Infibeam Avenues Ltd Management Discussions

The global economy is in a transitional phase marked by cautious optimism, measured recovery, and persistent risks. As per the International Monetary Funds (IMF) World Economic Outlook (January 2025), global GDP growth is projected at 3.3% in 2025 and 2026, marginally below the long-term average of 3.7%. Inflationary pressures are expected to ease from 4.2% in 2025 to 3.5% in 2026 driven by a gradual unwinding of aggressive monetary tightening and a softening of supply-side bottlenecks. Advanced economies such as the United States, Germany, and Japan are stabilizing, supported by resilient consumer demand and stronger supply chain efficiencies. However, emerging markets remain exposed to currency volatility, tighter financial conditions, and elevated external debt burdens. The IMF cautions that sustained trade frictions and rising protectionist policies, particularly tariff escalations led by the U.S., could moderate global growth to 2.8% in 2025.

Geopolitical instability, particularly in energy-sensitive regions such as the Middle East, continues to weigh on global inflation expectations. At the same time, digital transformationandAI-ledproductivitygainsarereshaping industries worldwide, acting as an important driver of medium-term growth. The effectiveness of these gains, however, depends on regulatory preparedness, talent development, and the pace of adoption across sectors. For India, this evolving global environment presents both challenges and opportunities. As the worlds fastest-growing major economy, India is leveraging digital public infrastructure, fintech adoption, and AI-driven innovation to strengthen its role in the global economy.

Context for Infibeam Avenues

Within this context, Infibeam Avenues stands at the forefront as a pioneering Indian fintech player, driving secure, scalable, and innovative payment and digital commerce solutions. By aligning with the structural shift towards digital-first economies, Infibeam Avenues is strategically positioned to harness global tailwinds in technology adoption while navigating macroeconomic uncertainties. The Companys focus on AI-powered payment infrastructure, platform innovations, and regulatory-compliant financial solutions enables it to contribute meaningfully to Indias digital transformation and expand its influence across global markets.

For Infibeam Avenues, the current global macroeconomic environment presents a balanced mix of challenges and opportunities. While subdued growth forecasts and ongoing geopolitical risks may affect cross-border trade flows and investor confidence, the steady recovery in advanced economies and the accelerating adoption of digital-first and AI-enabled solutions are directly aligned with the companys strengths in payments and platform services.

The anticipated moderation of inflation and interest rates across major economies is expected to create a more supportive environment for consumer spending, transaction volumes, and merchant activity in markets where Infibeam Avenues operates. At the same time, the uneven pace of digital transformation across geographies opens new opportunities for the company to bridge adoption gaps in emerging economies, providing secure, scalable, and cost-efficient fintech infrastructure to enterprises navigating tighter financial and regulatory conditions.

By staying focused on innovation, regulatory compliance, and AI-powered scalable infrastructure, Infibeam Avenues is strategically positioned to capture value from the ongoing shift towards global digital commerce. The company remains vigilant to risks stemming from trade policy shifts, financial volatility, and geopolitical uncertainties, while leveraging its role as a leading Indian fintech innovator to shape new opportunities in domestic and international markets.

Looking ahead, Infibeam Avenues seeks to strengthen its position as a “Make in India, for the World” fintech pioneer, exporting Indias technological capabilities to the global stage while enabling businesses everywhere to thrive in the digital economy.

Indian economy

India continues to stand out as a global growth leader, with GDP growth estimated at 6.5% 7.0% in FY 2024 25 and expected to stabilise around 6.5% in FY 2025 26. This consistent performance reaffirms Indias status as the fastest-growing major economy, powered by resilient private consumption, government-led infrastructure spending, improvements in logistics, and structural reforms aimed at strengthening manufacturing competitiveness.

In FY 2023 24, construction (10.7%) and manufacturing (8.5%) were among the strongest contributors to Gross Value Added (GVA), reflecting a broad-based industrial resurgence. This momentum has been further supported by healthy credit flows, with MSME lending expanding by 14.1% year-on-year and credit to NBFCs and the services sector rising over 20%, underscoring deeper financial penetration and growing access to formal funding.

The Reserve Bank of India (RBI) has maintained its policy repo rate at 6.5%, balancing growth priorities with inflation management. Retail inflation has moderated and is expected to remain within the 2 6% tolerance band, converging gradually toward the 4% medium-term target, creating a supportive environment for consumption and investment.

While external headwinds such as commodity price fluctuations, global trade disruptions, and spillovers from emerging market volatility persist, Indias strong macroeconomic fundamentals, policy stability, and expanding industrial base position it well to sustain its growth trajectory.

Context for Infibeam Avenues:

For Infibeam Avenues, this macroeconomic backdrop represents a high-growth domestic opportunity. Rising consumption, deeper digitisation of MSMEs, and expanding formal credit access directly complement the companys strengths in digital payments, AI-led fintech solutions, and enterprise platforms. As Indias e-commerce and digital transaction volumes continue to grow, Infibeam Avenues is positioned to capture significant value by providing secure, scalable, and innovation-driven financial infrastructure to businesses of all sizes.

