Ladies and gentlemen, you have joined the Infibeam Avenues Limited Earnings Conference Call. Please stay connected. The call will begin shortly. I repeat, you have joined the Infibeam Avenues Limited Earnings Conference Call. Please stay connected. The call will begin shortly. Ladies and gentlemen, good day and welcome to Infibeam Avenues Limited Q1 FY 2026 Earnings Conference Call hosted by Go India Advisors. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rajat Gupta from Go India Advisors . Thank you and over to you, sir.
Yeah, thank you, Amshad. Good evening, everyone, and welcome to Infibeam Avenues Limited Earnings Call to discuss the Q1 FY 2026 Results. We have on the call with us today Mr. Vishal Mehta, Managing Director; Mr. Vishwas Patel, Joint Managing Director; and Mr. Sunil Bhagat, Chief Financial Officer. Also joining us on the call today is Mr. B. Ravi, who is advising Infibeam on corporate and financial strategy as an independent consultant. I must remind you that the discussion on today's call may include certain forward-looking statements and must be therefore viewed in conjunction with the risks that the company faces. I now request Mr. Vishal Mehta to take us through the company's business outlook and financial highlights, subsequent to which we'll open the floor for Q&A. Thank you and over to you, sir.
Thank you, Rajesh. Very, very good evening to everyone. It's truly a privilege to be here with all of you today: our partners, our investors, and those who have placed their trust in the Infibeam journey from the beginning. At Infibeam, we've built our success on two core principles: deep technology and strategic foresight. Today, I want to talk to you about what we believe is the next defining chapter in that journey, a theme that's not just shaping our roadmap, but the very way and value whereby which is being created in this digital age. The theme that I'd like to talk to you about today is platform convergence. We believe that the age of platform silos is over. Over the past few years, we've built a scaled, category-leading products. For example, with CCAvenue, we've become a trusted name in digital payments.
With our e-commerce platform, we've supported giants like Jio, Saudi Telecom, Government, and others, powering the robust infrastructure at scale. Now, with Phronetic.ai, we've stepped boldly in the AI frontier. We see that the market is also evolving, and so are the customer expectations. Today's businesses, whether they are startups, SMEs, or large enterprises, they don't want fragmented tools anymore. What they want is a complete solution. They do not want to juggle with disconnected systems. They're asking a simple and a powerful question: can I do more from one platform without the friction and without the overheads? Our answer to that is yes. The way forward is through convergence. Let me be clear on why convergence wins. This isn't just about bundling products or stitching different platforms together with features. Convergence, to us, is actually a mindset shift.
It's about reimagining how value is created when platforms are strategically aligned. Let's look at the flow for an example. We believe that payments fuel commerce. Commerce feeds into CRM and operations, and operations will drive productivity. AI that we are investing in will empower every step of the chain. When these elements exist in silos, you get friction. When they converge, we believe you'll get flow. The result will be a better user experience, higher retention, richer data and intelligence, lower cost to serve, and a massive opportunity to cross-sell and upsell. This isn't about diluting the focus; it's about amplifying the impact. Earlier today, Infibeam Avenues Board has approved a strategic transfer of the e-commerce platform infrastructure business to for INR 800 crore. I would like to address why the platform moved to Rediff and why now. It's a pivotal decision in our strategy.
We believe that our e-commerce platform business, while extremely strong on its own, can deliver even greater value when paired with Rediff's enterprise ecosystem. Here's why the combination makes powerful forms. First, the frameworks: Rediff's Enterprise platforms, Rediffmail, RediffPay for consumers, and the growing Rediff Funds suite are purpose-built for productivity, CRM, and ERP. By adding e-commerce to this framework, we complete the entire circle. Second, the go-to-market strategy. Rediff has already got long-standing relationships with thousands of businesses across email, communications, and media. This gives us immediate access to trusted distribution channels, perfect for bundling, upselling, and scaling quickly. Third, the power of the brand. Rediff's legacy and credibility, especially both in Indian as well as global markets, bring increased visibility and resonance to our platform. Finally, strategic oversight.
Even as we transition the platform under the Rediff umbrella, Infibeam retains more than 80% equity control of Rediff. That means we remain closely aligned not just operationally, but in the vision and execution as well. What this means for investors is what I'd like to cover. To me, it means financial clarity. It means business focus. We now operate through two powerful, independent, scalable verticals. One is Infibeam, where we are focused and where we are focusing all our firepower on CCAvenue payments in AI infrastructure. The second one is Rediff, where we are now unlocking the full potential of e-commerce, enterprise, SaaS, which is software as a solution, and productivity platforms. This structure reflects maturity and the confidence to align capital, leadership, and strategy to the right verticals at the right time.
It also mirrors what we are seeing globally, where platform companies are winning through vertical integration, ecosystem thinking, and unified customer experience. With platform convergence, we are now positioned to build end-to-end ecosystems that meet full-spectrum business needs, develop deep partnerships that go beyond transactional integration, scale across industries, geographies, and digital use cases, and most importantly, become indispensable infrastructure in the digital economy. This is not just about optimizing what we have; it's about designing the infrastructure for tomorrow. Let me leave you with this thought before I transfer the call to Vishwas. We are not creating platform silos. We are creating multipliers of value. We are not shifting assets. We are realigning them for strategic acceleration. As India's digital economy gains momentum, Infibeam isn't just participating; we are building the roads, the rails, and the engines for AI that will carry it forward.
