INFIBEAM

Infibeam Avenues gross revenue stood at INR 11,605 Mn., up 62.0% YoY (+8.4% QoQ), above our estimates (+4.2%). EBIT came in at INR 599 Mn., up 17.7% YoY (+1.0% QoQ), in-line with our estimates. EBIT Margin declined by 194bps YoY to 5.2% (-38bps QoQ) on account of increased payment processing charges. Adjusted net Profit stood at INR 449 Mn., down 3.7% YoY (-28.0% QoQ), sharply above our estimates (+18.8%), driven by higher other income. We have revised our FY26E/FY27E EPS estimates by -5.1%/-8.8% respectively, factoring in a more gradual scale in Transaction Processing Value (TPV). INFIBEAM has laid out a capex roadmap of USD 100mn 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, 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. Outlook We value Infibeam Avenues at 25.0x FY27E EPS, implying a target price of INR 24.4. We reiterate and maintain our “BUY” rating on the stock.