Indias macroeconomic strength also creates a favourable operating environment for Infibeam Avenues expansion.

Increasing financial inclusion and credit penetration, particularly among MSMEs and service providers, enhances opportunities for the companys payment gateway and enterprise platform solutions. At the same time, moderating inflation and a stable interest rate regime boost consumer spending power, accelerating the adoption of digital payments.

By leveraging Indias growth momentum, deepening digital infrastructure, and expanding credit ecosystem, Infibeam Avenues is well-positioned to strengthen its domestic footprint, reinforce its role as a key enabler of

Indias digital growth story, and build resilience against external uncertainties.

Expansion of the digital payments ecosystem

Indias digital payments landscape continued its structural growth momentum in FY25, driven by UPIs unmatched scale and the steady expansion of other payment rails such as cards, BBPS, NETC, and PPIs. UPI alone processed ~11,761 crore transactions worth 180.24 lakh crore in FY25, accounting for ~84% of Indias retail digital payment volumes. This momentum is mirrored in the Reserve Bank of Indias Digital Payments Index (DPI), which stood at 493.22 in March 2025, marking a 10.7% YoY increase over March 2024. The indexs rise reflects nationwide gains in payment infrastructure and performance. For Infibeam Avenues Limited (IAL), these macro trends support aggressive merchant onboarding through CCAvenue and sustained transaction growth in MDR-bearing payment modes.

Overall Digital Payments Market India (Includes UPI, cards, BBPS, NETC, and PPIs; Source: RBI,

NPCI, PwC analysis)

	Transaction	Transaction Value
Fiscal Year
	Volume (in billion)	(in trillion)
FY 22 23	111	199
FY 23 24	159	262
FY 24 25 E	220	343
FY 25 26 E	279	395
FY 26 27 E	344	450
FY 27 28 E	409	513
FY 28 29 E	481	577

The data indicates that Indias digital payment transaction volume is expected to grow more than 2x between

FY24 and FY29, while transaction value is projected to more than double in the same period. Such sustained double-digit expansion presents a robust growth runway for payment aggregators, acquirers, and value-added service providers—sectors in which IAL maintains a competitive presence.

Cards Credit Rising, Debit Contracting

The Indian card market is poised for continued transformation, with credit cards leading transaction value growth. New customer sourcing will increasingly come from mass and mass-affluent segments, especially those earning INR 2.5 10 lakh annually. Product innovation is set to accelerate, with virtual cards, commercial credit cards for SMEs, wearables, and alternate underwriting models expanding access to credit for new-to-credit customers. Reward programmes are evolving into profit centres, integrating redemption directly at checkout to drive spending and engagement.

By FY 2028 29, credit cards in force are expected to reach around 200 million, generating more than 9 billion annual transactions and spending nearing INR 40 trillion.

Debit card activity is projected to remain muted unless significant product and rewards restructuring occurs, with credit lines embedded into merchant ecosystems and business platforms becoming more common.

Merchant Acquiring Infrastructure Expansion and Tier II IV Penetration

Merchant acquisition will continue its deep penetration into Tier II IV cities, with QR codes as the preferred acceptance mode due to their low cost and instant settlement features. Providers are expected to tackle low merchant activation rates with value-added services such as lending and insurance, as well as devices like soundboxes that improve transaction confirmation and loyalty.

By FY 2028 29, QR code deployments are projected to exceed 705 million, while POS terminals will approach

11.44 million. Soundbox adoption will more than double from FY 2023 24 levels to about 45 million units. Offline merchant acquiring revenues are anticipated to almost double, supported by expanded cross-selling of financial products.

POS Trends The Rise of SoftPOS in India

India is emerging as a frontrunner in the global adoption of Software Point-of-Sale (SoftPOS) technology, according to Worldlines white paper “SoftPOS: Transforming Contactless Payments Across Industries.”

The study projects over 3.45 crore SoftPOS merchant deployments worldwide by 2027, driven largely by the growing preference for contactless, smartphone-based payment systems.

With mobile payment volumes in India expected to surge from 66.30 lakh crore ($792.4 billion) in 2024 to 4,17.45 lakh crore ($4.99 trillion) by 2033, SoftPOS is poised to become a key enabler for businesses—particularly micro, small, and medium enterprises (MSMEs) to remain competitive in an increasingly digital payments ecosystem. As Worldline India CEO Ramesh Narasimhan notes, SoftPOS “empowers businesses to accept payments securely and affordably without dedicated hardware.”

The adoption wave will be led by MSMEs, who stand to benefit the most from its low-cost, scalable nature and ability to turn any NFC-enabled smartphone into a payment acceptance device. By eliminating the need for traditional POS terminals, SoftPOS opens the door for wider merchant participation, especially in semi-urban and rural areas where cost and infrastructure barriers have historically slowed adoption. With the convergence of mobile penetration, contactless preference, and regulatory support, SoftPOS is set to redefine the merchant acceptance landscape in India over the coming years.

Prepaid Payment Instruments (PPIs) Consolidation and New Gateways

The PPI segment is set to regain momentum through regulatory changes allowing integration with third-party platforms, boosting interoperability and simplifying access. Corporate disbursements, loyalty-linked use cases, and compliant product designs are likely to be the main growth drivers.

