Infibeam Avenues Ltd (NSE: INFIBEAM) Q1 2026 Earnings Call dated Aug. 08, 2025
Corporate Participants:
Unidentified Speaker
Rajat Gupta — Analyst
Vishal Mehta — Chairman and Managing Director
Vishwas Patel — Joint Managing Director
Sunil Bhagat — Chief Financial Officer
Analysts:
Unidentified Participant
Rahul Jain — Analyst
Mohit Jain — Analyst
Deepesh Sancheti — Analyst
Satyam Badera — Analyst
Kaushik Poddar — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Infibeam Avenues Limited Q1FY26 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 touchstone 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.
Rajat Gupta — Analyst
Yeah. Thank you. Amshad. Good evening everyone and welcome to Infibeam Avenues Limited earnings call to discuss the Q1FY26 results. We have on the call with us today Mr. Vishal Mehta, Chairman and Managing Director. Mr. Vishwas Patel, Joint Managing Director and. Mr. Sunil Bagat, Chief Financial Officer. Also joining us on the call today is Mr. B. Ravi who is advising Infidine on corporate and financial strategy as an independent consultant. We 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 risk 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 and A. Thank you. And over to you sir.
Vishal Mehta — Chairman and Managing Director
Thank you, Rajat. 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 infeebeam journey. From the beginning at Infibeam we’ve built our success on two core principles. Deep technology and strategic foresight. And 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 now. Over the past few years we’ve built a scaled category leading products. For example, with CC Avenue 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. And now with phrenitic AI we’ve stepped boldly in the AI frontier. But we see that the market is also evolving and so are the customer expectations. Today’s businesses, whether they are startups and 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? And our answer to that is yes and and the way forward is through convergence. Now 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. So let’s look at the flow for an example.
We believe that payments fuels commerce, commerce feeds into CRM and operations and operations will drive productivity and AI that we are investing in will empower every step of the chain. When these elements exist in silos, you get friction, but when they converge, we believe you’ll get flow. The result will be a better user experience, higher retention, richer data intelligence, lower cost to serve, and a massive opportunity to cross sell and upsell. So this isn’t about diluting the focus, it’s about amplifying the impact. Today, infeedbeam Avenue’s board has approved a strategic transfer of the E commerce platform infrastructure business to redif.com for 800 crores.
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. And here’s why the combination makes powerful sense. First, the framework fit RedFS enterprise platforms, RedIF Mail, Redif Pay for Consumers and the growing REDF1 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. Redif has already got long standing relationships with thousands of businesses across email, communications and media.
This gives us an immediate access to trusted distribution channels perfect for bundling, upselling and scaling quickly. Third, the power of the brand. Redif’s legacy and credibility, especially both in Indian as well as global markets, bring increased visibility and resonance to our platform and finally, strategic oversight. Even as we transition the platform under the REDF umbrella, Infibeam retains more than 80% equity control of REDF. 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 CC Avenue payments in AI infrastructure. And the second one is Rediff, where we are now unlocking the full potential of EE 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 integrations, ecosystem thinking and unified customer experience.
With platform convergence we are now positioned to build end to end ecosystems. That means 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 to for strategic acceleration.
And 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. Now with that I will pass on the discussion to Viswas on business updates. Vishwas, over to you.
Vishwas Patel — Joint Managing Director
Thank you Visal. Good evening everybody on the call. Before I begin, I want to express our deepest gratitude to all our investors for the successful rights issue. 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 one. This includes Redip1, an enterprise E commerce suite designed for large and mid sized businesses to manage their full digital life cycle. From storefronts and hosting to analytics and CRM.
Drilldip platforms will offer a fully full SaaS powered business ecosystem. This is made by us Indians in India, hosted in India and complied with all our local Indian laws. The second is the Redip tv. Our newest and the most exciting venture. Redif TV is India’s first fully AI driven content platform creating, enabling, creation, curation and monetization at scale with a robust ad 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 Pay a future ready platform designed to scale with the next wave of innovation be it upi, stablecoin, CBDC or Tokenized Ecommerce.
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 300 crores in run rate revenues and we are confident it will exceed 1000 crores in annualized revenue within the next 12 months of closing. Meanwhile, Infim Avenues will continue to sharpen its focus on the two powerful engines. CC Avenue Payments one of India’s most trusted payment gateways offering deep integrations, regulatory credibility and a strong merchant partnership across sectors. Pronetic AI our AI arm focusing on building advanced reasoning models, VLLMs and agentic AI platforms to drive intelligent automation across payments and beyond.
