Novus Loyalty H1 FY27 Results and Strategic Expansion

Novus Loyalty reported revenue of Rs 98 crore for H1 FY27, showing strong growth across business segments. The firm has concurrently announced the acquisition of an 80.87% stake in AutoPay at a valuation of approximately Rs 130 crore.

Reader Takeaway: Strong double-digit revenue growth is supported by an ambitious acquisition strategy to integrate payment infrastructure and loyalty rewards.

What just happened

Novus Loyalty posted a strong H1 FY27 performance with revenue hitting Rs 98 crore, representing a 35-40% year-on-year increase. Digital Vouchers led the growth contributing Rs 49 crore, followed by Redemption revenue at Rs 36 crore. The company is also acquiring a majority 80.87% stake in AutoPay to enhance its payment processing capabilities and work toward securing PPI licenses. The deal is expected to conclude within the next six months.

Why this matters

This acquisition signals a strategic pivot to merge loyalty programs with payment collection services. Management expects this vertical integration to create significant operational synergies. While AutoPay's current margins have faced pressure from R&D and specific project costs, they are expected to normalize at 17-20% as the business scales.

Strategic Outlook

The management has set aggressive long-term revenue targets of Rs 500 crore by FY29 and Rs 600-650 crore by FY30. Key growth pillars include expanding in the BFSI sector, deploying AI-led solutions under the 'Noxcy AI' brand, and targeting international markets in Dubai and Africa.

What to track next

Investors should monitor the integration of AutoPay, the timeline for securing PPI licenses, and the actual monetization of AI agents, which are currently bundled within enterprise platforms but slated for future standalone billing.