Pine Labs swings to Rs 6 crore profit in Q2 FY26, reverses last year’s loss

Fintech platform Pine Labs reported a profit of Rs 6 crore in the second quarter of FY26, a sharp turnaround from a loss of Rs 32 crore in the same quarter last year. The company said the swing of Rs 38 crore in profit after tax was mainly due to lower non-cash expenses , such as depreciation and employee stock option (ESOP) costs, along with higher revenue and improved operational efficiency.

Revenue for the quarter grew 18% year-on-year to Rs 650 crore , driven by strong performance in online payments , issuing services, and affordability programs. These digital-focused segments continued to outperform traditional in-store payments, reflecting Pine Labs’ long-term strategy of expanding its fintech and merchant solutions business.

The company’s Adjusted EBITDA rose 62% to Rs 122 crore , with margins improving from 14% to 19%, indicating stronger operating efficiency. Pine Labs also generated positive operating cash flow of Rs 241 crore (excluding early settlements) and Rs 152 crore including early settlements, signaling healthy cash generation.

Operationally, the company achieved its highest-ever quarterly Gross Transaction Value (GTV) of over USD 48 billion and onboarded over 1 million merchants on its platform. Its international revenue contribution rose to 17% from 15% in the same period last year, highlighting its growing global footprint.

The loss of Rs 32 crore in Q2 FY25 was largely due to non-cash accounting expenses , which do not involve actual cash outflow. These included depreciation on machines, POS terminals, computers, office equipment, vehicles, and buildings; amortisation of software, licenses, and goodwill from acquisitions; and ESOP expenses for employees. In Q2 FY26, these non-cash costs were lower. Combined with higher revenue and better margins, this helped convert the previous loss into a profit. In simple terms, Pine Labs earned more from its core business while spending less on accounting costs, turning the numbers positive.

Pine Labs is a fintech company providing a range of financial and payment solutions for businesses. Its services include point-of-sale terminals for stores, online payment gateways for websites and apps, merchant financing for small and medium businesses, prepaid and gift cards, and embedded finance solutions that integrate payments, lending, and rewards into apps or e-commerce platforms. The company is headquartered in Noida, Uttar Pradesh. Essentially, Pine Labs helps merchants accept payments, manage money, and offer financial services, both offline and online.

The company recently launched its initial public offering (IPO) on November 14, 2025. The IPO issue price was ₹221 per share. On listing day, the shares opened at ₹242 per share and closed at about ₹252 per share, reflecting strong investor confidence in Pine Labs’ growth story and recent financial turnaround.