We remain deeply committed to transparency, execution, and long-term value creation. With that, I will pass on the discussion to Vishwas on business updates. Vishwas, over to you.
Thank you, Vishal . Good evening, everybody, on the call. Before I begin, I want to express our deepest gratitude to all our investors for the successful rise to ship. Your continued belief reinforces our conviction and gives us the momentum to accelerate growth and innovation with confidence. As Vishal mentioned, Rediff is now entering into a transformative growth phase, built around three focus verticals, the first one being Rediff platforms. This includes RediffOne, an enterprise e-commerce suite designed for large and mid-sized businesses to manage their full digital lifecycle, from storefronts and hosting to analytics and CRM. Rediff platforms will offer a fully SaaS-powered business ecosystem.
This is led by our own teams in India, hosted in India, and complied with all our local Indian laws. The second is Rediff-TV, our newest and most exciting venture. Rediff-TV is India's first fully AI-driven content platform, enabling creation, curation, and monetization at scale with a robust edge tech engine built in. It's not just about streaming; it's about building a high-growth media and advertising vertical powered by machine learning. The third one is RediffPay , a future-ready platform designed to scale with the next wave of innovation, be it UPI, stablecoin, CBDC, or tokenized e-commerce. It complements our enterprise offerings and enhances the user experience across verticals. These three pillars form a scalable, integrated ecosystem.
With convergence closing soon, Rediff is expected to cross INR 300 crore in run-rate revenue, and we are confident it will achieve INR 1,000 crore in annualized revenue within the next 12 months of closing. Meanwhile, Infibeam Avenues will continue to supplement its focus on the two powerful engines, CCAvenue Payments, one of India's most trusted payment gateways, offering deep integrations, regulatory credibility, and a strong merchant partnership across sectors. Phronetic.ai, our AI arm, focusing on building advanced reasoning models, DLLMs, and agentic AI platforms to drive intelligent automation across payment and beyond. From personalized transactions to adaptive fraud detection, Phronetic.ai is not just enhancing performance, it's redefining how AI transforms finance and infrastructure. Together, CCAvenue and Phronetic.ai represent a fusion of scale and intelligence, the future of smart, secure, and context-aware fintech.
With this vertical, we are confident of building a long-term, sustainable value for businesses, users, and our investors. Now, over to Sunil, our CFO, for the financials. Sunil, why?
Thank you, Vishwas. It's a pleasure to speak with you today and to share our FY 2026 performance, which reflects continued execution of our strategic roadmap, robust demand, and operational discipline. Let me begin with the consolidated performance. I am pleased to state that we have been continuously delivering tremendous growth quarter on quarter and year-on-year. This quarter too is no exception. Our gross revenue jumped by 72% year-on-year, reaching INR 1,280 crores as compared to INR 745 crores in Q1 FY 2025. On a sequential basis, this makes this nearly 10% growth, demonstrating consistent momentum across our business units. Our net revenue grew by 31% year-over-year and 13% quarter-over-quarter, coming in at INR 152 crores during the quarter, reflecting strong consumer engagement and deeper market penetration.
Our net take rate yet again stands beyond the 10 bps and is at 10.4 bps as against 10.6 bps quarter-over-quarter, which reflects the healthy margins, and we expect a double-digit growth in the current fiscal year in view of the geographical expansion. Our adjusted EBITDA increased by 3% year-over-year to INR 71 crores and adjusted PAT came in at INR 85 crores, which is up by 70% from the same quarter last year. This is a direct result of our commitment to efficiency and sustainable profitability. Our EBITDA margin stands at an impressive 47% and PAT margin further improved to 56%, which is up from 43%, both indicating strong margin expansion and support superior operating leverage.
Now, moving to our standalone performance, our gross revenue saw a deep jump of 76% year-over-year to INR 1,198 crores, while the net revenue rose to 13% year-over-year to INR 102 crores. While net revenue saw a 4% sequential dip, we remain confident that this is temporary and already seeing early signs of recovery. Our adjusted PAT surged at 81% year-over-year to INR 59 crores, showcasing the inherent strength of our core operations. Our adjusted EBITDA on standalone basis was stable at INR 37 crores year-over-year, and as expected, there was a sequential decline of 45%, which reflects timing of certain expenses and one-offs, not reflective of our core trend line. The standalone EBITDA margin stands at 36% and strong PAT margin at 58%, which reflects prudent cost control and sharp execution.
Looking ahead, these numbers affirm our platform-led strategy, our ability to scale efficiency, and our focus on value creation. Our dual approach, that is scaling gross revenues while improving operational leverage, has delivered strong bottom-line growth. As we move forward, we remain committed to enhancing shareholder value through innovation, disciplined growth, and strategic investment in our future. For the whole year FY 2026, we provide the following guidance. We are projecting revenue of INR 5,250 crore on the lower side and to be around INR 5,500 crore on the higher side. In case of net revenue, we are expecting in the range of INR 540 crore to INR 600 crore. In EBITDA, in the range of INR 325 crore- INR 350 crore, and PAT, we are expecting at INR 220 crore- INR 240 crore in FY 2026. I thank you once again for your continued support and trust and partnership.
I will now hand over the call to the moderator for question and answers. Thank you.
