Pine Labs posts first full-year profit of ₹113 crore in FY26
Pine Labs Limited reported its first full-year net profit of ₹113 crore for FY26, reversing a ₹145 crore loss in the previous year, while revenue grew 19% to ₹2,711 crore. Operating cash flow surged eight-fold to ₹395 crore, driven by a strong working capital cycle. The Board approved the audited results on May 25, 2026, with the statutory auditor issuing an unmodified opinion.
*this image is generated using AI for illustrative purposes only.
Pine Labs Limited reported its first full year of profitability for the financial year ended March 31, 2026, with a net profit of ₹113 crore. This marks a significant turnaround from the net loss of ₹145 crore recorded in the previous year. Revenue from operations grew 19% year-on-year to ₹2,711 crore, driven by a 50% increase in Gross Transaction Value to $194 billion. Operating cash flow for the year surged to ₹395 crore, an eight-fold increase compared to the prior year, with the company's strong working capital cycle identified as a key driver of healthy cash flow creation. The company also expects full-year operating cash flow to stay around ₹400 crore, with strong performance anticipated ahead.
The Board of Directors approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, at a meeting held on May 25, 2026. B S R & Co. LLP, the statutory auditor, issued an unmodified opinion on the financial results. For the quarter ended March 31, 2026, the company reported its highest-ever quarterly profit after tax of ₹59 crore, compared to a loss of ₹29 crore in the corresponding period of the previous year. Quarterly revenue came in at ₹701 crore, compared to ₹599 crore in the same period of the prior year.
Financial Performance
The company's adjusted EBITDA expanded 57% year-on-year to ₹559 crore, with margins improving from 16% to 21%. The contribution margin for the year stood at ₹2,041 crore, representing a 75% margin. On a standalone basis, the company reported a profit of ₹149.88 crore for FY26, compared to ₹28.02 crore in the previous year. The following table summarises the key consolidated financial metrics for the full year.
Consolidated Financial Results (FY26)
| Metric: | Amount (₹ Cr) | Year-on-Year Change |
|---|---|---|
| Revenue from Operations: | 2,711 | +19% |
| Profit After Tax: | 113 | Turnaround from loss |
| Adjusted EBITDA: | 559 | +57% |
| Operating Cash Flow: | 395 | 8x |
Q4 Consolidated Performance
The latest quarterly results highlight the company's continued momentum, with key metrics summarised below.
| Metric: | Q4 FY26 | Q4 FY25 |
|---|---|---|
| Revenue: | ₹701 Cr | ₹599 Cr |
| Net Profit / (Loss): | ₹59 Cr | (₹29 Cr) |
Analyst View
Morgan Stanley has maintained an Equal-weight rating on Pine Labs with a target price of ₹245. The brokerage cited a slight Q4 miss versus consensus but acknowledged strong operating leverage and improved adjusted EBITDA-to-cash flow conversion as positive indicators. Morgan Stanley also noted the company's medium-term revenue growth guidance of 21–23.5% as a key factor underpinning its assessment.
Morgan Stanley Rating Summary
| Parameter: | Details |
|---|---|
| Rating: | Equal-weight |
| Target Price: | ₹245 |
| Q4 Performance vs Consensus: | Slight miss |
| Medium-Term Revenue Growth Guidance: | 21–23.5% |
| Key Positives Noted: | Strong operating leverage, improved adjusted EBITDA-to-cash flow conversion |
Strategic Developments
During the year, the company completed an initial public offering (IPO) in the quarter ended December 2025, raising ₹2,080 crore through a fresh issue of equity shares. The proceeds were utilised for repayment of borrowings, investments in subsidiaries, and technology development. As of March 31, 2026, the company had utilised ₹797.28 crore of the IPO proceeds, leaving ₹1,282.72 crore unutilised.
Subsequent to the reporting date, on April 25, 2026, Pine Labs entered into a Share Purchase Agreement to acquire 100% equity stake in Shopflo Technologies Private Limited for a cash consideration of ₹88 crore. Shopflo is engaged in the business of a direct-to-consumer Checkout Platform. The transaction is subject to the fulfilment of specified precedent conditions. The company also acquired an additional 74.60% equity interest in Agya Technologies Private Limited during the year, increasing its total holding to 100%. This acquisition resulted in a remeasurement loss of ₹4.79 crore recognised in the financial statements.
Conference Call Disclosure
Pursuant to Regulation 30 and 46 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Pine Labs has uploaded the audio/video recording of the conference call organised with analysts and investors. The call was held on Tuesday, May 26, 2026, from 8:02 A.M. (IST) to 9:18 A.M. (IST). The recording is accessible on the company's website at www.pinelabs.com/investor-relations/financial-results?tab=quarterly-results .
Historical Stock Returns for Pine Labs
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +5.72% | -2.38% | -25.54% | -39.33% | -41.87% | -41.87% |
How does Pine Labs plan to utilize the remaining ₹1,282.72 crore in unutilized IPO proceeds to drive future growth?
What impact will the acquisition of Shopflo Technologies have on Pine Labs' direct-to-consumer strategy and revenue synergies?
Can the company sustain the 21–23.5% medium-term revenue growth guidance amidst increasing competition in the fintech sector?
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