Pine Labs Q2 results: Net profit rises 84% to nearly Rs 39 crore; shares up over 6%

Consolidated revenue rose 24 percent to Rs 806.2 crore in the quarter ended September, from Rs 650 crore in the year-ago period. The company recorded its fastest revenue growth in five quarters. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 67.3 percent to Rs 126 crore from Rs 75.3 crore a year earlier. The EBITDA margin improved to 15.6 percent from 11.6 percent.

Commenting on the results, Pine Labs Chief Executive Officer Amrish Rau said the company recorded growth in both its acceptance and issuing businesses during the quarter. International markets contributed 15 percent of revenue, while products launched over the past two years accounted for 14 percent of revenue, he said. Rau said the company has been EBITDA-positive for a long time and continues to balance investments in new products, ideas and geographies with its focus on profitability.

Pine Labs aims to sustain revenue growth of 21-23 percent while achieving EBITDA margins of over 20 percent, he added. The company said its average Unified Payments Interface (UPI) ticket size stood at around Rs 1,400 in Q2 FY27, with transactions above Rs 2,000 accounting for more than 65 percent of its UPI gross transaction value (GTV). More than 70 percent of transactions on its digital commerce platform (DCP) are UPI-led.

The company processes around Rs 20,000 crore in monthly UPI GTV, which has grown at a compound annual growth rate (CAGR) of 68 percent over the past two years. Pine Labs expects the momentum to continue and is targeting monthly UPI GTV of around Rs 33,000-34,000 crore in FY28.