From personalized transactions to adaptive fraud detection, Phonetic is not just enhancing performance, it’s redefining how AI transforms financial infrastructure. Together, CC Avenue and Phonetic AI represents the fusion of scale and intelligence, the future of smart, secure and context aware fintech. With this verticals 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 Bhaik.
Sunil Bhagat — Chief Financial Officer
Thank you Vishwa sir. It’s a pleasure to speak with you today and to share our quarter one FY26 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 two is no exception. Our gross revenue jumped by 72% year on year reaching to INR12.80 crore as compared to 745 crore in quarter one FY25. On a sequential basis this makes a nearly 10% growth demonstrating consistent momentum across our business unit.
Our net revenue grew by 31% year over year and 13% quarter over quarter coming in at 152 crore during the quarter reflecting strong consumer engagement and deep deeper market penetration. Our net take rate yet again stands beyond the 10bps and is at stood at 10.4bps as against 10.6bps quarter over quarter which reflects the healthy margins and we expect a double digit growth in the current fiscal. In view of the geographical expansion our adjusted EBITDA increased by 3% year over year to 71 crore and adjusted PAT came in at rupees 85 crore which is up by 70% from the same quarter last year.
This is 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% which both indicating strong margin expansion and support superior operating leverage. Now moving to our stand alone performance. Our gross revenue saw a big jump of 76% year over year 1198 crore while the net revenue rose to 13% year over year 202 crore while net revenue show a 4% sequential dip. We remain confident that this is temporary and already see early signs of recovery. Our adjusted PAT surged at 81% year over year to rupees 59 crore showcasing the inherent strength of our core operations.
Our adjusted EBITDA on standard basis was stable at rupees 37 crore 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. So 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 and 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 full year FY26 we provide the following guidance. We are projecting revenue of 5250 crore in the lower side and 5500 crore on the higher side. In case of net revenue, we are expecting in the range of 540 crore to 600 crore in EBITDA in the range of 325 crore to 350 crore and pet we are expecting at rupees 220 crore to 240 crore in FY26. 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.
Questions and Answers:
operator
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 answers 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 Daulat Capital. Please go ahead.
Rahul Jain
Yeah, hi. Thanks for the opportunity. Just a few questions. Firstly on the transaction, if I understood the controls of the transaction, basically we have valued the business that we are, the platform business that we are passing on at 800 crore out of which half of the consideration is coming against 28% additional stake in the relief business. So when we bought the initial 54% stake, the value of that business was significantly lower while this 28% stake is valued at 400 crores. So can you please explain the reason for a meaningful jump in the valuation of their relief stake or is there some misunderstanding here?
Vishal Mehta
No, Rahul, you are absolutely right. So basically REDF was the first investment of REDF that we made was, you know, in the second to the third quarter of last year. We completed the transaction end of September. So this September we finish almost one year. And within that time frame there are two or three large opportunities that REDF is able to work upon. First one being the most recent. As you recollect or you may have seen in the news, REDF has become quite a bit of default choice for very, very large enterprises. There have been news that some of the largest companies in the country have started moving into REDF given the macroeconomics and certain sanctions that have started coming in.
And you know, this is somewhat a global news but 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 REDF 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. So in some ways we saw very good traction from a platform perspective in Redif. The security standards are extremely relevant nowadays and we see a lot of movement for medium and large enterprises. You would have, you’ll appreciate that a lot of BFSI clients, names like HDFC Life and many others, they’re all on enterprise Redif platform.
So we saw quite a bit of traction there in terms of growth of the core business of the platform for Redif. Mind you, there are more than 20,000 different companies still utilizing REDIF on Rediff, Email Pro and others. So I think that business has grown quite a bit. The second is the one that I’m talking about specifically in the news is regarding the company’s working in the energy segment. So you could perhaps take a look at that as well. The second thing is that Redif has built out a complete REDF pay framework. This is a UPI driven framework.
We’ve received the principal approval from npci, the app would be. In fact you would have noticed that REDF Mail app has been upgraded to becoming a super app which includes pay and very shortly pending confirmations and approvals from the regulator. We’d be launching it very shortly. We think that is a pretty massive potential in terms of the opportunity space and the third area that we’ve built out in the last, I don’t know whether you’ve been using free REDF email that has also been upgraded massively on a single stack and the third one, which is the media asset and we’ve launched a complete media framework on television.
