Brokerage firm Angel One has initiated coverage on **Infibeam Avenues Ltd (IAL)** with a *“BUY”* rating, setting a target price of **₹21 per share**, implying a potential upside of nearly **35%** from the current level of **₹15.5**.
Founded in 2010 and headquartered at **GIFT City, Gandhinagar**, Infibeam Avenues is a listed fintech and digital infrastructure company with operations spanning **digital payments, AI-driven solutions, and enterprise SaaS platforms**. The company also owns **Rediff.com**, which has over 100 million users.
Infibeam has been actively investing in AI and payments infrastructure. In FY25, it raised **₹700 crore via a rights issue**, earmarked for building **12 AI data centers**, strengthening its payments ecosystem, and expanding Rediff platforms. Its AI venture, **Phronetic.AI**, has already begun monetization, generating over \$1 million annually.
For Q1 FY26, Infibeam reported strong financial growth with **gross revenue up 72% YoY to ₹12,802 million**, **net revenue up 31% YoY to ₹1,520 million**, and **adjusted PAT rising 70% YoY to ₹855 million**. Margins remained robust with **EBITDA at 47%** and **PAT at 56%**. The company processed **₹1.93 trillion in Total Payment Value (TPV)** during the quarter.
The payments business contributed **96% of revenues**, while the platforms business, impacted by expiry of the GeM contract, is being strategically integrated with Rediff. The transfer deal, valued at **₹800 crore**, will raise Infibeam’s stake in Rediff from **54.1% to 82.7%**, with expectations of scaling revenues from a ₹300 crore run-rate to ₹1,000 crore within a year.
Looking ahead, Infibeam is also expanding globally with presence in the **UAE, Saudi Arabia, and Oman**, where international payments are projected to account for **12–15% of revenues by FY28**.
According to industry estimates, India’s digital payments market is set to nearly double from **\$410 billion in 2025 to \$958 billion by 2030**, driven by UPI penetration, smartphone adoption, and emerging payment modes. Angel One believes Infibeam is well-positioned to capitalize on this growth trajectory.
However, the brokerage flagged risks such as dependence on a few large merchants for TPV and exposure to currency and geopolitical uncertainties in overseas markets.
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