Fintech company Pine Labs reported a more than sixfold increase in consolidated net profit to Rs 38.6 crore in the second quarter ended September 2026 (Q2 FY27). The company had reported a net profit of Rs 6 crore in the year-ago period. Sequentially, profit nearly doubled from Rs 19.6 crore in the April-June quarter. 

Its revenue from operations surged 24% to Rs 806.2 crore as compared to Rs 650 crore in the year-ago period, helped by a wider merchant base, newer products and international expansion. On a quarter-on-quarter basis, it increased 9% from Rs 737 crore.

Including other income of Rs 25.6 crore, total revenue rose to Rs 831.7 crore during the quarter under review. Adjusted EBITDA rose 27% year-on-year (YOY) to Rs 155 crore, while total expenses increased 16% YoY to Rs 770.4 crore.

How Pine Labs earns revenue

Pine Labs reports its revenue across two business verticals—Digital Infrastructure and Transaction Platform and Issuing and Acquiring Platform.

Digital Infrastructure and Transaction Platform: Revenue from this segment increased 21% to Rs 531.6 crore in Q2 FY27, compared to Rs 440 crore a year earlier. This segment alone accounted for roughly 66% of Pine Labs’ operating revenue.

The fintech firm monetises this platform through subscriptions and transaction fees. Revenue is primarily earned from merchants, acquirers, credit partners, and consumer brands.

Offerings include point-of-sale (PoS) terminals, through which merchants accept in-store and online payments, smart billing systems, loyalty programme management, affordability solutions, and value-added services such as dynamic currency conversion.

Pine Labs processed 229 crore transactions during the quarter, while platform Gross Transaction Value (GTV) stood at Rs 4.45 lakh crore ($46.5 billion).

During Q2, the number of Digital Checkout Points (DCP) rose to 22.3 lakh, while the merchant base expanded to 11.6 lakh. Pine Labs said 27% of its revenue came from subscription fees at its DCPs in the July-September quarter. In its investor presentation, the fintech company said:

During the quarter, we have expanded multi-issuer affordability across leading electronics brands in Malaysia with 13 issuers already onboarded.

Online Payments expanded through agentic commerce and cross-border payments, while Fintech Infrastructure continued to scale with transactions growing 33%+ YoY and SignalIQ now processing 125,000+ loans.

Earlier this year, Pine Labs launched an agentic payment protocol dubbed P3P, which allows AI agents to make UPI payments on behalf of users, within set limits. However, some privacy concerns remain. 

Issuing and Acquiring Platform: Revenue from this vertical jumped 31% to Rs 274.6 crore in Q2 FY27 from Rs 210 crore in the same quarter last year. This includes revenue primarily from issuing and processing services, distributing prepaid cards, interest on funds held for customers, and breakage income.

Consumer brands and enterprises use Pine Labs’ issuing solutions to offer prepaid cards for gifting, promotions, cashback, wallets, refunds, rewards, loyalty programmes, company-issued expense cards for employees, and employee and channel incentives.

Additionally, it serves as a technology partner for financial institutions by enabling payment acceptance at merchant stores, merchant acquiring, and credit disbursal through its affordability solutions.

Pine Labs also offers issuing and acquiring solutions to financial institutions, enabling the issuance of credit cards, debit cards, prepaid cards, and forex cards to consumers, as well as merchant acquiring solutions.

  • India business: Saw significant growth momentum, with revenue growing 40%+ YoY. In processing, large tenured clients continue to see strong growth momentum, validating the potential of prepaid solutions as a great engine for driving commerce. In distribution, we expanded rapidly across network and partners.
  • Broadening prepaid opportunity: Gaming continues to scale, with emerging growth avenues across employee benefits, refund wallets, entertainment gifting (4x GTV YoY), corporate rewards (GTV +70% YoY H1) & mobility gaining traction over a small base.
  • International anchoring for scale: Six airlines live in H1 FY27 (highest-ever first half, with another marquee go-live in H2), plus a multi-year renewal with a large ANZ retail conglomerate — moving international revenue beyond transactional economics.

Together, these products are unlocking newer, higher-value revenue vectors, the company said.

Where did Pine Labs spend in Q2? Of the total expenses of Rs 770.4 crore in Q2, the company spent Rs 267.7 crore on employee costs.

“While we continue to optimise the employee cost (employee cost has decreased from 37% to 30% of revenue YoY), we continue to invested in talent in 3 fast-growing areas: mid-market (DCPs up 49% YoY), international business development (SEA revenue up 40% YoY) and towards product teams (SignalIQ, Switchboard, Agentic Payments),” said Pine Labs.

Pine Labs continued investing in data, cloud and technology infrastructure, with related costs accounting for 8% of revenue. The investment is largely directed towards:

  • New strategic projects: Agentic Commerce, Information Security, OMC business scale-up, International expansion, and our long-term engagement partnership with OpenAI.
  • OEM-agnostic Terminal Management System
  • AI adoption across internal platforms: tele sales effort reduced by 60%, 89% of code changes written by AI, and 60%+ of email queries responded to by AI. Each builds capability and compounds productivity.

On UPI MDR

We’re uniquely positioned to capitalise on this opportunity. Today, 70%+ of our DCP transactions are UPI-led, and we’re processing Rs 20k crore in monthly UPI GTV—growing at 68% CAGR over the last two years. We expect to sustain this growth momentum and believe we are on track to process Rs 33-34k crore monthly GTV in FY28.

Our average UPI ticket size is Rs 1,400 as of Q2 FY27 with more than 65% of our UPI GTV driven by transactions above Rs 2,000. Combined with our stronghold in enterprise, mid-market, and premium retail segments, where transactions above Rs 2,000 are common, we are well positioned.

Under NPCI’s proposed framework, a 0.4% MDR cap applies to payments above Rs 2,000, and we primarily expect to earn our proportion through our acquiring bank partners—a high-margin revenue stream that scales with volumes.

Rollout has been deferred pending regulatory clarity, but our distribution, technology, and operations are ready to execute immediately once the final framework and implementation date are announced. — Pine Labs

Key operational metrics (Q2 FY27)

  • Platform GTV: Rs 4.45 lakh crore
  • Digital Infrastructure and Transaction Platform GTV: Rs 4.27 lakh crore
  • Issuing and Acquiring Platform GTV: Rs 18,000 crore
  • Number of transactions: 229 crore
  • Fintech infrastructure transactions: 37 crore
  • Digital checkout points (DCPs): 22.3 lakh
  • Number of merchants: 11.6 lakh
  • Prepaid cards issued: 28 lakh

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