By FY 2028 29, PPIs are expected to handle about 10.4 billion transactions annually, with a total value of INR

5.0 trillion. Gift cards will continue to expand as a high-growth niche within the segment.

Bharat Bill Payment System (BBPS) From Utilities to Comprehensive Settlement Hub

BBPS is on track to evolve into a universal settlement platform covering all recurring and non-recurring payments, with cross-border BBPS for NRIs creating additional opportunities. Greater participation from banks, NBFCs, and fintechs will widen its reach, especially in rural and underserved areas.

By FY 2028 29, BBPS transaction volumes are expected to exceed 6.02 billion, with values reaching INR 16.2 trillion. The addition of more payment categories and billers will significantly enhance penetration.

National Electronic Toll Collection (NETC) Mobility Payments Scaling Up

NETC will broaden its role beyond toll payments, with expanded use cases in parking, commercial fleet management, and urban mobility. The planned adoption of the Global Navigation Satellite System (GNSS) will allow fully automated tolling and eliminate wait times.

By FY 2028 29, NETC transaction volumes are projected to reach 6.6 billion, with values of INR 1.19 trillion. Revenue from NETC is expected to grow from INR 26.2 billion in

FY 2026 27 to INR 35.7 billion.

Business and Commercial Payments B2B Digitalisation

B2B digital payments will increasingly integrate with lending, insurance, and accounting in embedded finance ecosystems. Commercial credit cards will extend to more SMEs, supported by connected finance dashboards that provide real-time cash flow visibility.

By FY 2028 29, virtual card adoption is expected to expand rapidly, with single-use formats becoming standard for high-security business transactions in logistics, healthcare, events, and travel.

Online Merchant Acquisition and Payment Gateways

Online merchant acquisition in India is set for sustained momentum, fuelled by the twin forces of e-commerce growth and government-backed digitalisation initiatives. The integration of merchants into online acceptance networks is becoming faster and more cost-effective, opening opportunities for new markets and merchant categories. Government programmes such as Digital India and the expansion of the Open Network for Digital

Commerce (ONDC) are accelerating payment gateway adoption, while the rise of affordable internet access and smartphone penetration continues to expand the addressable merchant base.

A key trend is the growing adoption of white-label payment gateways, which allow businesses to offer seamless, brand-consistent payment processing without building their own infrastructure. These gateways support multiple payment modes—credit and debit cards, prepaid instruments, BNPL, and bank transfers—giving merchants flexibility and enabling personalised checkout experiences. For SMEs, this flexibility is coupled with the ability to integrate payment processing directly into their business software, improving operational efficiency and maintaining brand identity.

The customisation of payment is also shaping the payment gateway market flows to meet sector-specific needs. E-commerce merchants benefit from easy-to-implement APIs, enabling quick onboarding and secure processing, while other sectors such as travel, healthcare, and education increasingly leverage gateway capabilities for recurring payments and subscription models. The growing influence of omnichannel commerce is prompting gateways to support both online and offline transactions, giving merchants a unified view of customer payments across channels.

By FY 2028 29, the Indian payment gateway market is projected to reach INR 259.06 billion, driven by the convergence of gateways with alternative payment methods, loyalty-linked checkouts, and embedded finance offerings. The integration of gateways into SME business platforms, accounting systems, and omnichannel retail solutions will be a defining feature of this evolution. With more fintech entrants, enhanced fraud prevention systems, and improved settlement speeds, online merchant acquisition will remain a central pillar of Indias digital payments growth story in the years ahead.

Regulatory and Technology Enablers

Regulators will focus on enhancing competition, fair pricing, and customer grievance mechanisms, while also enabling secure innovation. Big data analytics will be deeply embedded into payment systems, supporting personalisation, real-time settlement, and predictive fraud detection.

By FY 2028 29, super-app ecosystems combining payments, credit, insurance, and wealth management will be more prevalent, powered by robust regulatory frameworks and advanced fraud prevention technologies.

Against a backdrop of rapid digitalisation in payments, merchant infrastructure expansion, and growing demand for omni-channel acceptance solutions, Infibeam

Avenues Limited (IAL) is uniquely positioned to capitalise on both the scale and direction of the market. As Indias first listed fintech and one of the top three B2B payment gateways in the country, IAL operates at the core of the fastest-growing segments—online merchant acquisition, alternative acceptance solutions, and bill payment platforms.

The companys flagship CCAvenue gateway directly aligns with the projected surge in the Indian online PG market to over INR 259 billion by FY 2028 29. With a merchant base exceeding 10 million and record onboarding momentum in FY25, IAL has a strong springboard for sustained market share gains. Complementary products such as CCAvenue Smart SoundBox and TapPay enable the company to ride the accelerating offline merchant acquisition wave, especially in Tier II IV towns where soundbox and QR-based acceptance are growing sharply.