Thank you very much. We will now begin the question- and- answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Rahul Jain from Dolat Capitals. Please go ahead.
Yeah, hi. Thanks for the opportunity. Just a few questions. Firstly, on the transaction, if I understood the contours of the transaction, basically, we have valued the business that we have, the platform business that we are partnering on at INR 800 crore, out of which half of the consideration is coming against 28% additional stake in the Rediff.com business. When we bought the initial 54% stake, the value of that business was significantly lower, while this 28% stake is valued at INR 400 crore. Can you please explain the reason for a meaningful jump in the valuation of the Rediff.com stake, or is there some misunderstanding here?
No, Rahul, you're absolutely right. Basically, the first investment of Rediff that we made was in the second to the third quarter of last year. We completed the transaction end of September. This September, we finished almost one year. Within that time frame, there are two or three large opportunities that Rediff was able to work upon. The first one being the most recent, as you recollect or you may have seen in the news, Rediff has become quite a bit of a default choice for very, very large enterprises. There have been news that some of the largest companies in the country have started moving into Rediff, given the macroeconomics and certain sanctions that have started coming in. This is somewhat a global news.
Even prior to that, we had seen quite a bit of traction for companies who were earlier using enterprise email platforms of MNCs moving into Rediff, given that the platform has data localization, it's Indian-owned, Indian-controlled, and it has been around for more than a couple of decades. In some ways, we saw very good traction from a platform perspective in Rediff. The security standards are extremely relevant nowadays, and we see a lot of movement for medium and large enterprises. You'll appreciate that a lot of BFSI clients, names like HDFC Life and many others, they're all on enterprise Rediff platform. We saw quite a bit of traction there in terms of growth of the core business of the platform for Rediff. Mind you, there are more than 20,000 different companies still utilizing Rediff on Rediff E-mail Pro and others. I think that business has grown quite a bit.
The second is, and the one that I'm talking about specifically in the news, is regarding the companies working in the energy segment. You could perhaps take a look at that as well. The second thing is that Rediff has built out a complete RediffPay framework. This is a UPI-driven framework. We've received end-user approvals from NPCI. The app would be, in fact, you would have noticed that Rediffmail has been upgraded to becoming a super app within [Root to Pay]. Very shortly, pending confirmations and approvals from the regulator, we'll be launching this very shortly. We think that is a pretty massive potential in terms of the opportunity space. The third area that we've built out in the last, I don't know whether you've been using free Rediffmail. That has also been upgraded massively on a single stack.
The third one, which is the media asset, they've launched a complete media framework on television. You would imagine that eventually that will be something on the news and the money and many others that potentially have an opportunity to grow. It's actually fully AI-driven, no human. I think it's a first of its kind in the country. We think the potential of this asset is pretty significant. It's great. It's got a fabulous brand name. We had a fair valuation of this asset done, but yeah, you're right. It goes in the INR 300 crore- 400 crore range, which is maybe a factor more than what we had invested in earlier.
Right. Just to understand what you just said, is the current revenue run rate also meaningfully changed from the run rate that we started off, or is there an ugly sign which could culminate into a much larger thing? Secondly, the INR 400 crore infusion that this entity might do to us, what is the source of these funds? Were they taking it as part of the cash balance of this entity? I'm not able to figure that part out yet.
Yeah, no, great question. The entity has significant cash balance, you know, so I think it's good, but that is not the source of, you know, the INR 400 crores that potentially comes back to us. The entity has an opportunity to raise capital. There has been some inbound interest from time to time, and the entity is evaluating multiple options of fundraising. We will be able to share as and when we hear from them shortly, and we'll update the group. I think the transaction closes within the next, you know, three to nine months. Our expectation is that capital will come into our balance sheet within the next three to nine months. That's one. Your first question around, you know, what is the momentum in Rediff?
We've seen significant contracts that have come in to an extent where there are multi-million dollar contracts that Rediff has signed up on. We expect that will generate quite a bit of run rate in the coming quarter itself. We're talking about Q3 of this year, and that visibility is there. Again, I have to remind you that it's on a very small base. It is not a base where one can imagine. See, it's today also one of the top 1,000 traffic sites in the world, and 10% on local and local web and others. As of today, also, it's in the top 100 traffic sites in the country, and we still have more than 100 million registered email users. I think from a material perspective, it's fairly large and scaled up. I think from a monetization perspective, that's where we find the largest opportunity at the moment.
To your point, I think in a smaller base, yes, we have seen significant improvements. Again, it has a long way to go. When we shot that, that we'll be at a run rate of INR 300 crores in the next 12 months, we expect the run rate to be INR 1,000 crores in Rediff given the integrations.
Sorry, I missed this last part. What you're saying is that including the platform business, we should be reaching INR 1,000 crore kind of a run rate in Rediff in three months from now?
In the next 12 months, as of today, we'll be at a run rate of upwards of INR 300 crore once we integrate the platform. Within the next 12 months, we expect a run rate of INR 1,000 crore.
Right. This percentage state that we have highlighted in the question is not considering the new dilution that may happen, because the funding flow will only happen once the dilution happens?
That's true. That is true. That is correct. That does not include the dilution that may happen post Rediff raising additional capital. This has, so once this.
Yes, correctly.
This ownership reflects the moving of the platform as of some sale into Rediff.
