Fintech and merchant commerce platform Pine Labs has reported a quarterly profit for its India unit for the first time in the three months ending June 2025 (Q1 FY26), marking a significant financial turnaround ahead of its much-anticipated initial public offering (IPO).
According to the Red Herring Prospectus (RHP) filed with the Securities and Exchange Board of India (SEBI), the company posted a net profit of Rs 4.8 crore in the quarter, compared to a loss of Rs 28 crore during the same period last year. The achievement, which comes after several years of expansion-driven losses, is seen as a key milestone for the company as it prepares to go public.
The profit figure also includes a deferred tax credit of approximately Rs 14 crore, while the company reported a pre-tax loss of Rs 4.8 crore. Analysts believe the shift into profitability underscores Pine Labs’ sustained operational momentum across its core payments and merchant services business segments.
Pine Labs Q1 FY26
Pine Labs’ operating revenue rose 18 percent year-on-year to Rs 616 crore in Q1 FY26, up from Rs 522 crore in Q1 FY25. The company’s total income for the first half of the fiscal year crossed Rs 650 crore.
Transaction processing and settlement services continued to be the company’s largest revenue source, contributing close to 70 percent of total income. This vertical reported a 14 percent growth to Rs 432 crore. Meanwhile, revenues from device sales, plastic cards, and ancillary services surged 57 percent to Rs 88 crore during the same period.
The fintech firm has also diversified its revenue base amid growing adoption of its point-of-sale and digital payment solutions by merchants across India. According to industry trackers, this performance reflects strong transaction volumes driven by increasing spending in retail and consumer finance segments.
Cost Structure and Efficiency
On the expenditure front, Pine Labs reported a 17.5 percent rise in total costs to Rs 658 crore for the June quarter. Employee-related expenses remained the largest component, accounting for 44 percent of overall expenditure at Rs 291 crore, up 25 percent year-on-year.
Material expenses stood at Rs 71 crore, while transaction-related costs, depreciation, and finance charges collectively contributed to the overall increase in spending. Despite the growing cost base, Pine Labs’ higher topline and improved operating leverage supported its movement toward profitability.
For the full financial year 2024–25 (FY25), Pine Labs reported operating revenue of Rs 2,274 crore, reflecting a 28.5 percent increase from Rs 1,769 crore in FY24. The company narrowed its net loss to Rs 145 crore in FY25 from Rs 341 crore the previous year. Its adjusted EBITDA, excluding employee stock ownership plan (ESOP) costs, nearly doubled to Rs 356 crore, up from Rs 158 crore in FY24.
IPO and Market Outlook
The upcoming IPO is expected to comprise a fresh issue in the range of Rs 2,080 crore to Rs 2,600 crore and an offer for sale (OFS) of 8.23 crore to 14.78 crore shares by existing shareholders. Key stakeholders participating in the OFS include Peak XV Partners, Temasek, PayPal, Mastercard, Invesco, Madison India, and Sofina Ventures.
According to multiple business media reports, Pine Labs is targeting an estimated valuation of $4 billion to $5 billion through the public listing. Market analysts view the IPO as one of the most closely watched fintech offerings expected in 2026, given the firm’s growth trajectory and improving financial health.
On the operational front, the company has maintained strong growth metrics. Its merchant network expanded to 954,000 by the end of FY25, facilitating approximately 5.7 billion transactions across India. Pine Labs said it now collaborates with 198 financial institutions and 690 consumer brands.
During the June 2025 quarter alone, the platform processed a gross transaction value (GTV) of $46 billion, which translates to an annualised GTV of roughly $185 billion. The company’s evolving ecosystem, combining payments, credit issuance, and merchant services, continues to strengthen its position in India’s rapidly growing digital payments sector.
