IPO-Bound Pine Labs Turns Profitable In Q1 FY26 On Tax Credit

Fintech major Pine Labs turned profitable in the first quarter of the current fiscal year (Q1 FY26) ahead of its public listing this month. The company reported a net profit of INR 4.8 Cr in the June quarter as against a loss of INR 27.9 Cr in Q1 FY25.

However, it is pertinent to note that the company would have remained in the red during the period under review if not for a tax credit of INR 9.6 Cr. Pine Labs posted a loss before tax of INR 4.8 Cr during the quarter under review.

Meanwhile, the company’s revenue from operations zoomed almost 18% to INR 615.9 Cr in Q1 FY26 from INR 522.4 Cr in the year-ago period. Including other income of INR 37.1 Cr, total income stood at INR 653.1 Cr during the quarter under review.

Yesterday, Pine Labs filed its RHP for its initial public offering (IPO), which will comprise a fresh issue of up to INR 2,080 Cr and an offer for sale (OFS) of up to 8.23 Cr shares. The company has reduced the size of the issue. As per its DRHP, its IPO was to comprise a fresh issue of up to INR 2,600 Cr and an OFS of up to 14.78 Cr shares.

The IPO will open on November 7 and close on November 11. The shares are expected to get listed on the exchanges on November 14.

As per the RHP, Pine Labs narrowed its net loss by 57% to INR 145.4 Cr in FY25 from INR 341.9 Cr in the previous fiscal year. Its operating revenue rose 28% to INR 2,274.3 Cr from INR 1,769.5 Cr in FY24, while total expenses grew 9.2% to INR 2,426.9 Cr in FY25 from INR 2,221.7 Cr in the previous fiscal year.

Founded in 1988 by Lokvir Kapoor, Rajul Garg and Tarun Upadhyay, Pine Labs offers digital payments and issuing solutions for merchants, consumer brands and enterprises, and financial institutions in India as well as overseas markets like Malaysia, the UAE, Singapore, Australia, the US and Africa.

The company serves over 9.2 Lakh merchants, 666 consumer brands and enterprises and 164 financial institutions.

Now, let’s take a look at the breakdown of Pine Labs’ expenses in Q1 FY26.

Where Did Pine Labs Spend In Q1?

In line with the revenue growth, the company’s total expenses in the quarter ended June grew 17% to INR 657.8 Cr from INR 559.6 Cr in the year-ago period.

Procurement Cost: The spending under this head surged 54.4% to INR 76.6 Cr from INR 49.6 Cr in Q1 FY25. Procurement cost includes expenses for terminals, soundboxes, hardware, and gift cards.

Employee Benefit Expenses: Employee costs, which include salaries, provident fund, gratuity, among others, grew 25% in Q1 FY26 to INR 291.3 Cr from INR 232.8 Cr in the same period last fiscal.

Transaction & Related Costs: Pine Labs’ expense under this bracket declined 2.4% to INR 59.5 Cr during the quarter under review from INR 61 Cr in Q1 FY25.

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