Right. Eventually, post the fundraise, when we actually receive the money, the post-diluted equity should be more than 50% for sure, right?
Yeah, we expect it to be much, much more than that. You know, we have to.
Hello, is that 50%?
Yeah.
It still will be more than 50%. The reason of asking more than 50% is basically for me.
If it's only more than, yeah, it will not decrease, it will be more than 50%, we expect.
Fair enough. Just last one question. From the revenue growth point of view, we have seen a significant growth in the quarter. What we are seeing is a synthetic trend slightly getting disturbed for us in terms of the way we are looking at revenue. Is there something that we need to now reassess that ideally, the four-quarter revenue should trend every on a sequential basis, or is there any other pattern that should be more relevant for our business?
Rahul, on a consolidated basis, all revenue consolidates because the ownership, you know, the platform moves from, you know, Infibeam to Rediff. I don't think you would see any impact to revenue, or as a matter of fact, even net revenue on a consolidated basis. You will have a small amount of minority interest, but other than that, you won't see much of a difference from a projection perspective. Our guidance for the year is also based on consideration of that. Sorry, I didn't understand your question. You wanted to say something there.
Yeah, sorry. What I meant to say is that, see, our growth sequentially in this quarter was quite significant, double-zero show. If I look at the past pattern of our business growth, this used to be a relatively smaller quarter, and now we should trend more towards Q3, Q4. Is there a different similarity of the business now? I understand the consolidation parts are very similar to the quarter.
Yeah, that's a great question. I think there's a range that has been provided, but you're right. Typically, Q1 is a slow quarter. We have seen some good amount of acceleration in this quarter. We have seen a good amount of traction from the businesses that we signed up last year. The mix of businesses is also improving for us. We are conscious of that, and we believe that we'll still expect to see some seasonality in Q3. We're carefully watching in terms of how the business will move. I think the guidance that we have provided is a fair estimate of where we think the business may end up by the end of the year.
Sure. Thank you. That's it for now.
Thank you. The next question is from the line of [Moritz Jain from DRChoksey Finserv Pvt Ltd . Please go ahead.
Yeah, hello, sir. Good afternoon. Can you hear me?
Yes, sir, we can hear you.
Yeah, my first question is on the upcoming data center expansion. I believe we are expanding and adding more 8 megawatts of data centers. We already have two. I just wanted to know the amount we are allocating to data centers out of the RICC amount. When will this 8 MW extra capacity be commissioned? Based on the current pricing and utilization of the systems made by your internal team, what is the estimated peak revenue that we can expect from this side of the business?
Yeah, you're right. We have obviously been scaling out our artificial intelligence frameworks, which may require edge compute, and edge is meaning that we need to be closest to the consumer from that perspective. We've always followed the client. In other words, when we have a client, it's much easier to put up an edge compared to putting up an edge and then trying to find a client. I think a strategy that we are applying is that we follow where the client is. We believe that there's a lot of opportunities. Remind you that there's a lot of incentive by the government as well to promote a data center and data center frameworks in this country. Fortunately for us, in many states, we have good power connectivity. Instead of actually setting up gigawatt, we are actually going up to megawatt.
To answer your question, what portion are we using for, right? We will use some portion for the IT infrastructure within the AI setup. For the non-IT, we don't have any allocations from the rights issue perspective because non-IT will do it from approvals. Given us approvals in the company, because I'm sure you realize data center has IT components and non-IT components. For the non-IT components, we'll continue on from our approvals. The IT components, there'll be a few specific areas where we'll invest from an IT infrastructure perspective. I think that, like I said, our strategy, and we'll talk about it more in the coming weeks, but you'll see that we'll be following along for our customers and we'll be working on that front. In terms of the revenues from this, I think it should start coming up starting next quarter, which is slightly meaningful next quarter.
You'll be able to see quite a bit of that by the end of the year.
Just to follow up on that, if it's starting next quarter, where are we expecting to, you know, commission the entire 8 MW by the end of next year? Is it safe?
No, it will take us, it may take us, you know, 18 months- 24 months. We'll not commission all of that. We'll follow the client. When we have a client, we get much better ROIs, and, you know, we'll be using it for our own captive purpose because wherever in video large language models and others, see, there are two trends that are happening. One is that, you know, you can actually come up with smaller and smaller models once you have data that comes in. You may have to deploy a larger model, but then eventually, in order to optimize these models, you may come up with smaller models. There's one dimension where it becomes less and less expensive. Inference is almost becoming free and unlimited.
I think, you know, from that, we're just using models and training them and trying to build it out and then deploy it on the client. We are evaluating, and this whole structure is moving very quickly. Rather than, you know, doing a fourth model, we are very clear that our strategy is that let's build for the clients, utilize the capacity, go to the next client, utilize the capacity, and we'll keep on building out. If we get all the clients within 12 months, we'll do it, but we are going to be very cautious in terms of how we deploy the capital.
Thank you, sir, and all the best.
Thank you. The next question is from the line of Deepesh Sancheti from Maanya Finance. Please go ahead.
Hi, guys. Just a few questions. Firstly, the Phronetic.ai is positioned as a strategic growth engine. Could you share the monetization model and expected revenue mix from the AI-driven products like fraud detection and intelligent solution by FY 2028?