Beyond payments, IALs BillAvenue platform, integrated into the Bharat Bill Payment System (BBPS), provides significant penetration into utility and recurring payments—a segment expected to more than double in transaction value and volume by FY 2028 29. With coverage across 85% of BBPS billers and a 1.2 million-strong agent network, IAL has deep reach into semi-urban and rural India, where regulatory and infrastructure initiatives are driving the next phase of digital adoption. Strategically, the recent majority acquisition of Rediff and the upcoming introduction of RediffPay for consumers represents a major growth lever. Rediffs strong brand recall, enterprise email solutions, and consumer reach provide IAL with a ready platform to cross-sell fintech offerings, while RediffPay enhances its capabilities in consumer-facing payments. This acquisition not only broadens IALs ecosystem but also strengthens its ability to deliver integrated solutions spanning payments, communications, and digital commerce reinforcing stickiness among both enterprises and SMEs.

Meanwhile, IALs diversification into AI-driven transaction intelligence under Phronetic.AI, and its Infibeam Quantum

Edge distributed data center network positions the company at the intersection of payments, AI, and digital infrastructure. These adjacencies align with structural shifts toward embedded finance, AI-powered analytics, and scalable infrastructure—offering resilience against payment margin compression and opening new growth avenues globally, especially across the GCC.

Underpinned by Indias macroeconomic strength, robust GDP growth, deepening credit penetration, moderating inflation, and stable interest rates, IAL stands to benefit from expanding digital transaction volumes, MSME digitisation, and rising consumer demand. With committed investment in AI, data centers, and omni-channel payment solutions, and a consistent track record of profitability, Infibeam Avenues is structurally positioned to enable Indias digitally empowered economy beyond 2026 while building scale and resilience for global expansion.

Infibeam Avenues Limited (IAL), Indias first listed fintech company, strengthened its position in FY25 as a multi-vertical technology powerhouse operating at the convergence of fintech, artificial intelligence, and digital infrastructure. Over the past year, the company successfully evolved from a pure-play digital payments provider into a diversified platform offering omni-channel payment solutions, enterprise SaaS commerce, AI-led products, and distributed data center infrastructure. With over two decades of operational experience and a consistent record of profitability, IAL today operates one of the most comprehensive and future-ready digital ecosystems in the market.

The companys flagship brand, CCAvenue, continues to be among the top three B2B online payment gateways in India and one of the leading non-bank private payment processors in the UAE. Serving millions of merchants, future growth will also be driven by innovative product launches such as the CCAvenue Smart SoundBox, which integrates QR, NFC, card, EMI, and UPI acceptance into a single device, and CCAvenue TapPay, which converts any Android phone into a contactless payment terminal, unlocking new opportunities for micro-entrepreneurs and gig workers.

Table 1 CC Avenue TPV Data (India + Intl.)

FY	INR billion	USD billion
FY21	952	12
FY22	1,669	20
FY23	2,160	26
FY24	2,722	33
FY25	2,732	33

In bill payments, BillAvenue, operating under the Bharat

Bill Payment System (BBPS), deepened its coverage to connect with 85% of all billers on the network and expanded its agent base to 1.2 million, driving adoption in rural and semi-urban regions. Complementing this, Go Payments—a majority-owned subsidiary—scaled its assisted commerce services across money transfers, recharges, insurance, and prepaid cards to over 10,000 pincodes nationwide.

The Platforms segment, contributing about 5% of gross revenue, delivered robust performance through its cloud-based SaaS offerings that integrate ERP, CRM, HRMS, payments, and value-added enterprise solutions. Clients contracts structured on licensing and annuity models, ensures focus on recurring revenues. While the

Government e-Marketplace (GeM) continues to run on IALs infrastructure, revenue recognition ended in Q3

FY24 due to contract restructuring, with focus now on expanding enterprise and international deployments.

A key highlight of FY25 was IALs strategic pivot into

Artificial Intelligence and digital infrastructure. The company formally introduced its AI arm, Phronetic.AI, envisioned as a developer platform for global marketplace for AI agents, enabling developers and enterprises to build and deploy autonomous AI solutions without coding. Expanding beyond agent marketplaces, IAL recently announced significant investments in reasoning models and agentic AI systems, aimed at building next-generation AI capabilities that move from transactional automation to cognitive decision-making. These advancements position the company at the forefront of enterprise-grade AI adoption, with applications across commerce, finance, and digital services.

Supporting its AI roadmap is Infibeam Quantum Edge, a distributed AI-optimized data center network designed for high-performance computing workloads. With a targeted payback period of under 24 months, the initiative is expected to provide both scalability and cost efficiencies. To accelerate its AI, data center, and GCC expansion plans, IAL has committed an investments, partly funded through the recently concluded rights issue of up to INR 700 crore.

FY25 also saw the announcement of the acquisition of Rediff and introduction of RediffPay, a strategic growth opportunity that enhances IALs digital ecosystem through a stronger consumer internet presence and an integrated payments offering.

Revenue Model Overview

Infibeam Avenues operates a growth-oriented revenue model that blends transaction-driven income with annuity-based licensing streams, ensuring both scale and stability. The majority of revenues are derived from transaction-based activities—spanning both Payments TPV and Platform TPV—while the remaining comes from non-transactional sources such as ancillary platforms and services.