So you would imagine that eventually that will be something under Ref News, under Money and many others that potentially have an opportunity to grow. It’s actually fully AI driven, no humans, and it’s the first of its kind in the country. So we think the potential of this asset is pretty significant. Great. It’s got a fabulous brand name and you know, we, we had a fair valuation of this asset done. But yeah, you’re right, it goes in the 300 to 400 crore range, you know, which is, you know, maybe, you know, a factor more than what we had invested in earlier.
Rahul Jain
Right. And just to understand what you just said. So is the current revenue run rate also meaningfully changed from the run rate that we started off or it’s just an early sign which could culminate into a much larger thing. Secondly, the 400 crore infusion that this entity might do to us. What is the source of source of these fundamental days sitting in as part of the cash balance of this entity? Not able to figure that part as well?
Vishal Mehta
Yeah, no, great question. So the entity has significant cash balance, you know, so I think it’s good. But that is not the source of, you know, the 400 crores that potentially comes back to us. So the entity has an opportunity to raise capital. There have been some inbound interest from time to time and you know, the entity is evaluating multiple options of fundraise. But we will be able to share as and when we hear from them shortly and we’ll update the group. But I think the transaction closes within the next, you know, three to nine months.
So our expectation is that, you know, that capital will come into our balance sheet within the next three to nine months. So that’s one your first question around what is the momentum in Rediff? We’ve seen significant contracts that have come in to an extent where they are multimillion dollar contracts that REDF has signed up on. We expect that that will generate quite a Bit of run rate in, in the coming quarter itself we’re talking about Q3 of this year and you know, so that you know, visibility is there, you know. But again I have to remind you that it’s on a very small base.
So it is not a base where one can imagine see it’s today also one of the top 1,000 traffic site in the world as per similar web and others. And as of today also it’s in the top 100 traffic site in the country and we still have more than 100 million registered email users. So I think from a scale 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. So to your point, I think on a smaller base, yes, they’ve seen significant improvements but again it has a long way to go.
So when Vishwa said that we’ll be at a run rate of 300 crores, you know, in the next 12 months we expect the run rate to be a thousand crores in redf given the integrations.
Rahul Jain
Yeah, sorry, I missed this last part. What you are saying is that including the platform business we should be reaching thousand crore kind of a run rate in Rediff in three months from now.
Vishal Mehta
No, in the next 12 months. So as of today we’ll be at a run rate of upwards of 300 crores once we integrate the platforms and within the next 12 months we expect a run rate of, you know, 1,000 crores.
Rahul Jain
Right. And this percentage, take that we have highlighted in the press release, this is, this is not considering the new dilution that may happen because the fund inflow will only happen once the dilution happens.
Vishal Mehta
That’s true. That is true. That is correct. So that does not include the dilution that may happen post REDF raising additional capital. This.
Rahul Jain
Yeah, sorry, please.
Vishal Mehta
Ownership reflects the moving of the platform as a slump sale into redf.
Rahul Jain
Right. And eventually post the fundraise when we actually receive the money, the post diluted equity should be more than 50% for sure. Right?
Vishal Mehta
Yeah, we expect it will be much, much more than that. But you know we have to lower. Than 80 but
Rahul Jain
yeah, but still will be more than 50. There’s a reason of asking. More than 50 is basically significantly more than.
Vishal Mehta
Yeah, it will be significantly more than 50 we expect.
Rahul Jain
Fair enough. Just last one question. From the revenue growth point of view, we have seen a significant growth in the quarter. So what we are seeing is a seasonality trend slightly getting disturbed for us in terms of the way we are Booking revenue. So is there something that we need to now reassess that how ideally the fourth quarter revenue should we should trend every on a sequential basis or is there any other pattern that should be more relevant for our business?
Vishal Mehta
Rahul, on a consolidated basis all revenue consolidates because the ownership, the platform moves from infi to redif. So 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. And our guidance for the year is also based on consideration of that. Sorry, I didn’t understand your question. You wanted to say something then?
Rahul Jain
Yeah, yeah, sorry. What I meant to say is that our growth sequentially in this quarter was quite significant. Double digit growth. And if I look at the past pattern of our business growth, this used to be relatively a smaller quarter and our we should Trend More towards Q3, Q4. So is there a different seasonality of the business now? I understand the consolidation part. Everything will be part of it.
Vishal Mehta
Yeah. So that’s a great question. I think you know, 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. You know, we have seen a good amount of traction from the businesses that we signed up last year. You know, the mix of business is also improving for us. You know, we are conscious of that and we believe that, you know, we’ll still expect to see some seasonality in Q3. You know, so we’re carefully watching, you know, in terms of how the business will move.
