Pine Labs turns profitable in Q1 FY26; revenue grows 18%

The Indian unit of merchant commerce and payments platform Pine Labs has filed its Red Hearing Prospectus which shows the company turning profitable in the first half of the ongoing fiscal year FY26. The firm's revenue crossed Rs 650 crore mark in the same time period.

Pine Labs’s operating revenue increased 18% to Rs 616 crore in Q1 FY26 from Rs 522 crore in Q1 FY25, its financial statements sourced from the Red Hearing Prospectus (RHP) shows.

As for the revenue channels of Pine Labs, income from transaction processing and settlement (sale of services) was the main contributor, accounting for 70% of total operating revenue, which rose 14% to Rs 432 crore in Q1 FY26 from Rs 379 crore in Q1 FY25. Revenue from device sales, plastic cards, and other miscellaneous sources brought Rs 88 crore during the first quarter which increased by 57% from Rs 56 crore in Q1 FY25.

In terms of cost breakdown, Pine Labs allocated 44% of its total expenditure to employee benefits, which grew by 25% to Rs 291 crore in Q1 FY26 from Rs 233 crore in Q1 FY25.

Material cost was the next largest expense category at Rs 71 crore. Other significant costs included transaction related costs, depreciation, finance cost which increased the total expense by 17.5% to Rs 658 crore in Q1 FY26 from Rs 560 crore in Q1 FY25.

Pine labs did a turnaround and posted a profit after tax (PAT) of Rs 4.8 crore in Q1 FY25 as compared to a loss of Rs 28 crore in Q1 FY25. However, the firm recorded a loss of Rs 4.8 crore before accounting for tax as it got credited Rs 14 crore in deferred tax which helped it to become profitable.

The RHP offer comprises a fresh issue of equity shares worth Rs 2,080 crore and an offer for sale (OFS) of up to 8.23 crore shares by existing shareholders. Notable investors participating in the OFS include Peak XV Partners, Temasek, PayPal, Mastercard, Invesco, Madison India, and Sofina Ventures.