Over the past four years, the company has demonstrated consistent scale-up in processing volumes. Total

Transaction Processing Value (TPV) expanded from INR

1.4 trillion in FY21 to INR 8.6 trillion in FY25, driven by robust growth across both the payments segment and the enterprise platform business. Importantly, monetisation has also strengthened, with the Payments Net Take

Rate (NTR) improving from 5.8 bps in FY22 to 11.7 bps in FY25, reflecting better pricing, favourable merchant mix, and operational optimisation. Quarterly FY25 data also confirms healthy and sustainable margins, with NTR holding in the 9.2 11.1 bps range.

IAL exceeded its FY25 financial guidance across all key metrics, delivering strong growth in revenue and profitability while maintaining industry-leading margins. This performance was underpinned by higher transaction volumes, an improved payments net take rate, a favourable merchant mix, and expanding international contributions.

Metric	FY25	FY24	YoY Growth
Transaction Processing Value (INR billion)	8,670	7,043	+23%
Payments Net Take Rate (bps)	11.7	8.2	+44%
Consolidated Gross Revenue (INR mn)	39,926	31,503	+27%
Consolidated Net Revenue (INR mn)	5,258	4,192	+25%
Consolidated adjusted EBITDA* (INR mn)	3,121	2,537	+23%
Consolidated adjusted EBITDA* Margin (% Net Revenue)	59%	61%	—
Consolidated adjusted Profit After Tax* (INR mn)	2,095	1,478	+42%
Consolidated adjusted PAT* Margin (% NR)	40%	35%	—

* Excluding the notional impact arising from mark-to-market gain / (loss) from investment in listed security [this has no impact on cash flows]

Table Revenue Model Data

FY	Platform TPV (INR trillion)	Payments TPV (INR trillion)	Total TPV (INR trillion)	Annual NTR (bps)
FY21	0.4	1.0	1.4	—
FY22	1.1	1.9	2.9	5.8
FY23	2.0	2.4	4.4	8.2
FY24	4.0	3.0	7.0	8.2
FY25	5.4	3.2	8.6	11.7

Infibeam Avenues exceeded its FY25 financial guidance across all key metrics, underscoring strong operating leverage and execution capabilities. Performance was anchored by:

• Higher transaction volumes,

• Improved payments net take rate,

• Favourable merchant portfolio, and

• Growing international contributions.

Key financial highlights:

• Consolidated Gross Revenue: INR 39,926 million, up 27% YoY, driven by a 23% increase in TPV and a 44% YoY improvement in payments NTR to 11.7 bps.

• Consolidated Net Revenue: +25% YoY, reflecting both scale and monetisation gains.

• Consolidated adjusted EBITDA*: INR 3,121 million, up 23%, with EBITDA margins at 59% of net revenue, among the highest in the industry.

• Consolidated adjusted Profit After Tax (PAT)*: INR 2,095 million, up 42% YoY, delivering a 40% PAT margin—highlighting strong efficiency, scalability, and resilience.

* Excluding the notional impact arising from mark-to-market gain / (loss) from investment in listed security [this has no impact on cash flows]

This reinforces Infibeam Avenues ability to grow at scale while sustaining industry-leading profitability, validating its strategy of combining transaction-led growth with technology-driven operating leverage.

CONSOLIDATED FINANCIAL PERFORMANCE

The consolidated financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) under the historical cost convention on an accrual basis except for certain financial instruments which are measured at fair values, the provisions of the Companies

Act, 2013 (‘Act) (to the extent notified) and guidelines issued by the Securities and Exchange Board of India

(SEBI). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.

The discussions in this section relate to the consolidated financial results pertaining to the year ended March

31, 2025. The significant accounting policies, involve the use of estimates, judgments, and assumptions that are significant to understand our results. For additional information, see Note 1-4 of consolidated financial statements.

A. Analysis of Revenue

1. Revenue from operations

(Rs. in mn)	FY25	FY24	Change
Operating Revenue	39,926	31,503	26.74%

Operating Revenue increased by 26.7%, reaching 39,926 million in FY25 compared to 31,503 million in FY24. This growth was fuelled by higher transaction volumes and larger average transaction values processed on our platforms. Details are given below :

(Rs. in mn)	FY25	FY24	Change
Volume of transactions processed (Nos. mn)	562	531	5.84%
Value of transactions processed (Rs in bn)	8,670	7,043	23.10%

This robust growth demonstrates the scalability of our payment ecosystem and the trust we continue to build among merchants, consumers, and partners. The higher transaction value highlights our increasing share in large-value digital payments, while transaction volumes indicate wider adoption across SMEs, corporates, and retail merchants. Our ability to seamlessly handle scale—without compromising on speed or security—positions us as one of the most reliable payment partners in the market. Our Fintech offerings are in two broad business segments and segment-wise generation of revenue has been as follows:

(Rs. in mn)	FY25	FY24	Change
Business Segment
Payment Business	37,866	29,532	28.22%td>
E-Commerce Platform Business	2,060	1,971	4.52%
Total Operating Revenue	39,926	31,503	26.74%

The Payments segment remained the growth engine, benefiting from expanded merchant onboarding, deeper MSME penetration, and international expansion in the UAE and KSA. Additionally, verticals such as Bill Payments (BillAvenue) and Remittance & Assisted Commerce (Go Payments) provided incremental growth. The E-Commerce business continued to add stability by contributing a steady revenue stream, reinforcing our multi-pronged approach to digital commerce enablement.