But I think you know, the guidance that we have provided is, is a fair estimate of where we think the business may end up by the end of the year.
Rahul Jain
Sure. Thank you. That’s it from my side.
operator
Thank you. The next question is from the line of Mohit Jain from Dr. Choksee Finserve Private Limited. Please go ahead.
Mohit Jain
Yeah, hello sir, Good afternoon. Can hear me?
operator
Yes, we can hear you.
Mohit Jain
Yeah. So my first question is on the upcoming data center expansion. I believe we are expanding and adding more 8 megawatt of data centers. We already have two. So I just wanted to know amount we are allocating to data center out of the right issues amount and when will this 8 megawatt extra capacity will be commissioned and based on the, you know, current pricing and utilization assumptions made by your internal team, what is the estimated peak revenue that we can expect from this side of the business.
Vishal Mehta
Yeah. So you’re right. We have, you know, we have obviously 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. And 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. So I think the strategy that we are applying is that we follow where the client is and we believe that there’s a lot of opportunities, you know, remind you that, you know, there’s a lot of incentive by the government as well to promote data center and data center frameworks in this country.
And fortunately for us, you know, in many states we have good power connectivity. So instead of actually setting up gigawatt, we are actually going after megawatt. So to answer your question, you know, what portion are we using for rights? You know, we will use some portion for the IT infrastructure within the AI setup. For the non it, we don’t have any allocation from the rights issue perspective because non IT will do it from accruals. We have enough accruals in the company will, because I’m sure you realize data center has IT components and non IT components.
And so for the non IT components will continue up from our accruals, the IT components, there’ll be a few specific areas where we will invest, you know, from IT infrastructure perspective, you know, and so I think that, you know, but like I said, our strategy, and we’ll talk about it more in the coming weeks, but you’ll see that, you know, we’ll be following a lot of our customers and we’ll be working on that, on that front. In terms of the revenues from this, I think it should start coming up, starting next quarter, which is slightly meaningful.
That’s what we meant. We’ll not segment it out, but we will definitely, you know, you’ll be able to see quite a bit of that by the end of the year.
Mohit Jain
Just to follow up on that if it’s starting next quarter. So when are we expecting to, you know, commissioning the entire 8 megawatt by the end of next year?
Vishal Mehta
No, it will take us, it may take us, you know, 18 to 24 months. We will not commission all of that. We will follow the client. So when we have a client, we get much better ROIs. And, you know, we’d be using it for our own captive purpose because wherever in video, large language models and others. See, there are two trends which are Happening one is that you know, you can actually come up with smaller and smaller models once you have data that comes in. So you may deploy a larger model, but then eventually in order to optimize these models, you may come up with smaller models.
And so there is one dimension where it becomes less and less expensive. Inference is almost becoming free and unlimited. So I think you know from that with the reasoning models and training them and trying to build it out and then deploy it on the client. So we are evaluating and this whole structure is moving very quickly. So rather than doing a postmortem, 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. And 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 that capital.
Mohit Jain
All right, thank you sir and all the best.
operator
Thank you. The next question is from the line of Deepesh Sancheti from Manya Finance. Please go ahead.
Deepesh Sancheti
Hi guys, just a few questions. Firstly, the fanatics 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 routing by FY28?
Vishal Mehta
Sure. So Fornetic AI it’s going to focus on three things. You know, the video LLM models which we call, you know, in some ways more than analytics but actually understanding of videos. Second is the reasoning models that understands what’s happening within the videos. And third is a complete suite of orchestration. It’s like a full stack AI solution which I call agentic developer platform. So rather than humans working on it, agents can do quite a bit of work on that. And rather than getting to too much specifics, we think that these are the three areas they are super connected.
I think rather than just creating layer on top of GPT and providing it to clients, the way we think about phrenitic is that you need to be a full stack AI provider and you know, 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. But having said that, those are the tool sets that we’ll utilize. Having said that, rest of it is a full stack and when you provide that full stack to clients you have full control over that ecosystem and even the client will have quite a bit of control over the ecosystem and the reasoning models, we think that they’ll be vertical specific.
So in other words you can think of it as a reasoning model for 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 orchestration layer that has to play a role and be completely in some ways stateless for someone who’s utilizing it. And as more and more data comes in, like I mentioned earlier, you would need to have smaller and smaller models that potentially give the same amount of efficiency, which is, I mean, in some ways the size of the GPU may actually keep on.
