Fintech firm Pine Labs turns profitable in Q1 FY26 ahead of IPO launch

Merchant commerce and payments platform Pine Labs' India unit has reported its first quarterly profit in the three months ended June 2025 (Q1 FY26), marking a significant turnaround ahead of its upcoming IPO.

According to its Red Herring Prospectus (RHP) filed with SEBI, the company posted a net profit of Rs 4.8 crore in Q1 FY26, compared with a loss of Rs 28 crore in the same period last year. The gain was partly supported by a deferred tax credit of Rs 14 crore, even as pre-tax losses stood at Rs 4.8 crore.

Pine Labs’ operating revenue rose 18% year-on-year to Rs 616 crore in Q1 FY26 from Rs 522 crore in Q1 FY25, crossing the Rs 650 crore mark in total income during the half year. 

Revenue from transaction processing and settlement services contributed the majority, about 70%, rising 14% to Rs 432 crore, while income from device sales, plastic cards, and other services jumped 57% to Rs 88 crore.

On the cost side, employee benefits accounted for 44% of total expenditure, increasing 25% to Rs 291 crore. Material costs were Rs 71 crore, while transaction-related expenses, depreciation, and finance costs together lifted total spending by 17.5% to Rs 658 crore in Q1 FY26.

For the full FY25, Pine Labs reported operating revenue of Rs 2,274 crore, up 28.5% from Rs 1,769 crore in FY24. The Peak XV Partners-backed company narrowed its net loss to Rs 145 crore in FY25, from Rs 341 crore the previous year. Adjusted EBITDA (excluding ESOP costs) nearly doubled to Rs 356 crore in FY25 from Rs 158 crore in FY24.

The IPO comprises a fresh issue of Rs 2,080-2,600 crore and an offer for sale (OFS) of 8.23-14.78 crore shares by existing shareholders including Peak XV Partners, Temasek, PayPal, Mastercard, Invesco, Madison India, and Sofina Ventures.

According to media reports, the fintech company is targeting a valuation between $4 billion and $5 billion.

On the business front, Pine Labs has strengthened its network to 954,000 merchants, enabling 5.7 billion transactions across India in FY25. The company said it now works with 198 financial institutions and 690 consumer brands. In the June quarter alone, it processed a gross transaction value (GTV) of $46 billion, translating to an annualised GTV of $185 billion.