Our Fintech offerings can be further analyzed from the following perspectives:

	(Rs. in mn)	FY25	FY24	Change
	Revenue from operations
	India	36,210	29,412	23.11%
	Abroad	3,716	2,091	77.71%
	Total Operating Revenue	39,926	31,503	26.74%
2	Other Income
	(Rs. in mn)	FY25	FY24	Change
	Other Income	731	248	194.76%

The surge in other income reflects disciplined treasury management and timely portfolio rebalancing. While FY25 and FY24 benefitted from a one-time fair value investment gain, FY25 demonstrates a sustainable improvement in recurring streams such as interest. Our balanced approach ensures liquidity while optimizing returns from surplus funds. Other income primarily consists of Interest on Bank Deposits and others, Fair value gain on Investment in Equity instruments, Profit on sale of investment and fixed assets, Reversal of excess Liabilities / provision for expenses, etc.

B. Analysis of Expenses

1. Operating expenses

(Rs. in mn)	FY25	FY24	Change
Operating expenses	34,668	27,311	26.94%
% of revenue	86.8%	86.7%

The rise in operating costs is directly linked to the higher scale of transactions processed during the year. Despite growth in absolute terms, operating expenses as a percentage of revenue remained largely stable, showcasing efficiency gains and disciplined cost management. Continued investment in transaction validation processes ensures reliability and builds merchant trust, which is central to our business model. We have reported operating expenses of INR 34,668 million in FY25 as against INR 27,311 million in FY24.

2. Employee benefits

(Rs. in mn)	FY25	FY24	Change
Employee benefits	1,482	1,209	22.58%
% of revenue	3.7%	3.8%

The increase reflects both annual increments and the onboarding of additional talent to support business growth. A significant portion of these costs relates to technology teams across application development, platform operations, and Research & Development. This investment underscores our long-term vision—enhancing customer experience, developing innovative fintech solutions, and scaling our operations sustainably. We seek to invest efficiently in several areas of technology development so we may continue to enhance the customer experience and improve our process efficiency through rapid technology developments while operating at an ever increasing scale. We expect spending in technology cost to increase over time as we continue to add employees and technology infrastructure.

There has been 22.58% increase in employee cost during FY 2025 mainly because of annual increments and recruitment of new employees to take care of growing business.

3. Finance Costs

(Rs. in mn)	FY25		FY24	Change
Finance Costs		83	24	245.83%
% of revenue	0.2%		0.1%

The rise in finance costs indicates strategic leveraging of debt to fuel business expansion and technology infrastructure investments. While the cost of borrowing has increased, our capital structure remains healthy, and these borrowings are directed toward growth initiatives expected to generate long-term shareholder value.

Finance costs increased significantly by 245.83% to 83 million from 24 million in FY24, largely due to higher bank borrowings.

4. Depreciation and Amortisation

(Rs. in mn)	FY25	FY24	Change
Depreciation and Amortization	704	666	5.71%
% of revenue	1.8%	2.1%

The increase is due to fresh additions to our fixed assets base during the year. These investments are predominantly in technology infrastructure, hardware, and software platforms, which directly support our ability to scale and innovate. We continue to align our capital expenditure with business expansion priorities.

Depreciation and amortisation stood at 704 million, compared to 666 million in FY24, reflecting a 5.7% increase.

5.	Other expenses
	(Rs. in mn)	FY25	FY24	Change
	Other Expenses	742	446	66.37%
	% of revenue	1.9%	1.4%

This increase was primarily driven by higher web hosting and server expenses, reflecting growth in digital activity and platform usage. Additional spending on advertising and marketing, sales promotion, and professional fees underscores our focus on customer acquisition and brand strengthening. Additionally, Loss on sale of Investment and fixed assets were one time charge which has contributed the increase in other expenses.

Other expenses increased to 742 million in FY25 from 446 million in FY24, an increase of 66.4%.

6. Income tax

(Rs. in mn)	FY25		FY24
Current Tax		56		-
Deferred Tax		666		516
Total Tax Expenses		722		516
Profit Before Tax	3,082		2,075
Tax as % of Profit before tax	23.43%		24.87%

The sharp rise in profitability reflects strong operating leverage as revenue growth outpaced expense growth. Our effective tax rate remained stable, aligned with the chosen regime under Section 115BAA of the Income tax Act, 1961. With a PAT margin improvement, we continue to demonstrate both financial resilience and growth momentum, assuring shareholders of sustainable value creation.

We not only strengthened our position in the Indian payments ecosystem but also established a footprint in key international markets. With consistent investment in technology, talent, and partnerships, we are building a future-ready fintech enterprise. Our commitment remains clear—driving innovation, ensuring trust, and delivering sustainable growth for all stakeholders.