You may not need so much and that becomes a very important component for the edge compute. So I think from our perspective, the relationship of being able to provide and like I said, video has huge number of applications in some ways to us, we feel that it’s somewhat untapped in this country and in many other countries as well. So it can be used for hospitals, we already use it for gas stations and others. But 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.
And so when we started out, we started out in one area and then we started realizing that this requires a full stack. And so very recently we’ve just launched the 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. And, and in that way it will end up doing and will practically do most of the stuff for you. So we think it’s pretty exciting and we haven’t seen that happen in anywhere in this country yet.
So I think, you know, 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, you know, licensing on each machine. So in other words, if you have an 800 and if you want to deploy it on that, on that machine, then we’ll have a licensing component to what we provide. And then the second component is, you know, based on, you know, number of tokens calls, complexity, so on and so forth. So we do have, you know, revenues coming in.
Like I said, they’re not meaningful, but they’re upwards of a million dollars a year. And I think in the AI world getting to that first million is also in our case, we feel that it’s an achievement, but 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 and it would be a combination of both, not one or the other.
Deepesh Sancheti
I mean we’re doing revenues of 1 million on only on agent monetization, not agent.
Vishal Mehta
It’s actually PLLM reasoning model and agent combination. So we’ve got field agents and desk agents. So and we can get into specifics but the whole idea is that desk agents are there, field agents aren’t there yet. You’ll have few providers, international providers that provide desk agents. But I think, you know, from our perspective, if you do a combination of reasoning and field agents, it is a very strong combination with a full stack AI layer and we can see applications on hospitals, gas stations, defense, many others. And we believe that we’ll talk more about it in coming months.
But 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 isn’t, that is a, that is not a consolation. It just means that we have to work harder to actually be way ahead. And I think from agent developer platform, I don’t see that anyone else has built that out yet. So you don’t need to be a software developer to become to build your own agent.
Let’s put it this way. Right, Great.
Deepesh Sancheti
Right. Great. And about the international TPV run rate has crossed about 12 billion. How much did the international contribute to the net revenue this quarter? And what was the Y and Y growth rate in that segment? Also you set a target of 12 to 15% international contribution to payments net revenues by FY28. Which markets beyond the GCC will be the biggest drivers. And what’s your strategy? Strategy to localize offerings in those markets.
Vishal Mehta
See, I’ll tell you, you know what our numbers and Vishwas will tell you a little bit about our international payments business. International contributes to less than 10% of our overall single digit percentage yet. So 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 geography. We started Saudi as well. We’ve got more than 10 to 12 clients now in Saudi operational and running. So if you look at vfs and others, they’ve all started with us in Saudi.
And yes, there is a target Vishwas you want to take this about international?
Vishwas Patel
Yes.
Vishal Mehta
Okay.
Vishwas Patel
So as Vishal said, I think Middle east is a core target area right now. So UAE we have grown fantastically year on year growth and everything that is there. But the main business of international transactions is coming through UAE right now. Some of the biggest clients in the region there in UAE are our merchants. Similarly we have now grown into Saudi. Saudi required lot of data localization and everything. So we are investing, putting up the entire infra there primary secondary within the kingdom there this we think we act. As a moat right. Going forward. So that also and the growth in that market will far exceed what we see in UAE market. So 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. So four of the biggest banks there are already using our platform. Some of the biggest merchants also were onboarded last quarter. So 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, this is there of course US and Australia also on the horizon. But do you want to first finish off our domination in the Middle east market before we move there?
Deepesh Sancheti
Okay. And this quarter we saw a significant rise, a very good growth in fact in our revenues. But 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. So where do you see these? Why does the margins, what’s taking that hit on margins?
Vishal Mehta
See actually if you look at our profits it’s actually grown as well. It’s at 85 crores adjusted profit. I think you know there’s a, if you read in our media release, you know there’s a component of mark to market gain loss which is where I think you know it shows artificially depressed. But if you look at and if you remove that impact it comes out to be 85.5 crores which is 70%. So in other words, you know. Yes, you know the mark to market has no impact to our cash flow but it’s the mark to market impact which is artificially depressing.
The the pat number reported this, it’s all notional. It’s. That is the impact for this quarter.
Deepesh Sancheti
Because the reason I’m asking this also because of the guidance. The guidance also mentioned about 220 to 240 crores which it’s showing that it is going to be a growth of 5 to 15%. But whereas last year itself we have done around 236 crores. Just wanted to have that number.
