1. At a Glance
Infibeam Avenues isn’t just surviving in the chaotic fintech jungle — it’s quietly stacking ₹3,993 Cr in revenue and clocking 43% profit growth (TTM). But at ₹16/share and 6% ROE, this “market leader” in digital payments is more tortoise than hare.
2. Introduction with Hook
If Paytm is the rockstar with a scandalous past and PhonePe the corporate poster child, Infibeam Avenues is the nerd in the back row — small voice, big grades, no hype. And like every classic nerd, it just pulled off a ₹700 Cr rights issue oversubscribed by 1.4x.
- FY25 Revenue: ₹3,993 Cr
- PAT: ₹236 Cr
- EPS: ₹0.65
- Market Cap: ₹5,573 Cr
And yes, they’re almost debt-free. In fintech. With AI bets. This should be illegal.
3. Business Model (WTF Do They Even Do?)
They run Payment Gateways, e-Commerce software, and now AI.
- Payment Gateway (CC Avenue): Processes ₹1 Lakh Cr+ annually. Top 3 B2B gateway in India.
- B2B eCommerce Platform: SaaS infra for merchants, billing, logistics, storefronts.
- Phronetic AI: For real, that’s the name. Building AI solutions for fuel and energy sectors.
- UAE Expansion: In just 18 months, became #2 private non-bank payment processor.
- Revenue Model: MDR fees, SaaS licensing, AI tools, settlement commissions.
Diversified, de-risked, and low-key genius.
4. Financials Overview
| FY | Revenue (₹ Cr) | Net Profit (₹ Cr) | EPS (₹) | ROCE (%) | ROE (%) |
|---|---|---|---|---|---|
| FY21 | ₹676 | ₹70 | ₹0.22 | 3% | 3% |
| FY22 | ₹1,294 | ₹84 | ₹0.26 | 3% | 3.5% |
| FY23 | ₹1,962 | ₹136 | ₹0.42 | 6% | 5.5% |
| FY24 | ₹3,171 | ₹156 | ₹0.45 | 6% | 6.0% |
| FY25 | ₹3,993 | ₹236 | ₹0.65 | 8.3% | 6.18% |
Sales CAGR? 46% over 3 years. Profits? Compounding 39%. ROE? Still searching for vitamin shots.
5. Valuation
Price: ₹16
EPS: ₹0.65
P/E: 25x
Fair Value Range (Speculative Tech Adjusted):
- P/E 25x = ₹16 (already there)
- P/E 30x = ₹19.5
- P/E 35x = ₹22.75
Let’s not lie — this is not a cash cow yet. It’s a growing cub, and maybe one day it roars.
6. What’s Cooking – News, Triggers, Drama
- July 2025: ₹700 Cr rights issue oversubscribed 1.4x → to fund AI and fintech infra
- June 2025: Phronetic AI signs MoU with Nawgati for energy sector AI stack
- FY25: Q4 net profit ₹55 Cr → up from ₹46 Cr QoQ
- UAE Biz: Doubled volumes in FY25
- Reg Watch: No compliance or fintech bans = peace
This is that rare fintech company where press releases don’t scream “fraud” or “burn rate.”
7. Balance Sheet
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | ₹268 Cr | ₹278 Cr | ₹279 Cr |
| Reserves | ₹2,898 Cr | ₹3,179 Cr | ₹3,457 Cr |
| Debt | ₹8 Cr | ₹83 Cr | ₹172 Cr |
| Net Worth | ₹3,166 Cr | ₹3,457 Cr | ₹3,736 Cr |
Key Point: Rights issue will likely boost cash & reserves further. Still low debt, healthy liquidity. Balance sheet tighter than a startup pitch deck.
8. Cash Flow – Sab Number Game Hai
| FY | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY23 | ₹113 Cr | -₹88 Cr | ₹37 Cr | ₹61 Cr |
| FY24 | ₹720 Cr | -₹460 Cr | ₹178 Cr | ₹437 Cr |
| FY25 | ₹72 Cr | -₹672 Cr | ₹208 Cr | -₹391 Cr |
Takeaway: FY24 saw windfall inflows. FY25: heavy AI + platform investments. Watch closely if these pay off.
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE | 6% | 6% | 8.3% |
| ROE | 5.5% | 6% | 6.18% |
| D/E | 0.002 | 0.026 | 0.046 |
| OPM | 9% | 8% | 8% |
| Working Capital Days | 30 | -14 | 42 |
Diagnosis: Sexy growth, stressy returns. But no debt and steady ops mean they can afford to bide time.
10. P&L Breakdown – Show Me the Money
| FY | Revenue | EBITDA | PAT | EPS |
|---|---|---|---|---|
| FY21 | ₹676 Cr | ₹142 Cr | ₹70 Cr | ₹0.22 |
| FY22 | ₹1,294 Cr | ₹145 Cr | ₹84 Cr | ₹0.26 |
| FY23 | ₹1,962 Cr | ₹175 Cr | ₹136 Cr | ₹0.42 |
| FY24 | ₹3,171 Cr | ₹251 Cr | ₹156 Cr | ₹0.45 |
| FY25 | ₹3,993 Cr | ₹303 Cr | ₹236 Cr | ₹0.65 |
Slow compounding. Not yet a 10-bagger, but better than a startup with 3 logos and zero EBITDA.
11. Peer Comparison
| Company | CMP | P/E | ROE | OPM | Market Cap | Net Profit (TTM) |
|---|---|---|---|---|---|---|
| PB Fintech | ₹1,768 | 257x | 5.1% | 1.88% | ₹81,210 Cr | ₹315 Cr |
| Paytm | ₹1,001 | N/A | -10.3% | -21.8% | ₹63,874 Cr | -₹1,458 Cr |
| Infibeam | ₹16 | 25x | 6.18% | 8% | ₹5,573 Cr | ₹236 Cr |
| MobiKwik | ₹261 | N/A | -31.3% | -9.2% | ₹2,041 Cr | -₹55 Cr |
Infibeam wins the “Actually Profitable Fintech” award. Not flashy, but stable.
12. Miscellaneous – Shareholding, Promoters
| Holder | Jun 2022 | Jun 2024 | Jun 2025 |
|---|---|---|---|
| Promoters | 30.64% | 27.43% | 27.36% ↓ |
| FIIs | 7.08% | 6.57% | 7.72% ↑ |
| DIIs | 0.04% | 0.09% | 0.20% ↑ |
| Public | 61.78% | 65.48% | 64.29% |
Flag: Promoter stake is shrinking — a concern unless it’s for capex or rights dilution.
Green Light: FII interest rising. Over 7% = not a penny stock for long?
13. EduInvesting Verdict™
Infibeam Avenues is a fintech paradox. On one hand, you have a company growing revenue at 40%+, nearly debt-free, and dabbling in AI. On the other, you have promoter stake going down, tiny EPS, and no pricing power yet.
But unlike loud fintechs who burn crores in coffee meetings, Infibeam is quietly building infrastructure — not headlines. With a presence in India + UAE, ₹3,993 Cr topline, and Phronetic AI in play, it’s one catalyst away from a narrative breakout.
Will that be a blockbuster? Or just another “bounced payment” on investor hopes? Jury’s still out — but at ₹16, the downside’s already priced in.
Metadata
– Written by EduInvesting Analyst | 18 July 2025
– Tags: Infibeam Avenues, Fintech Stocks, Payment Gateway, AI, Rights Issue, Phronetic AI, Value Investing