Key Financial Ratios
					Reason for Significant
Ratio	Calculation	FY 25	FY 24	Variance
					Variance
Ratios-Financial
performance
Operating margin	EBIT / Operating Net Revenue	44%	45%	-1%	No significant variance
EBIDTA margin	EBIDTA* / Operating Net	59%	61%	-2%	No significant variance
	Revenue
Net Profit margin	Net Profit */ Operating Net	40%	35%	13%	Increase in Net Profit
	Revenue
Interest coverage	EBIT / Interest expenses	37.58	161.67	-77%	Due to significant
ratio					Increase in Interest
					expenses as compared
					to previous year.
Ratios-Balance
sheet
Return on Net worth	Net Profit */ Average Equity net	11%	9%	16%	Increase in Net Profit
	of Goodwill
Current ratio	Current Assets / Current	1.59	1.36	17%	Improvement in view of
	Liabilities				prudent working capital
					management
Debtors Turnover	Operating Revenue / Average	39	36	8%	Improvement in view of
ratio	Trade Receivable				better trade receivable
					management
Return on Equity	EBIT/Total Assets less Total	6.1%	5.5%	10%	Increase in EBIT
Ratio	Liabilities
Net Capital Turnover	Income from Operations/	6.49	6.68	-3%	No significant variance
Ratio	Average Working Capital
	(Current Assets less Current
	Liabilities)
Ratios - Per Share
Earnings per share	PAT / Weighted average	0.85	0.57	49%	Increase in PAT
	number of equity shares

*EBITDA and PAT are excluding the impact from mark-to-market movement of an investment in a India listed entity.

Strategic Outlook

Infibeam Avenues Limited (IAL) enters FY26 with a sharp focus on scaling its AI-powered payments and platform ecosystem, while accelerating the consumer rollout of RediffPay as a next-generation digital payments solution. The company is also pursuing an ambitious global expansion strategy, with international operations expected to contribute 20 25% of top-line revenue within the next two years.

Further, IAL is investing in strengthening its infrastructure backbone through the Infibeam Quantum Edge initiative, enabling secure, scalable, and high-performance digital commerce. Supported by a strong balance sheet, a high-margin business model, and a rapidly expanding technology stack (including AI, reasoning models, and agentic AI through Phronetic.ai), the company is uniquely positioned to capture emerging opportunities across domestic and global markets.

Together, these initiatives underscore IALs commitment to sustainable growth and long-term value creation for shareholders.

		Risk	Risk
Risk	Risk Definition			Mitigation
		Probability	Impact
Regulatory and	Changes in domestic or	Low	High	Maintain proactive engagement
compliance risk	international regulations			with regulators; invest in
	governing payment systems,			compliance infrastructure; ensure
	data protection, and cross-			continuous monitoring of global
	border transactions could			and local regulatory developments;
	impact product offerings and			build flexible systems that can
	operational processes.			adapt to policy changes.
Cybersecurity	Unauthorized access, hacking,	Low	High	Deploy advanced security
and data breach	or data breaches could lead			protocols, multi-layer encryption,
risk	to loss of sensitive financial			and fraud detection systems;
	and customer information,			conduct periodic security audits;
	regulatory penalties, and			implement employee training on
	reputational damage.			cybersecurity best practices.
Technology	Rapid changes in digital	Medium	Medium	Maintain strong R&D focus; invest in
disruption risk	payment technologies and			emerging technologies; collaborate
	AI-led platforms may render			with fintech partners; ensure agile
	existing systems obsolete or			product development to adapt to
	less competitive.			market innovations.
Operational	Payment processing and	Low	High	Invest in redundant systems and
downtime	platform services rely on			cloud-based failover infrastructure;
and service	continuous system availability;			implement real-time monitoring;
interruption	outages or slow transaction			establish rapid incident response
	times could cause merchant			protocols.
	dissatisfaction and revenue
	loss.
Fraud and	Increasing sophistication of	Low	Medium	Implement AI-driven fraud
transaction risk	fraudulent activities, including			detection, real-time transaction
	phishing and identity theft,			monitoring, and multi-factor
	could result in financial loss and			authentication; conduct merchant
	reduced merchant trust.			education programs on fraud
				prevention.
Competition risk	Intensifying competition	High	High	Differentiate through customised
	from global payment players,			solutions, competitive pricing, and
	domestic fintech start-ups, and			value-added services; strengthen
	large technology companies			merchant partnerships; expand
	could erode market share.			cross-border capabilities.
Macroeconomic	Slowdown in consumer	Medium	Medium	Diversify merchant base across
and market risk	spending,inflationarypressures,			sectors; develop value propositions
	or global trade disruptions may			for both low and high-volume
	reduce transaction volumes and			clients; expand into counter-
	platform usage.			cyclical business segments.
Reputation risk	Negative publicity from service	Low	High	Maintain transparent
	failures, regulatory actions, or			communication during incidents;
	security incidents can damage			uphold service quality; proactively
	customer and merchant trust.			manage brand perception through
				positive engagement and corporate
				responsibility initiatives.
Business model	The inability to adapt the	Medium	High	Continue expanding and
agility risk	business model quickly in			diversifying the business model
	response to changing market			beyond core payment processing—
	dynamics, evolving customer			such as scaling enterprise SaaS
	needs, or technological shifts			platforms, enabling omnichannel
	could limit competitiveness and			solutions, and integrating AI-driven
	growth.			services—to ensure adaptability
				and revenue resilience.

