Pine Labs Q2: profit rises six-fold to Rs 39 crore, revenue up 24%

Pine Labs, the Indian company that runs card machines and payment software for shops and businesses, reported a net profit of about Rs 39 crore (Rs 38.57 crore) for July to September 2026, the second quarter of the 2026-27 financial year, up from Rs 5.97 crore a year earlier. Revenue rose 24% to about Rs 806 crore from about Rs 650 crore, and the number of transactions handled on its platforms rose to 229 crore from 188 crore. The results put the company's shares in focus on Thursday, October 29, 2026.

Pine Labs works behind the shop counter. When a customer taps a card at a store, pays in instalments for an appliance or uses a gift card, the terminal or software handling the payment may be one supplied by a company like Pine Labs. Its second business, issuing and acquiring, handles the systems that issue prepaid and gift cards and process payments for merchants. Both parts make money mainly from fees on transactions and from selling software and services to businesses.

The results matter because Indian fintech companies have long been criticised for growing fast without making money. Pine Labs returned to profit in the same quarter last year, after a loss of about Rs 32 crore a year before that, and has now increased that profit sharply. The rise in EBITDA margin, from 11.6% to 15.6%, shows that more of each rupee of revenue is turning into operating profit as the business grows, which is the main thing investors want to see from a technology platform.

There are details behind the headline number. Part of the jump in profit came from a lower tax rate: the effective tax rate was about 37% in the quarter, compared with 48% in the previous three months. Margins also look higher on the company's own adjusted measure, which strips out some costs, at about 19%. Readers comparing companies should note which measure is being quoted.

For businesses, the figures point to steady growth in digital payments at the shop counter. Transactions rose about 22% in a year, from 188 crore to 229 crore. Alongside UPI, the instant payment system run under the National Payments Corporation of India, merchants also use card machines, instalment (EMI) options and gift cards, and the company's numbers show that business growing. Management has said it is aiming for revenue growth of 21% to 23% with EBITDA margins above 20%, though these are targets, not guarantees.

Short-term: The results are likely to keep Pine Labs' shares in focus as investors weigh the profit jump against the role of the lower tax rate.

Long-term: If margins keep rising towards the company's 20% target, it would strengthen the case that Indian payment platforms can be consistently profitable, which could help other fintech firms raise money and list.

Who is affected: Pine Labs shareholders and employees, the shops and brands that use its terminals and software, and investors judging the wider fintech sector.

Questions and Answers