Pine Labs Q2 Results: Consolidated Net Profit Returns, Revenue Up 18%

Pine Labs shares gained over 2% following the release of its Q2 FY26 results, highlighting a clear return to the profit column. The payment solutions company reported a consolidated net profit of ₹6 crore for the September quarter, rebounding from a ₹32 crore loss a year ago.

This recovery marks an important milestone, highlighting improved operational performance and cost efficiencies as Pine Labs strengthens its position in the payment solutions market.

Market Performance and Key Highlights

• Revenue from operations rose 18% year-on-year to ₹650 crore, compared to ₹552 crore in Q2 FY25.
• Quarter-on-quarter revenue growth was nearly 6%, up from ₹616 crore in Q1 FY26.
• EBITDA surged 62% year-on-year to ₹122 crore, with margins expanding from 14% to 19%.
• Profit after tax (PAT) increased 25% compared to Q1 FY26, which recorded ₹5 crore.

A sharp decline in ESOP expenses also contributed to improved margins. ESOP costs dropped to ₹29 crore, down from ₹66 crore in the previous quarter. Relative to revenue, ESOP expenses fell from 7% last year and last quarter to just 4% in Q2 FY26.

Company Details

Pine Labs’ performance reflects strong growth across several key business segments:

• Issuing and Acquiring: Growth of 32.5% YoY.
• Digital Infrastructure and Transaction Processing (DITP): Revenue grew 11.9% YoY, slightly slower due to a shift from hardware-based contracts to software-focused agreements.

Other segments, such as VAS, Affordability, and Online, continued to expand robustly, each exceeding 30% growth YoY, demonstrating Pine Labs’ diversified revenue streams.

Operational efficiency improvements played a key role in enhancing EBITDA, while selective investments in the Affordability segment increased working capital, resulting in a free cash flow of ₹(2.15) billion in the first half of FY26.

Summary of Q2 FY26 Performance

Pine Labs’ Q2 numbers reflect a steady recovery and operational strength:

• Consolidated net profit: ₹6 crore (vs. ₹32 crore loss YoY)
• Revenue from operations: ₹650 crore, up 18% YoY
• EBITDA: ₹122 crore, 62% increase YoY
• EBITDA margin: 19% (up from 14% last year)
• PAT growth: 25% QoQ
• ESOP expenses: ₹29 crore, down from ₹66 crore last quarter

Revenue growth, higher margins, and effective cost management highlight Pine Labs’ strength in navigating market challenges while continuing to expand its core business segments.