Vishal Mehta
I think we are, we are being appropriately conservative. We believe that we’ll be doing a lot of media activities and spends on building out the REDIF platform. So in other words, you know, we’ve allocated quite a bit of capital to promote, you know, certain activities within Driff though it be platform or pay.
Deepesh Sancheti
That’s okay. I mean 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 not that not being seen also in the profitability?
Vishal Mehta
Yeah, that’s exactly. So this in consolidated basis REDF will consolidate into us and we expect to spend, you know, significant amount of, you know, our monies on branding and marketing. Redf because we are launching REDF Pay, which is a consumer, you know, app and you know, consumers would use it much like what they would use for, for Google Pay and Phonepe and PAYTM and others along with emails and so you know, our guidance includes the fact that we’d be spending for the next six months on promoting REDF Pay and Redif platforms and Redif TV and others.
So we’d be spending on branding and customer acquisition which is where we believe that we’re not optimizing on profit, we are optimizing on long term. Okay. Okay.
Deepesh Sancheti
So I hope that long term also. Like you know, with profitability, ROE also will see significant growth because right now we are very, very small single digit ROEs.
Vishal Mehta
I think that we are. Our ROE is again also artificially depressed because of goodwill. So if you remove the goodwill from the ROE which is the result of a merger, so if you remove that goodwill component of more than a thousand crores you would perhaps get the real ROE which will perhaps show up. But you’re right, I think we’ll always look at profitability as we build up.
Deepesh Sancheti
If you can just mention about what is a goodwill factor and how much much will be of the adjusted book value be.
Vishal Mehta
Goodwill is 1600 crores on the books at the moment.
Rahul Jain
1600 crores. So that’s approximately 4 rupees as a book value gone.
Deepesh Sancheti
Great. Okay, fine. Is there if there’s any other question, I’ll fall back in line. All the very best guys. Thank you.
operator
Thank you. The next question is from the line of Krisha Anandapara from slp. Please go ahead.
Unidentified Participant
Hello.
operator
Yes ma’. Am. Please Go ahead.
Unidentified Participant
Yeah, I have a question that of the 700 crore right issue amount, how much has been drawn or committed in Q1 and what tangible like revenue or margin impact do we expect within FY26? If you can give a clear split of how much will go towards AI marketplace development, AI infrastructure and payment expansion.
Vishal Mehta
Sure. So basically in the letter of offer that we have published as part of the rights issue, you’d be able to see quite a bit of detail in terms of the capital raise for rights and how we expect to spend and the timelines that we expect to spend that on. But primarily we’d be utilizing the capital in terms of growing the REDF framework as well as being able to build out a defensible AI setup, which is what I just mentioned earlier. So from the rights issue, it’s partially paid. So you know, at the moment we’ve closed the rights issue and we’ll be asking for the next call within six months.
But yeah, you’ll see quite a bit of all the details that you require would be there in the letter of offer.
Unidentified Participant
All right, I have one more question. As you have announced plans for 12 small cities, AI data driven centers, what is the expected CAPEX for size and how do you intend to ensure high utilization rate early in the life cycle?
Vishal Mehta
See, we have, we’ve been, 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. Now 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. And given the macroeconomics that we hear in the US as well, where some of the largest companies are throwing a lot of capital around that.
So like I said, we are appropriately conservative. We’ll be spending on practically the whole frameworks in the software development, the developers and the IT infrastructure that comes along with it to be able to deliver solutions to the clients. And fortunately we have a few clients who have already signed up with us and are signing up with us going forward. So I think to answer your question, typical ROI in a data center will be anywhere between 18 to 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, and that’s what we target. We are 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. So we are targeting 18 to 36 months. Sorry, we didn’t follow your question.
Unidentified Participant
Any expected number for capex for site?
Vishal Mehta
Capex 4.
Unidentified Participant
As you have mentioned
Vishal Mehta
Capex per site will be, I think, you know, you can expect that it’d be anywhere from 1 to 3 million dollars.
Unidentified Participant
Thank you so much.
operator
Thank you. The next question is from the line of Satyam from Profit Mart Securities. Please go ahead.
Satyam Badera
Am I audible?
operator
Yes sir.
