Pine Labs on Wednesday posted a revenue for the second consecutive quarter, because the newly listed funds firm lower depreciation and ESOP prices whereas higher-margin companies lifted earnings.
In Q2 FY26, Pine Labs’ web revenue rose to Rs 5.97 crore, in contrast with a lack of Rs 32.01 crore a 12 months earlier. Sequentially, revenue rose marginally from Rs 4.79 crore in Q1.
In the meantime, income from operations climbed 18% year-on-year to Rs 649.90 crore from Rs 551.57 crore in the identical interval final 12 months. Complete earnings rose to Rs 672.91 crore in opposition to Rs 573.53 crore a 12 months earlier.
On Wednesday, Pine Labs closed 0.84% decrease, buying and selling at Rs 247.60 apiece on the Bombay Inventory Change.
Complete bills additionally rose a bit over 8% YoY to Rs 661.68 crore from Rs 611.83 crore a 12 months earlier, holding value progress nicely beneath the tempo of income growth.
Working efficiency improved sharply. Adjusted EBITDA greater than doubled to Rs 122 crore, increasing the margin to 19% from 14% earlier. Contribution margin rose 21% YoY to Rs 497 crore, helped by Pine Labs’ shift towards software-led, asset-light merchandise and decrease {hardware} depth.
Profitability additionally benefited from declining device-related depreciation as the corporate moved to a capex-light mannequin, in addition to from a drop in ESOP bills, with older grants nearing expiry and newer grants issued nearer to truthful market worth. Depreciation on units fell to about 5% of income from 7% a 12 months earlier.
Pine Labs has moderated hiring, with worker prices rising 9% YoY on a modest 6% improve in headcount. The corporate mentioned each Rs 100 of incremental contribution margin now generates Rs 50–57 of incremental adjusted EBITDA, underscoring working leverage.
The corporate claimed to have processed its highest-ever quarterly gross transaction worth of over $48.2 billion (Rs 4.24 lakh crore), whereas the full transactions it processed throughout Q2 rose 44% YoY to 1.9 billion.
Worldwide operations continued to develop, rising roughly 30% YoY and contributing 17% of income. Pine Labs mentioned it now serves shoppers throughout 20 international locations, with programmes stay for giant retailers, fintechs, and airways in Southeast Asia, the Center East, Australia, and america.
The fintech firm made a powerful debut on the Indian inventory exchanges final month, opening nicely above its problem worth. The inventory started buying and selling at Rs 242 on the BSE and NSE—a 9.5% premium to its problem worth of Rs 221.
The corporate had priced the providing inside Rs 210–221 per share. With a stable investor demand, the IPO drew bids for twenty-four.09 crore shares in opposition to 9.79 crore on supply, translating to a 2.46-times subscription.
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