Sure. Phronetic.AI is going to focus on three things. You know, the video LLM models, which we call, in some ways, more than analytical, but they're actually understanding of video. Second is the reasoning models that understand what's happening within the videos. Third is a complete suite of orchestrating. It's like a full stack AI solution, which I call Agentic developer platform. Rather than humans working on it, agents can do quite a bit of work on that. Rather than getting into too much specific, I think rather than just creating a layer on top of GPT and providing it to clients, the way we think about Phronetic.AI is that you need to be a full stack AI provider. From a large language model perspective, you can have multiple. Today, you may want to use GPT, and tomorrow you may want to use Claude.
Having said that, those are the toolsets that we'll utilize. The rest of it is a full stack. When you provide that full stack to clients, you have full control over that ecosystem. Even the client will have quite a bit of control over the ecosystem. The reasoning models, reasoning decks, they'll be vertical specific. In other words, you can think of it as a reasoning model for medicine, medical is different than a reasoning model for fuel station, is a very different reasoning model. I think that that's where we think that there is an orchestration layer that has to play a role and may completely, in some ways, stake less for someone who's utilizing it.
As more and more data comes in, like I mentioned earlier, you would need to have smaller and smaller models that potentially be at the same model frequency, which is, I mean, in some ways, the size of the GPU may actually keep on, you may not need so much. That becomes a very important component for the edge compute. I think from our perspective, the relationship of being able to provide, and like I said, video has a huge number of applications. In some ways, to have GPUs that it's somewhat untapped in this country and in many other countries as well. It can be used for hospitals. We already use it for gas stations and others. It doesn't stop there because once you have that inference, then you need an agent to do quite a bit of work that humans would typically end up doing.
When we started out, we started out in one area, and then we started realizing that this requires a full stack. Very recently, we have just launched a beta version of our agentic developer platform. In other words, anyone, including yourself, can actually go onto the developer platform and create your own agent, and it will fully deploy it. You don't even need to have deploying an infrastructure and so on and so forth. In that way, it will end up doing and will practically do most of the stuff for you. We think it's pretty exciting. We haven't seen that happen anywhere in this country yet. I think we are slightly ahead of the curve. We want to continue being there. How it translates into our revenue is that, so far, we believe that there is a licensing component, licensing on each machine.
In other words, if you have an 800 and if we want to deploy it on that machine, then we'll have a licensing component to what we provide. The second component is based on number of calls, complexity, so on and so forth. We do have revenues coming in. Like I said, they're not meaningful, but they're upwards of $1 million a year. I think in the AI world, getting to that first million is also, in our view, we feel that it's an achievement. Like I said, it's not meaningful to be able to go and discuss and talk about it. We think that we can do a lot better. We can do much more than this, but it will have a component based on usage and based on licensing. It will be a combination of both, not one or the other.
Is it still, I mean, you're doing revenues of $1 million only on agentic AI platform monetization?
Not agents. It's actually DLLM, reasoning models, agent combination. We have got cloud agents and desk agents. We can get into specifics, but the whole idea is that desk agents are there. Field agents aren't there yet. You'll have a few providers, international providers that provide a desk agent. I think, you know, from our perspective, if you do a combination of reasoning and field agents, it still is a very strong competition with a full stack AI layer. We can see applications on hospitals, gas stations, defense, many others. We believe that we'll talk more about it in the coming months. We are again cautiously optimistic about it because we see that there's a lot of potential, and I think a lot of people are trying to even get to a point where they will understand what's going on.
I do believe we are ahead of the curve, but that is not a conversation. It just means that we have to work harder to actually be ahead. I think from an agent developer platform, I don't see that anyone else has built that out yet. You don't need to be a software developer to build your own agent. Let's put it this way.
Right, right. Please. About the international CRR TPV run rate, I've lost about AED 12 billion. How much did the international contribute to the net revenue this quarter? What was the YoY growth rate in that segment? You set a target of 12%- 15% international contribution to payments net revenues by FY 2028. Which markets beyond the GCC will be the biggest drivers? What's your strategy to localize operating in those markets?
Yeah, I'll tell you, you know, what our numbers are. I'll tell you a little bit about our international payments business. The international contributes to less than 10% of our overall single-digit percentage GAAP. We are not there, but we see a massive potential. Today, our major presence, if you come to think of it, will be in UAE. That is the largest overseas. We started Saudi as well. We've got more than 10 clients-1 2 clients now in Saudi operational and running. If you look at GFS and others, they've all started with us in Saudi. Yes, there is a target. Vishwas, do you want to take this, about international and?
Yes, Okay. Vishal said, I think Middle East is our core target area right now. UAE, we have grown fantastically, year-on-year growth and everything that is there. The main business of international transactions is coming through UAE right now. Some of the biggest plants in the region there, in UAE, are our merchants. Similarly, we have now grown into Saudi. Saudi required a lot of data localization and other things. We are investing, putting up the entire infra there, prime and singular, within the kingdom there. This thing will act as a moat, right, going forward. That also and the growth in that market will far exceed what we see in the UAE market. Saudi is a prime target. We are all primed up to take it to the next level. We have everything in place there. We have invested a lot in data localization and other things.
