Pine Labs Reports Profitability in FY26

The Indian division of the merchant commerce and payments platform Pine Labs has submitted its Red Hearing Prospectus, indicating that the company has achieved profitability in the first half of the current fiscal year FY26. The firm’s revenue exceeded the Rs 650 crore milestone during this period.

Revenue Growth of Pine Labs

Pine Labs’s operational revenue rose by 18% to reach Rs 616 crore in Q1 FY26, up from Rs 522 crore in the same quarter of the previous fiscal year, as per financial records derived from the Red Hearing Prospectus.

Key Revenue Streams

In terms of revenue sources, income generated from transaction processing and settlement, which covers service sales, was the primary contributor, making up 70% of the overall operating revenue. This segment saw a 14% increase to Rs 432 crore in Q1 FY26, climbing from Rs 379 crore in Q1 FY25. Revenue derived from device sales, plastic cards, and other miscellaneous channels accounted for Rs 88 crore in the first quarter, marking a significant growth of 57% from Rs 56 crore in Q1 FY25.

Cost Analysis of Pine Labs

Pine Labs allocated 44% of its total expenditures to employee benefits, which exhibited a 25% rise to Rs 291 crore in Q1 FY26, compared to Rs 233 crore in Q1 FY25. The material cost category followed closely with an expenditure of Rs 71 crore. Other vital costs included transaction-related expenses, depreciation, and finance costs, resulting in a total expense increase of 17.5%, escalating from Rs 560 crore in Q1 FY25 to Rs 658 crore in Q1 FY26.

Profit and Loss Overview

Pine Labs successfully turned around its financial standing, posting a profit after tax (PAT) of Rs 4.8 crore in Q1 FY26, contrasting with a loss of Rs 28 crore recorded in Q1 FY25. Nevertheless, the firm encountered a pre-tax loss of Rs 4.8 crore, which was alleviated by a Rs 14 crore credit in deferred tax, facilitating its profitable status.

Details on the Red Hearing Prospectus

The Red Hearing Prospectus outlines a fresh issue of equity shares valued at Rs 2,080 crore and an offer for sale (OFS) consisting of up to 8.23 crore shares by current shareholders. Noteworthy participants in the OFS include Peak XV Partners, Temasek, PayPal, Mastercard, Invesco, Madison India, and Sofina Ventures.