Fintech firm Pine Labs posts profit in Q3 FY26; revenue rises 24% to Rs 744 crore

Fintech major Pine Labs reported a strong operating and financial performance in the third quarter of FY26, supported by higher transaction volumes, revenue growth across core businesses, and improved profitability, even as the company navigated elevated working capital requirements during the festive season.

During the quarter, Pine Labs’ platform gross transaction value (GTV) grew 29% year-on-year to $50.6 billion, or about Rs 4.5 lakh crore, marking the highest-ever quarterly volumes across both its Digital Infrastructure and Transaction Platform and its Issuing and Acquiring Platform.

The number of transactions rose 23% year-on-year to 192.6 crore, reflecting deeper engagement and higher frequency of usage across merchant and enterprise clients.

Revenue from operations increased 24% year-on-year to Rs 744 crore in Q3 FY26, up from Rs 601 crore a year earlier, driven by continued growth in issuing, affordability solutions, and online payments.

Other income added Rs 36 crore, taking total income for the quarter to Rs 780 crore. For the nine-month period ended December 2025, revenue grew 20% year-on-year to Rs 2,010 crore.

Pine Labs said it recognises revenue on a net basis, reflecting amounts retained after payment processing fees and pass-through charges payable to banks and network partners, noting that some peers continue to present revenues on a gross basis.

On profitability, contribution margin grew 19% year-on-year to Rs 551 crore. Adjusted EBITDA rose 59% year-on-year to Rs 171 crore, with margins expanding to 23% from 18% a year earlier, supported by a higher mix of margin-accretive businesses and prudent cost management.

Profit after tax improved by Rs 99 crore year-on-year, moving from a loss of Rs 57 crore in Q3 FY25 to a profit of Rs 42 crore in Q3 FY26. For the nine-month period, the company reported a net profit of Rs 53 crore.

On the cost side, employee benefits remained the largest expense, accounting for 37% of total costs. Employee expenses rose 5% year-on-year to Rs 263 crore in Q3 FY26.

Operating cash flow for the quarter stood at minus Rs 124 crore, excluding early settlements, and minus Rs 152 crore including early settlements. The company attributed the working capital outflow to higher transaction volumes during the festive period, which it expects to normalise in the following quarter.

The results come in the same quarter as Pine Labs’ listing on Indian stock exchanges. The company made a positive market debut, with its shares listing at a 9.5% premium over the issue price. The stock opened at Rs 242 per share against an IPO price of Rs 221 on the NSE and BSE.

Earlier this month, Pine Labs also received Reserve Bank of India approval to fully acquire RBI-licensed account aggregator Agya Technologies, increasing its stake to 100% and strengthening its presence in the account aggregation ecosystem.