AvenuesAI Q1 FY27 Results (NSE: CCAVENUE)
Signal: Earnings grew
The read
The trajectory remains high revenue growth but deteriorating monetisation of scale: consolidated revenue accelerated to ₹26,804.0 million, +109.4% YoY, while operating margin contracted 280bps to 4.8%, extending the margin-compression arc from the 6% OPM level in Q1FY26; the 45.1% PAT increase is less operationally clean because tax expense fell to ₹18.9 million from ₹204.6 million and EPS grew only 14.3%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,680.4 Cr | +109.4% | +7.7% |
| Net profit | ₹84.77 Cr | +45.1% | |
| EPS | ₹0.24 | +14.3% | |
| EBIT margin | 4.8% |
P&L walk
Consolidated revenue rose to ₹26,804.0 million, +109.4% YoY and +7.7% QoQ, but the operating-cost base rose 124.3% YoY and pushed the operating margin down 280bps to 4.8%; PAT increased 45.1% to ₹847.7 million, helped by tax expense falling to ₹18.9 million from ₹204.6 million.
Segments
No consolidated segment table is provided; the material basis divergence is that consolidated PAT was ₹847.7 million versus standalone PAT of ₹252.8 million, with subsidiaries contributing ₹1,251.4 million of revenue and ₹215.5 million of net profit before consolidation effects.
Key positives
- Consolidated revenue reached ₹26,804.0 million, +109.4% YoY and +7.7% QoQ, sustaining the company's rapid payment-ecosystem expansion.
- Consolidated PAT increased 45.1% YoY to ₹847.7 million, while associate share of profit improved to ₹18.9 million from a ₹17.0 million contribution in the year-ago quarter.
- Employee benefit expense fell 23.2% YoY to ₹300.5 million and other expenses fell 58.5% to ₹174.1 million, showing some cost containment outside the core operating-expense line.
- ₹6,959.8 million of rights-issue proceeds had been received, with ₹3,671.9 million still unutilised at June 30, 2026 for future investments and growth initiatives.
Key concerns
- Operating expenses rose 124.3% YoY versus revenue growth of 109.4%, compressing operating margin by 280bps to 4.8% and continuing the multi-quarter margin contraction.
- PAT growth of 45.1% was materially aided by tax expense falling to ₹18.9 million from ₹204.6 million, while sequential PAT declined 4.7% despite 7.7% revenue growth.
- Finance cost increased 317.3% YoY to ₹101.4 million and depreciation increased 89.9% to ₹335.6 million, raising the need to monitor the cost of the expansion cycle.
- EPS growth of 14.3% lagged PAT growth of 45.1% as the equity base expanded, reducing per-share conversion of reported profit.
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