Human Resources Overview

Workforce Growth & Profile

As of March 31, 2025 Infibeam Avenues employed 764 individuals on standalone basis and 950+ employees at group level. The expansion highlights the companys strategic focus on strengthening its technology, AI, and payments infrastructure capabilities.

Talent Alignment & Incentives

The company operates an Employee Stock Option Plan

(ESOP), administered through the Infibeam Employee Welfare (IEW) Trust, enabling employees to acquire shares at a 93 98% discount to market price. This scheme fosters a strong ownership mindset and aligns long-term employee interests with shareholder value creation.

Workplace Culture & Employee Engagement

Employee experience remains central to IALs people strategy. External reviews suggest job security and collaborative environment are strong points, while career growth and work-life balance are identified as areas for further improvement. IAL is actively exploring structured mentorship, leadership programs, and internal career mobility to address these dimensions.

Ethics, Compliance & Well-Being

The company enforces strict compliance through its Code of Conduct and governance policies, covering anti-bribery, whistle-blower mechanisms, prevention of sexual harassment, and equal opportunity. Notably, in FY 2023 24, there were no complaints or incidents reported under workplace harassment or discrimination, reaffirming its commitment to a safe, ethical, and inclusive environment.

Talent Development Spotlight

• AI-First Training: With the launch of phronetic. ai and recent investments in reasoning models and agentic AI, the company has begun building specialized training programs to upskill employees in AI/ML, cloud computing, and advanced data science.

• Leadership Pipeline: A structured Future Leaders

Program is being developed to identify and groom high-potential employees for roles in product innovation, enterprise SaaS, and global expansion.

• Continuous Learning: Partnerships with leading ed-tech platforms and universities are enabling employees to pursue micro-certifications in cybersecurity, fintech innovation, and compliance.

HR Initiatives for FY26

• Scaling Workforce for AI & Global Expansion:

Anticipated headcount growth of 15 20% YoY, with a focus on AI engineers, compliance professionals, and client relationship managers to support global operations.

• Employee Experience 2.0: Introduction of hybrid work models, wellness programs, and mental health initiatives to enhance overall employee satisfaction.

• Diversity & Inclusion: Targeted hiring initiatives to increase gender diversity in leadership roles and foster inclusion across geographies.

• Performance & Rewards: Revamp of performance-linked incentive structures, aligning them with AI-driven product milestones and global payments growth objectives.

Internal control systems

Framework and Philosophy

Infibeam Avenues Limited (IAL) maintains a robust system of internal controls designed to safeguard assets, ensure reliable financial reporting, and uphold compliance with applicable laws and regulations. The internal control framework is aligned with globally accepted practices and regularly benchmarked against industry standards. The philosophy guiding these controls is rooted in transparency, accountability, and operational efficiency, ensuring that every process across payments, digital infrastructure, and enterprise solutions is governed with integrity and prudence.

Governance Oversight

• Board and Audit Committee Supervision: The Audit

Committee of the Board, comprising a majority of independent directors, provides oversight on the adequacy and effectiveness of internal controls, internal audit findings, and risk mitigation plans.

• Management Accountability: Functional heads are directly responsible for implementing internal controls within their respective domains, fostering a culture of ownership and compliance.

Internal Audit and Assurance

The Internal Audit function, led by an independent professional firm, carries out risk-based audits across business verticals, subsidiaries, and international operations.

Audit findings are reviewed by senior management and reported to the Audit Committee. Actionable recommendations are monitored until resolution.

Technology-enabled audit tools and data analytics are increasingly being deployed to enhance coverage, accuracy, and predictive risk assessment.

Risk Management

IAL follows a structured Enterprise Risk Management

(ERM) framework that identifies, assesses, and mitigates strategic, operational, financial, and compliance-related risks.

• Financial Risks: Stringent monitoring of receivables, liquidity, and foreign exchange exposures.

• Operational Risks: Strong IT security policies, disaster recovery systems, and continuous monitoring of transaction processing to ensure uninterrupted service delivery.

• Regulatory Risks: Regular updates to compliance frameworks in line with evolving RBI, SEBI, and global regulatory guidelines.

• Cybersecurity: Given the companys role in digital payments and AI infrastructure, cyber resilience is a top priority. Advanced encryption, 24/7 monitoring, and third-party security audits form the backbone of its defense strategy.

Adequacy of Internal Controls

The Board is of the view that the companys internal control system is adequate and effective, operating at multiple levels with checks and balances. No material weaknesses were observed in FY 2024 25. The system continues to evolve with the companys scale and complexity, incorporating AI-driven monitoring, automation of control processes, and predictive analytics to pre-empt risks and enhance governance.