AvenuesAI admits AI adoption is slower than promised
Revenue doubled to ₹8,116 crore, but management conceded its core AI growth thesis was misjudged and reversed its lending strategy.
— 1 earlier story on AvenuesAI Ltd. →What's new
- Management admitted enterprise AI adoption is slower than its own projections, requiring a reset of growth models.
- The company reversed its prior denial of NBFC interest, taking minority stakes in lenders like Ratnaafin instead of using its own balance sheet.
- Analysts from Dolat Capital and Novaise questioned management credibility on repeated international revenue target misses.
Why this matters
The two pillars of the AI-led growth story just cracked. The core AI adoption thesis is being downgraded. The aggressive balance-sheet lending plan has been abandoned for a minority-stake model. For a stock riding a 103% revenue surge, this is a material reset of the forward narrative.
What we're watching
- Any revised AI adoption timeline or new guidance from management.
- Performance of the new minority-stake lending investments.
- Whether institutional skepticism leads to rating or price-target downgrades.
The full read
AvenuesAI just doubled its revenue to ₹8,116 crore. That number is now the backdrop for a strategic U-turn. Management told analysts its core thesis of rapid enterprise AI adoption was misjudged, and its growth models need resetting. On the same call, it reversed a prior denial of interest in NBFCs, revealing it has taken minority stakes in lenders like Ratnaafin. The shift to an asset-light model acknowledges the risk of deploying its own capital. The substance of the call was this admission of over-optimism, compounded by pointed analyst questions on credibility over repeated international target misses and associate-entity spending. A 103% revenue year is being overshadowed by a management story that just changed on two fronts at once.
Questions answered
- What exactly did AvenuesAI admit about its AI growth story?
- Management conceded that its own projections for the speed of enterprise AI framework adoption were overly optimistic. The slowdown is sharper than previously modeled, requiring a reset of valuation models that priced in rapid AI-led margin expansion.
- How has the lending strategy changed?
- The company has moved from a public denial of interest in the NBFC space to actively taking minority stakes in digital lenders like Ratnaafin and Online PSB Loans. This is a shift from an asset-heavy model to an asset-light approach leveraging existing credit infrastructure.
- Why are analysts questioning management's credibility?
- Analysts from firms including Dolat Capital and Novaise cited repeated revisions to international revenue targets and capital allocation decisions involving associate companies. These concerns were raised directly during the call.
- Was the financial performance itself a problem?
- No. The headline FY26 numbers were strong, with revenue surging 103% to ₹8,116 crore. The credibility issues stem from forward-looking targets and strategic consistency, not the reported historical results.
Story so far
All notes on CCAVENUE →- 29 May 2026 · 7:18 PM IST AvenuesAI admits AI adoption is slower than promised
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