Satyam Badera
Thank you for the opportunity. I have a couple of questions. The first question is the total TPV declined 3% year on year to 1.93 trillion rupees. Can you in detail, can you detail this volume decline and whether this was. Due to seasonality or competition or microeconomic factor. Also with the MDR best payment contribution of 72% of TPV, how much did the mix shift towards? 0MDR UPI and what impact net tech take rates in a quarter? 1. Also how does it compare with the prior 2 quarters? Can you share the comparison?
Vishal Mehta
Yeah, sure. So if you look at the tpv, you know, the TPV that we report has both platforms and payments. So if you look at, you know, the impact of in the platform is primarily gem in this. So if you remove the impact and look at quarter over quarter, actually TPV for payments has increased by you know, more than 15, 20%. You know, year over year, 25 versus 26 Q1 and you know, we’ve consciously focused, I mean UPI is a part of it. So you know, anything which is bill payments or others are excluded in the MDR piece, you know, because there we don’t get a percentage any bill payments and others.
But if you look at UPI based, we’ve consciously, you know, try to maintain or you know, we don’t encourage and use a lot of UPI based transactions. Most of the companies in this payment space, they 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. And 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 and charge across all the payment methods. That’s a little gray area for us. We think that 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. So while there have been different practices across, we have shied away. So 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 giving 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 transaction. So 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. But when we start Redif Pay, Redif Pay will focus on upi. And that is what we talked about, which is that is UPI first, RuPay first. Everything which is, you know, in some ways beneficial. That is where we think that there will be alternative sources of revenue and we can build out quite a bit of defensible business.
But like I said, our in fee focus has always been on net revenue. So if you look at net revenues that will be a good reflection. You know, the net revenue is actually increased by more than 30% year over year. It’s actually 31% year over year. So that’s the one that we think is a good metrics to focus on with us. And Vishwas, anything else to add?
Vishwas Patel
I think you’ve covered it all. I think nothing much more.
Satyam Badera
Okay. Another 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 and what are the realistic timeline given the current regulatory environment?
Vishwas Patel
Talking about in India or in UAE or other markets. What you talked about.
Satyam Badera
I’m talking about Retail payment networking license for international. Yes.
Vishwas Patel
Yes. No, for India. Right. The retail payment, the NUE which RBI had come out sometime back. Right. Which is like a network license. So right now RBI has not replied to the applications that were put in by the consortiums. All are waiting RBI guidelines towards it. So it’s an RBI score right now?
Satyam Badera
Yeah. Once the license get approved, what will be the revenue model and what will the change in your revenue model so.
Vishwas Patel
That we are part of a consortium. It’s like building a whole network like a visa or a MasterCard or MPCI. Right. Which. Which has its own card brand and national switch and all that stuff. So it’s a very different model. So if RBI were to Decide an invincible, then the whole consortium will get at its place and then plan it out as per current stand. If you are aware this was two years back, RBI still not acted on it. Once RBI has decided something or given us some info then I think detailed planning and other things how to roll out the network will come in too early to premature to see anything on that.
Satyam Badera
Thank you.
operator
Thank you. The next question is from the line of Mohit Daga from Aspirewise Advisors llp. Please go ahead.
Unidentified Participant
Hello. Hi sir. Am I audible?
Vishal Mehta
Yes, you are.
operator
Yes sir, you are.
Unidentified Participant
Thank you for the opportunity sir. So I want to ask that given that media ventures can be capital intensive before monetization kicks in. So can you tell me what is the breakeven horizon for Reddit TV and how do you see ad tech integration impacting Reddit overall margin profile?
Vishal Mehta
So I’ll take this. Basically Red FTV is in beta, it is launched, you can actually take a look at it. There is no anchor, there is no, no human anchor. I mean there is no human involved in the whole process. It has multiple languages support and it will read news, it will put all multimedia together on the fly, on the run and they’re able to build out every story. And we have tried and tested it and we’ve inserted ads and on a variable cost basis today it’s profitable. Yeah. In other words, we think that unlike the traditional approach where you would need to build out, you know, quite a bit of capex that you mentioned and so on and so forth, I think this one, you know, is, you know, again a full stack.
It’s able to do a lot more and much quicker without actually humans getting involved. Course there are original stories and so on and so forth which REDF News provides, which will be input into RedF TV and there’ll be some amount of podcasting and others which will potentially take up some sub capex. But yeah, I think, you know, we are not looking at, you know, capex which will be exceeding, you know, you can say a million dollars. Yeah.
Unidentified Participant
Sir, I have one more question. So sir, Reddit is entering a highly competitive market, UK market and we have their dominated players. So how will Rediff differentiate it from their peers who has deep pockets and strong regulatory relationship?
