Pine Labs Retains Profitability In Q2, Posts INR 6 Cr PAT

SUMMARY

While it reported a net loss of INR 32 Cr in the year-ago quarter, the company's profit rose 25% QoQ from INR 4.8 Cr in Q1 FY26

Operating revenue jumped 18% YoY and 6% QoQ to INR 649.9 Cr during the quarter under review

Total expenses rose 8% YoY to INR 661.7 Cr

Recently listed Pine Labs reported a net profit of INR 6 Cr in Q2 FY26 as against a net loss of INR 32 Cr in the year-ago period. Sequentially, the company’s profit rose 25% from INR 4.8 Cr in Q1 FY26.

Operating revenue jumped 18% YoY and 6% QoQ to INR 649.9 Cr during the quarter under review. Including other income of INR 23 Cr, total income stood at INR 672.9 Cr.

Pine Labs’ digital infrastructure and transaction platform, which includes its flagship in-store and online payments solutions, saw its revenue jump 12% YoY to INR 440 Cr. Meanwhile, its issuing and acquiring platform segment revenue saw a heftier 32% YoY jump in revenue to INR 209.8 Cr.

With a stronger revenue jump in its issuing and acquiring platform segment, which allows its clients to manage prepaid cards, employee incentives, and loyalty programmes, the contribution of its flagship transaction platform offering to the top line declined to 67% in Q2 FY26 from 71% FY25.

Meanwhile, total expenses rose 8% YoY to INR 661.7 Cr. In this, employee expenses were the highest at INR 267.9 Cr, up 4% YoY.

The company’s adjusted EBITDA zoomed 62% YoY to INR 122 Cr, while adjusted EBITDA margin expanded from 14% to 19% as a result of its higher margin businesses growing faster, complemented with disciplined employee cost control.

On the operational front, Pine Labs’ client base jumped 29% YoY to over 1 Mn merchants in the quarter under revenue. The fintech company processed close to 1.9 Bn transactions (+44% YoY) in the quarter via 1.9 Mn digital checkpoints (+19% YoY). With the healthy business growth, platform gross transaction value (GTV) surged 92% YoY to over $48 Bn.

With this, the company retained the profitability it attained in the run up to its IPO in Q1 FY26.

For the full fiscal year FY25, Pine Labs narrowed its net loss by 57% YoY INR 145.4 Cr on the back of a 28% YoY uptick in its top line to INR 2,274.3 Cr.

Pine Labs MD and CEO Amrish Rau attributed the strong financial performance in Q2 to new client wins, low attrition in existing client base, issuing, online and bill payments business operating at scale and increased intensity in cross-selling campaigns.

“We believe we are on a multi-year journey, and this was just another game day for us… First, we turned clean PAT positive in Q1, and we have now followed it up with a Q2 that is again PAT positive. This is not a one-off event; we believe it is the result of the solid hard work we have been putting in over the last many months,” Rau noted.

Moving forward, Pine Labs expects higher revenue in the next quarter. In its shareholders’ letter, it said that Q3 typically delivers the highest revenue for its business due to festive seasonality. “Q2 FY26 – despite being a non-seasonal quarter – delivered 8% higher revenue over the peak of the previous FY (Q3 FY25),” the company noted.

Shares of the company ended today’s trading session 0.84% lower at INR 247.60 on the BSE.