Infibeam Avenues gross revenue stood at ₹1,160.50 crore,

Target: ₹24.4

CMP: ₹21.66

Infibeam Avenues gross revenue stood at ₹1,160.50 crore, up 62 per cent y-o-y (+8.4 per cent q-o-q), above our estimates (+4.2 per cent).

EBIT came in at ₹59.90 crore, up 17.7 per cent y-o-y (+1 per cent q-o-q), in-line with our estimates. EBIT Margin declined by 194bps y-o-y to 5.2 per cent (-38bps q-o-q) on account of increased payment processing charges. Adjusted net Profit stood at ₹44.90 crore, down 3.7 per cent y-o-y (-28 per cent q-o-q), sharply above our estimates (+18.8 per cent), driven by higher other income.

We have revised our FY26E/FY27E EPS estimates by -5.1/-8.8 per cent respectively, factoring in a more gradual scale in Transaction Processing Value (TPV).

Infibeam has laid out a capex roadmap of $100 million over the next three years, primarily to support its global expansion and data center investments. Although the future growth is expected to materialize through entry into markets such as Saudi Arabia, the UAE, and Oman, we believe these initiatives are in early stages, and the execution and scale is yet to be proven.

Further, margin compression remains a near-term overhang led by elevated cost structure driven by ongoing diversification and expansion.

We value Infibeam Avenues at 25x FY27E EPS, implying a target price of ₹24.4. We reiterate and maintain our “Buy” rating on the stock.

Published on May 30, 2025