Pine Labs Reports First Quarterly Profit Ahead of IPO; Targets $4–5 Billion Valuation

Merchant commerce and payments platform Pine Labs has reported its first-ever quarterly profit for its India unit in the three months ended June 2025 (Q1 FY26), signaling a major financial milestone as the company moves closer to its highly anticipated initial public offering (IPO).

According to its Red Herring Prospectus (RHP) filed with the Securities and Exchange Board of India (SEBI), Pine Labs posted a net profit of Rs 4.8 crore in Q1 FY26, compared to a loss of Rs 28 crore in the same quarter last year. The profit was aided by a deferred tax credit of Rs 14 crore, even though the company reported pre-tax losses of Rs 4.8 crore.

This development marks a crucial turnaround for the Peak XV Partners-backed fintech company, which has been steadily reducing losses over the past two years while expanding its product ecosystem and merchant base across India.

Revenue Growth and Operational Performance

Pine Labs’ operating revenue rose 18% year-on-year (YoY) to Rs 616 crore in Q1 FY26, up from Rs 522 crore in Q1 FY25. The company’s total income surpassed the Rs 650 crore mark during the half year, underscoring its strong operational momentum.

The company’s transaction processing and settlement services segment contributed nearly 70% of total revenue, climbing 14% YoY to Rs 432 crore. Meanwhile, income from device sales, plastic cards, and other services jumped 57% to Rs 88 crore, reflecting Pine Labs’ efforts to diversify its revenue streams beyond core payment processing.

On the expenditure front, employee benefits remained the largest cost component, accounting for 44% of total spending, and increasing 25% to Rs 291 crore during the quarter. Material costs stood at Rs 71 crore, while transaction-related expenses, depreciation, and finance costs pushed total expenditure up 17.5% to Rs 658 crore in Q1 FY26.

Annual Performance and Financial Resilience

For FY25, Pine Labs recorded an operating revenue of Rs 2,274 crore, up 28.5% from Rs 1,769 crore in FY24. The company also managed to narrow its net loss to Rs 145 crore from Rs 341 crore in the previous fiscal year.

Another key metric — Adjusted EBITDA (excluding ESOP costs) — nearly doubled to Rs 356 crore in FY25 from Rs 158 crore in FY24. This improvement highlights the company’s enhanced cost efficiency and operational leverage as it scales its merchant network and technology infrastructure.

IPO Details and Valuation Outlook

Pine Labs’ IPO is expected to comprise a fresh issue worth Rs 2,080–2,600 crore, alongside an offer for sale (OFS) of 8.23–14.78 crore shares by existing investors. The selling shareholders include Peak XV Partners (formerly Sequoia Capital India), Temasek, PayPal, Mastercard, Invesco, Madison India, and Sofina Ventures.

According to media reports, Pine Labs is targeting a valuation between $4 billion and $5 billion, reflecting investor confidence in the company’s leadership position in India’s merchant payments ecosystem and its expanding regional footprint.

Business Expansion and Market Reach

Pine Labs continues to strengthen its merchant and institutional network, which grew to 954,000 merchants as of FY25, processing over 5.7 billion transactions during the year. The company also expanded its partnerships to include 198 financial institutions and 690 consumer brands, deepening its presence across diverse retail segments.

In the June 2025 quarter, Pine Labs processed a gross transaction value (GTV) of $46 billion, translating to an annualised GTV of $185 billion, underscoring its scale and reliability in powering India’s digital commerce landscape.

The company’s growth is backed by a strong portfolio of offerings, including merchant payments, prepaid and gift cards, buy-now-pay-later (BNPL) solutions, and digital invoicing, catering to both offline and online businesses.

Outlook

Pine Labs’ transition to profitability marks a defining moment in India’s fintech evolution, showcasing how operational efficiency and strategic diversification can translate into financial strength.

As it prepares for its IPO, the company appears well-positioned to leverage its technology-led ecosystem and merchant relationships to drive sustained growth. With investor interest building and profitability achieved, Pine Labs’ Q1 FY26 performance signals renewed confidence in India’s fintech story — one increasingly shaped by scale, innovation, and disciplined execution.

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