. Where the Company has not expressly stated that one product is a renaming or successor of another, no such relationship is asserted here.

5. Segment wise and product wise performance

For reporting purposes the Company operates three business units, each with its own revenue model, alongside lending solutions as a business line.

Following the transfer of the Platform Business Undertaking to Rediff.com India Limited on 30 September 2025, the enterprise eCommerce platform business is conducted within Rediff, which remains a subsidiary of the Company and is consolidated accordingly.

CCAvenue, India and international. FY26 changed the payments business in four ways. Volume mix moved decisively towards credit card, large ticket, enterprise and institutional transactions, drawn from large enterprises, utilities, telecom, travel and hospitality, alongside consistent onboarding across small and medium enterprises and cooperative banking networks. Distribution widened through a partnership with Shiprocket Checkout for small and medium business and direct to consumer merchants, and through bank onboardings including RBL Bank and IDBI Bank for corporate net banking and ecosystem expansion with Ujjivan Small Finance Bank, Sree Narayana Guru Co operative Bank, TJSB Sahakari Bank and Janata Sahakari Bank. The Company also went live on Bharat Connect at the CCAvenue platform, onboarding Bajaj Finance Limited for bank link and QR based digital loan repayment flows. Platform depth increased during the year, with the platform layer contributing to growth in payment activity. And intelligence moved into the transaction path, with smarter routing, retry logic, timeout handling and improved fraud scoring identified as the largest contributors to improvement in payment success rates.

The objective of the payments strategy is not simply to increase merchant numbers. Your Company seeks deeper relationships with merchants, support for a broader range of payment instruments and a larger proportion of each merchants overall digital payment activity processed through its infrastructure. That creates several avenues for growth at once: new merchant acquisition, greater payment activity, increased share of wallet with existing merchants, expansion across payment instruments and deeper technology integration. Growth during FY26 was broad based across categories, spanning retail, travel, entertainment, hospitality and enterprise commerce, with the high frequency and recurring categories of utilities, telecommunications and recharge, direct to home television and education fees

representing an additional area of focus. The intention is a payments franchise capable of generating growth across multiple sectors rather than one dependent on any single category.

Offline acceptance. The material change of the year was regulatory. On 17 November 2025 the Company received the Reserve Bank of Indias authorisation to operate as a physical payment aggregator, extending its regulated presence across physical merchant locations through point of sale based networks and completing an acceptance stack that previously covered online activity alone. The offline portfolio comprises CCAvenue TapPay, a pin on glass software point of sale solution launched in 2022, an all encompassing point of sale device launched in 2024 supporting near field communication, EMV, static and dynamic UPI and equated monthly instalment transactions, and a SoundBox Max product deployed as a test during the year.

Bill payments. BillAvenue operates under a perpetual Bharat Bill Payment System licence from the Reserve Bank of India and functions both as a Biller Operating Unit and as a Customer Operating Unit. The Company has operated as an RBI licensed Bharat Bill Pay Operating Unit since 2017. During FY26 the platform continued to expand its agent led network in semi urban and rural markets, carrying utility, recharge and bill payment transactions into parts of India that the online gateway does not reach.

Bank payment infrastructure and vertical platforms. CPGS supplies core payment infrastructure to banks and financial institutions as a white label solution for payment processing, authentication and fraud prevention. Bank relationships include HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank and J.P. Morgan India in India, Mashreq Bank in the United Arab Emirates and Bank Muscat, Bank Dhofar and Sohar International in Oman. ResAvenue, the Companys hospitality platform, scaled during the year and began to demonstrate what artificial intelligence adds to a vertical platform, with tools deployed to help hotels implement smart pricing and optimise occupancy. B2Biz continued to serve corporate collections and payouts, including as a white label solution.

Assisted commerce. Go Payments connects agents across India, including neighbourhood

stores, pharmacies and small retailers, to the formal banking system, offering domestic money transfer, recharges, travel bookings, insurance, Aadhaar enabled payment system services, micro ATM, bill payments and card issuance for corporates and institutions. It is the issuance and domestic remittance leg of the groups payments ecosystem.

5.2 Artificial intelligence

Phronetic AI is the groups artificial intelligence company and the intelligence control layer of the platform. Its proprietary technology comprises vision language models under the name Owlet, reasoning models under the name RZN and the Agent Operating System, an orchestration layer connecting reasoning, vision and language models to enterprise workflows and supplying the traceability, compliance ready logs, guardrails and monitoring that agentic deployment in regulated institutions requires.

The Companys approach is deployment rather than model building for its own sake. Phronetic AI is not sold as a standalone product; it is embedded across the platform, converting data into decisions in real time across approve or reject, route or retry, nudge or notify, and predict or prevent, spanning payments, operations, customer communication, and risk and compliance. The internal measures tracked are payment success rates from intelligent routing, reduction in transaction failures, onboarding turnaround times, cross sell across ecosystem products, fraud detection and response times, support resolution times and reconciliation and settlement turnaround times.

Two product launches during the year gave this architecture external form. PayCentral.ai was launched on 8 October 2025 as an agentic payment platform, built on Googles AP2 protocol and designed to sit above the Model Context Protocol servers of multiple payment aggregators, allowing artificial intelligence agents to create dynamic payment links, handle refunds, manage subscriptions and reconcile accounts. CCAvenue CommerceAI was launched during the year, powered by the Companys proprietary Model Context Protocol, enabling agents and enterprise systems to initiate and orchestrate secure payment workflows while customer intent and two factor authentication remain with the

customer.

Direct artificial intelligence revenue is not yet material to the profit and loss account, and enterprise adoption has been slower than the industry expected. During the year, Phronetic AI signed a memorandum of understanding with fuel technology company Nawgati to deploy agentic artificial intelligence and video large language model technology in the fuel, fleet and energy sectors. The Company also developed PrivateGPT and on premise enterprise solutions focused on data privacy, sovereign infrastructure and enterprise deployment, supported by a Tier III storage and compute data centre at GIFT City. Further disclosure will be provided as direct artificial intelligence revenue becomes material.