Pine Labs Reports Strong Q2 FY26 Results with ₹650 Cr Revenue

Pine Labs , a leading global fintech platform, has reported strong financial results for the second quarter of fiscal year 2026 (Q2 FY26), demonstrating robust growth and improved profitability. The company's performance highlights its expanding market presence and operational efficiency.

Key Financial Highlights

Revenue and Profitability

Pine Labs has shown impressive growth in its top-line and bottom-line performance. The company's revenue from operations increased by 18% year-over-year to reach ₹650.00 crores in Q2 FY26. This growth was primarily driven by the robust performance of its issuing, affordability, and online payments businesses.

The company's profitability metrics have shown significant improvement:

• Adjusted EBITDA: Grew by 62% YoY to ₹122.00 crores
• Adjusted EBITDA Margin: Expanded from 14% to 19%
• Profit After Tax (PAT): Achieved ₹6.00 crores, marking the second consecutive profitable quarter

Operational Performance

Pine Labs continues to strengthen its market position:

• Gross Transaction Value (GTV): Processed over $48 billion, up 92% YoY
• Transaction Volume: Handled approximately 1.9 billion transactions, a 44% YoY increase
• Merchant Base: Surpassed 1 million merchants, growing 29% YoY

International Expansion

The company's focus on international markets is yielding results, with 17% of Q2 FY26 revenue coming from overseas operations, up from 15% in Q2 FY25.

Cash Flow and Financial Position

Pine Labs demonstrated strong cash generation capabilities:

• Operating Cash Flow: Generated ₹241.00 crores (excluding early settlement) and ₹152.00 crores (including early settlement) during the quarter

Long-term Financial Trends

Analyzing the company's financial data over the past few years reveals some interesting trends:

1. Revenue Growth: The company has shown consistent revenue growth, with sales increasing from ₹1,280.50 crores in FY23 to ₹1,597.30 crores in FY25, representing a 24.74% growth over two years.

2. Profitability Improvement: Pine Labs has made significant strides in improving its profitability:

   • Net profit improved from a loss of ₹265.10 crores in FY23 to a loss of ₹145.50 crores in FY25, showing a 45.12% reduction in losses.
   • The company turned profitable in the standalone financials, with a net profit of ₹43.50 crores in FY25 compared to a loss of ₹56.10 crores in FY23.

3. EBITDA Growth: EBITDA has shown remarkable improvement, growing from ₹98.10 crores in FY23 to ₹271.20 crores in FY25, a 176.45% increase over two years.

4. Operating Margin Expansion: The operating profit margin (OPM) has significantly improved from 0.34% in FY23 to 9.60% in FY25, indicating enhanced operational efficiency.

5. Cash Flow Management: While operating activities cash flow has been volatile, the company has shown improvement, moving from a negative ₹38.30 crores in FY23 to a positive ₹49.70 crores in FY25.

These long-term trends indicate that Pine Labs is on a path of sustainable growth and improving profitability, which aligns with its recent quarterly performance.

Conclusion

Pine Labs' Q2 FY26 results demonstrate the company's ability to drive growth while improving profitability. The expansion of its merchant base, increased transaction volumes, and international growth all contribute to its strong performance. As the company continues to innovate and expand its fintech offerings, it is well-positioned to capitalize on the growing digital payments market both in India and internationally.