Oman is another country we are very excited about. Four of the biggest banks there are already using our platform. Some of the biggest merchants also were onboarded last quarter. Oman is growing very well. We might look at the TSP models for the other small countries within GCC, be it Qatar or Kuwait or Bahrain. Apart from that, post-visas there, of course, US and Australia are also on the horizon. We want to first finish off our domination in the Middle East market before we move there.
This quarter, we saw significant rise, a very good growth, in fact, in our revenues. The profit, the net profit has been almost, you know, I would say it's lower than last year and flat quarter on quarter also. Where do you see these, right at the margins? What's taking that hit on margins?
Yeah, actually, if you look at our profits, it's actually grown as well. It's at INR 85 crore adjusted profit. I think, you know, if you read in our media release, you know, there's a component of mark-to-market change loss, which is where I think, you know, it shows artificially depressed. If you look at, and if you remove that impact, it comes out to be INR 85.5 crore, which is 70%. In other words, you know, yes, you know, the mark-to-market has no impact to our cash flow. It's the mark-to-market impact, which is artificially depressed in the PAC number report. It's all notional. That is the impact for this quarter.
Okay. Because the reason I'm asking this also is because I still have guidance. The guidance also mentioned about INR 220-INR 240 crores, which, I mean, it's showing that it's going to be a growth of 5%- 15%. Whereas last year, it's still, you've done around INR 236 crores.
Yeah.
I just wanted to have that number in.
I think we are being appropriately conservative. We believe that we'll be doing a lot of media activities and spends on building out the Rediff platform. In other words, we've allocated quite a bit of capital to promote certain activities within Rediff, though it be platform or payment.
No, that's okay. I'm not talking about the allocation of money. I'm just talking about that, when the guidance is about, you know, the sales guidance is giving a good growth perspective. Why is that not being seen also in the profitability?
Yeah, that's exactly. This, you know, because for our vision basis, Rediff will consolidate into us, and we expect to spend a significant amount of our money on branding and marketing Rediff because we are launching RediffPay, which is a consumer app. Consumers would use this much like what they would use for Google Pay and PhonePe and Paytm and others, along with the emails. Our guidance includes the fact that we'd be spending for the next six months on promoting RediffPay and Rediff Platforms and Rediff-TV and others. We'll be depending on branding and customer acquisition, which is where we believe that we're not optimizing on profit. We are optimizing on long term.
Okay. I hope that long term also, like, you know, the profitability or ROE also will see significant growth because right now we are very, very small single-digit ROE. Both of these are going to come.
I think that our ROE is also artificially depressed because of goodwill. If you remove the goodwill from the ROE, which is the result of a merger, if you remove that goodwill component of more than INR 1,000 crore, you would perhaps get the real ROE, which will perhaps show up. You're right. I think we'll always look at profitability as we build up.
Existing, the answer about what is a goodwill factor and how much is it adjusted book value?
Goodwill is INR 1,600 crore on the books at the moment.
INR 1,600 crores. That's approximately INR 4, as a book value bound. Great. Okay. Fine. Is there any other question? I'll call back in a minute. All the very best, guys. Thank you.
Thank you. The next question is from the line of [Trisha Anandabara] from Lazarus LLP. Please go ahead.
Hello.
Yes, ma'am. Please go ahead.
Yeah. I have a question that after the INR 720 crore price issue announced, how much has been drawn and committed in Q1? What terms do we expect revenue or margin and actually exhaust within FY 2026? If we can give a clear split of how much will go towards AI marketplace development, AI infrastructure, and payment expansion.
Sure. Basically, in the letter of offer that we have published as part of the rights issue, you'll be able to see quite a bit of detail in terms of the capital raised for rights and how we expect to spend and the timelines that we expect to spend that on. Primarily, we'd be utilizing the capital in terms of growing the Rediff framework as well as being able to build out a defensible AI setup, which is what I just mentioned earlier. From the rights issue, it's partially paid. At the moment, we've closed the rights issue, and we'll be asking for the next call within six months. You'll see quite a bit of all the details that you require would be there in the letter of offer.
Okay. I have one more question. As you have announced plans for 12 more CPU AI data-driven centers, what is the expected CapEx or CAC? How do you expect to ensure high utilization rates early in the lifecycle?
See, we have been doing a lot of calculations, and we are, you know, that a lot of things are moving also from an ecosystem perspective, but we are appropriately conservative in terms of ensuring that, you know, the CapEx will give us the returns. The CapEx will typically be in terms of software developers, the IT infrastructure, software developers specifically around AI and others because you must have heard the news. They are few and far between. Given the macroeconomics, let's say we are in the U.S. as well, where some of the largest companies are showing a lot of capital around that. Like I said, we are appropriately conservative. We'll be spending on, you know, practically the whole frameworks and the software development and the developers and the IT infrastructure that comes along with it to be able to deliver solutions to the client.
Fortunately, we have, you know, a few clients who are, you know, who have already signed up with us and who are signing up with us going forward. I think to answer your question, you know, typical ROI in a data center will be, you know, anywhere between 18 months- 36 months for us. That's the target that we have in our mind. If it can happen earlier, it's even better, but that's the ROI time horizon that we think is a fair estimate, you know. That's what we target. We're not looking at a five-year ROI, because that's very hard to, because a lot of things change, you know, in terms of upgrades and so on and so forth. We are targeting 18 months- 36 months.
Is there a number like expected CapEx per size?
I'm sorry, we didn't follow your question.