Vishal Mehta
That’s again a great question, something that we talk about all the time. We won’t go after the horizontals, basically we’ll go after a business layer which is sitting on top of RedFP, which addresses a particular problem. So in other words, we think that we’ll go after building out automated Workflows on top of Redis P 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. So when you think about an FMCG brand and if you’re a consumer of the brand, the brand would not know you as a consumer.
And using business layers and logics and workflows on top of an existing consumption app, in fact to an extent where quick commerce companies know the consumer much more than FMCG company knows and we find that there is a gap there. And using REDF pay and business workflows that we build out for specific clients we can automate and provide that information to the brands which is what stands the test of time. So we’ll be working a lot on those areas and so we’ll not just go after and second is that we’ll integrate be as part of this whole communication channels.
You’d be hearing a lot more from us in the coming months.
Unidentified Participant
Thank you so much.
operator
Thank you. The next question is from the line of Kaushik Podar from KB Capital Markets Private Limited. Please go ahead.
Kaushik Poddar
So this ready pay, will it be. Google Pay plus plus.
Vishal Mehta
If you consider workflows on top of Google pay, yes, it will be primarily some of the largest UPI players. They don’t have. 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 market. So 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 and that is a market to go on because you’re enabling commerce.
You take what is existing and make it part of pay. And I think they would like it because the use of cash is gone in the system and there is no additional charge or anything that anyone has to pay for that. So 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. And the larger the client the better because finally consumers will be attached to a particular product. So FMCG is just one simple example. There’ll be more industries like this and 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. And so when you have millions of email users, we have a way to reach out to them. We don’t need to get them to our platform, they already come to our platform. We just need to find out more mechanisms of what they will do. Using RediSpay.
Kaushik Poddar
Are you monetizing Rediff mail?
Vishal Mehta
Enterprise version of Rediff is being monetized. It is a charge service, much like what you would do to pay Google and pay Outlook and others. The enterprise version is a paid service. Right. The free email is ad supported.
Kaushik Poddar
Is it ad supported?
Vishal Mehta
Is it? It is. Okay, okay.
Kaushik Poddar
Is Rediff in the black? Rediff as a standalone entity.
Vishal Mehta
Last year. For the first time it came in black. But historically the the burns about a million dollars.
Kaushik Poddar
So 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. But do you see as the volume goes up, the existing operation itself can bring in a lot of, lot of profit?
Vishal Mehta
Yes, I think that hard to say before we actually prove it, but I think, you know, just so that you know, it is pretty massive scale. So in other words, you know, you send about half a billion to a billion emails every day. And so it’s scaled out, been around for more than a decade, fully Indianized. All our data is residing only in this country, no other country. So I think from all those parameter perspective, I think there’s a very large opportunity and given the macroeconomic environment, I think it becomes even it’s fast tracked somewhat.
So I think that there’s a pretty large opportunity to do this. I think, you know, since we took up the company last year as infi, massive amounts of engineering that happens because like I said, you know, as a company we want to focus on, you know, deep technology. I think, you know, there are a lot of AI components that we’ve added. So enterprise email customers and clients, now they can have something called rgie, which is the REDF Genie that will do a lot of things for you on the fly. Pretty much like what other companies would offer as tools.
But yeah, I think for us, you know, we think that there’s. To answer your question, I think REDF has significant brand and inherent value that when it’s scaled up we just have to find more ways and mechanisms to monetize on that.
Kaushik Poddar
And in terms of the, this thing, what do you call 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.
Vishal Mehta
Sure. So of course the REDF board will decide on the exact path forward, but it could be a combination thereof. Okay. Okay.
Kaushik Poddar
Because personally I feel that really when you had bought it at 100 crore, that itself was a very low valuation, but that itself was a way and I’m sure you must be building on it and hopefully whatever you are trying to do, add value will take it to further level. So yeah, that’s the way I look at it.
Vishal Mehta
Yeah, that’s the hope. I think there could be a multiplier, but that’s the hope again.
Kaushik Poddar
I mean you have to obviously prove it to whoever is a new equity partner that is coming.
Vishal Mehta
That’s true. That is true.
Kaushik Poddar
Thank you. Thank you. Thanks for letting me. Thanks for this information.
Vishal Mehta
Sure. Thank you.
operator
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.
Vishal Mehta
I’d like to thank everyone on the call. Thank you for your continued belief in our vision. And we believe this is just the beginning. We look forward to building the future together. Thank you.
operator
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.