Sorry. Any expected number for CapEx per size?
CapEx for?
Per size, as you have mentioned, it drives mostly for CI/CD?
CapEx per site will be, I think, you know, you can expect that it will be anywhere from $1 million- $3 million.
Okay. Okay. All right. Thank you so much.
Thank you. The next question is from the line of Satyam from Profitmart Securities. Please go ahead.
Hello. Am I audible?
Yes, sir.
Thank you for the opportunity. I have a couple of questions. The first question is, are the total TPVs declined 3% year-on-year to INR 1.93 trillion? Can you, in detail, can you detail this volume decline and whether this was due to seasonality or competition or macroeconomic factor? Also, with the MDR-based payment contribution of 72% of TPV, how much did the leads shift towards zero MDR UPI? What impact led tech reps in this quarter one? Also, how does it compare with the prior two quarters? Can you share the comparison?
Yeah, sure. If you look at the TPV, the TPV that we report has both platforms and payments. If you look at the impact of, and the platform is primarily churn in this. If you remove the impact and look at quarter-over-quarter, actually, TPV for payments has increased by more than 15%- 20% year-over-year, 2025 versus 2026 Q1. We have consciously focused, I mean, UPI is a part of it. Anything which is bill payments or others are excluded in the MDR space because there we don't get a percentage, any bill payments or others. If you look at UPI base, we've consciously tried to maintain our base. We don't encourage and use a lot of UPI-based transactions. Most of the companies in this payment space play a portfolio approach. Just to give you an example, they will price UPI, non-UPI together as competition.
They will say that you would get a flat rate of x percentage , which includes UPI, non-UPI, and other payment methods. They will play the role of higher UPI transactions so that they can give a lower percentage, if that makes sense to you. Which means that if you are a shop which processes 50% UPI and 50% non-UPI, then they will perhaps reduce the overall percentage of charge across all the payment methods. That's a little gray area for us. We think that if we have to be transparent to our merchants and be very clear that we are not charging for UPI, which is what has been mandated. While there have been different practices across, we have shied away. By design, what tends to happen is that for, quote-unquote, "gullible" merchants, they would perhaps join at a lower threshold, not realizing that they are killing up a lot.
We have shied away from that, which means that we never go to any merchant and say that we will give you a blended rate considering even the UPI transactions. That's one of the reasons why we don't have a big percentage in UPI. In fact, it goes down quarter-over-quarter for the same quarter year. When we start RediffPay, RediffPay will focus on UPI. That is what we talked about, which is that is UPI first, through pay first, everything which is, in some ways, beneficial. That is where we think that there'll be alternative sources of revenue, and we can build out quite a bit of defensible business. Like I said, our in-seat focus has always been on net revenue. If you look at net revenues, that'll be a good reflection.
You know, the net revenue has actually increased by more than 30% year-over-year. It's actually 31% year-over-year. That's the one that we think is a good metric to focus on with us. Vishwas, anything else to add?
I think you've covered it all. I think nothing much more.
Okay. My other question is, as you have mentioned earlier, waiting for the retail payment networking license, how would you obtain the license and change your revenue model? What are the realistic timelines given the current regulatory environment?
Is it legislation you're talking about in India or in the UAE or other markets? What are you talking about?
I'm talking about retail payment networking license for the international.
Yes, yes. No, for India, right? The retail payment, the MUE, which RBI had come out some time back, right? It is like a network license. Right now, RBI has not replied to the applications that were put in by the consortium. All are awaiting RBI's guidelines towards it. It's in RBI's court right now.
Yeah. Once the license gets approved, what will be the revenue model, and what will be the change in your revenue model?
We are part of a consortium. It's like building a whole network, like a Visa or a MasterCard or NPCI, which has its own card, brand, and nationalship, and all that stuff. It's a very different model. If RBI were to decide an entrance appeal, then the whole consortium will go back to sleep and then plan it out as per current time. If you're aware, this was two years back. RBI has still not acted on it. Once RBI has decided something or given us some input, then I think detailed planning and other things, how to roll out the network, will come. It's too early, too premature to say anything on that.
Okay. Thank you.
Thank you. The next question is from the line of [Mohit Daga from Aspirewise Advisors Llp]. Please go ahead.
Hello. Hi, sir. Am I audible?
Yes, you are.
Yes, sir, you are.
Okay. Thank you. Thank you for the opportunity, sir.
Sir, I want to ask that, given that media ventures can be capital intensive before monetization is key, so can you tell me what is the breakthrough horizon for Rediff-TV, and how do you see ad tech integration impacting Rediff overall margin supply?
I'll take this. Basically, Rediff-TV is in beta, it is launched. You can actually take a look at it. There is no anchor, there is no human anchor. I mean, there is no human involved in the whole process. It has multiple languages support, and it will read news and will put all multimedia together on the fly, on the run, and they're able to build out every story. We have tried and tested it, and we've inserted ads. On a variable cost basis, today it's profitable.
Okay. Sir, one more thing.
Yeah. In other words, we think that, unlike the traditional approach where you would need to build out quite a bit of the effects that you mentioned and so on and so forth, I think this one, where, again, a full stack, it's able to do a lot more, and much quicker without actually human intervening. Of course, there are original stories and so on and so forth, which Rediff News provides, which will be input into Rediff-TV. There will be some amount of podcasting and others which will potentially take up some CapEx. Yeah, I think we are not looking at CapEx which will be exceeding, you can say, $1 million.
Okay, sir.
Yeah.
Okay.
Sir, I have one more question. Sir, Rediff is entering the highly competitive U.K. market, and we have some competitive players. How will Rediff differentiate it from their peers who have deep pockets and strong regulatory resistance?
That's again a great question, something that we talk about all the time. We won't go after the horizontal. Basically, we'll go after a business layer which is sitting on top of RediffPay, which addresses a particular problem. In other words, we think that we'll go after building out automated workflows on top of RediffPay, which addresses a problem for a particular brand or a merchant. To give you an example, today, a lot of brands may not know the end user. When you think about, you know, an FMCG brand, and if you're a consumer of that brand, the brand would not know you as a consumer. Using business layers and logics and workflows on top of, you know, an existing consumption app, in fact, to an extent where quick commerce companies know the consumer much more than an FMCG company knows.
We find that there is a gap there. Using RediffPay and business workflows that we build out for specific clients, we can automate and provide that information to the brands, which is what stands at the end of the brand. We'll be working a lot on those areas. We'll not just go after. Second is that we'll integrate Pay as part of this whole communication channel. You'll be hearing a lot more from us in the coming months.
Okay. That's awesome. Thank you so much, sir, for the opportunity.
Thank you. The next question is from the line of Kaushik Poddar from KB Capital Markets Pvt Ltd. Please go ahead.
This RediffPay, will it be in Google Pay plus plus?
If you consider workflows on top of Google Pay, yes, it will be. Primarily, some of the largest UPI players, they don't have, or I would not say they don't have, they've chosen not to build out workflows given whatever conflicts which are out there in the markets. We believe that building out specific workflows on top of Pay will be the way to go because what you do is, if you look at some of the FMCG brands, they do thousands of crores a year, which is still either in cash or non-UPI based. That is a market to go on because you are enabling commerce. You take what is existing and make it part of Pay. I think they would like it because the use of cash is gone in the system.
There is no additional charge or anything that they even have to pay for that. We believe that that would be our approach, which is create business layers on top of UPI and go after specific very, very large clients. The larger the client, the better, because finally, consumers will be attached to a particular product. FMCG is just one simple example. There'll be more industries like this. We think that we'll go with a slightly more verticalized approach rather than just going horizontally. We do believe that we've got something unique, which is people come to us due to mail. It's a daily habit. You'll have to come and check. When you have millions of email users, we have a way to reach out to them. We don't need to force them to our platform. They already come to our platform.
We just need to find out more mechanisms of what they will do using RediffPay.
How are you monetizing Rediff, sir?
Enterprise version of Rediff is being monetized. It is a charged service, much like what you would do to pay Google and pay Outlook and others. Right. The enterprise version is a paid service. Right. Its free email is ad supported.
Is it ad supported? Is it?
It is.
Okay. Okay. Is Rediff in the black? Rediff has a standalone entity?
Last year, for the first time, it came in black. Historically, the burn's about $1 million.
From the existing operation, can the blackness improve from the existing operation itself? You are, of course, adding on various other things. That is a separate thing. Do you see, as the volume goes up, the existing operation itself can bring in a lot of profit?
Yes. I think that, hard to say before we actually do it, but I think, you know, just so that you know, it is pretty massive scale. In other words, you know, we send about half a billion to a billion emails every day. It's scaled out, price tested, been around for more than a decade. We are fully indemnized. All our data is residing only in this country, no other country. I think from all those parameter perspectives, there's a very large opportunity. Given the macroeconomic environment, I think it becomes even, it's farfetched somewhat. I think that there's a pretty large opportunity to do this. Since we took up the company last year, there's actually even macro-monthly engineering that happened because, like I said, as a company, we want to focus on deep technology. I think there are a lot of AI components that we've added to enterprise email.
Customers
Clients now, they can have something called our team, which is the Rediff team, that will do a lot of things for you, on the fly. Pretty much like what other companies would offer us too. I think for us, you know, we think that to answer your question, I think Rediff has a significant brand and value that when it's scaled up, we just have to find more ways and mechanisms to monetize on that.
In terms of the divestment of a part of the equity, are you looking for a private equity or a strategic partner? If you can, say a few words on that.
Sure. Of course, the Rediff board will decide on the exact path forward, but it could be a combination thereof.
Okay. Okay. Personally, I feel that Rediff, when you have bought it at $100, that itself was a very low valuation. That itself was a very, I'm sure you must be betting on it. Hopefully, whatever you are trying to do, add value, will take it to further levels.
Yeah, that's the hope.
That's the way I look at it.
Yeah. That's the hope. I think there could be a multiplier. That's the hope, again.
Right.
We need to invest in your time. You have to obviously prove it to whoever is a new equity partner that is interested.
That's true. That's true.
Yeah.
Thank you. Thank you. Thanks for letting me, thanks for this information.
Sure. Thank you.
Thank you.
Ladies and gentlemen, due to time constraints, this would be our last question. I would now like to hand the conference over to the management for closing comments.
I'd like to thank everyone on the call. Thank you for your continued belief in our vision. We believe this is just the beginning. We look forward to building the future together. Thank you.
Thank you. On behalf of Go India Advisors, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.
Thank you.