Pine Labs Q2 profit rises 6.5 times to Rs 39 crore
Payments firm Pine Labs reported Rs 806 crore operating revenue and Rs 39 crore net profit for July-September 2026, up from Rs 6 crore a year earlier.
Pine Labs, the payments company that makes card machines and runs checkout and lending tools for merchants, reported a net profit of Rs 39 crore for the July-September quarter of 2026-27 (Q2 FY27), against about Rs 6 crore a year earlier. Revenue from operations rose 24% to Rs 806 crore, according to Entrackr's report of 29 October 2026, which drew on statements sourced from the NSE. For a sector that spent years losing money, the question is whether this is lasting profit or a good quarter.
What the Q2 numbers show
Operating revenue was Rs 806 crore, up from Rs 650 crore. Adding Rs 26 crore of non-operating income (money earned outside the main business, such as interest) takes total income to Rs 832 crore. Total spending rose 16% to Rs 770 crore, from Rs 662 crore. Revenue grew faster than costs, and that gap is where the profit came from.
Employee costs, the largest item at roughly 35% of spending, were flat at Rs 268 crore. The cost of materials, which includes the card machines it sells or leases, was Rs 116 crore. Transaction-related costs grew fastest, up 45% to Rs 103 crore.
Where the revenue comes from
Pine Labs reports two main segments. The "digital infrastructure and transaction platform" (the machines, software and EMI tools merchants use to take payments) earned Rs 532 crore, up 21%, about two-thirds of operating revenue. The "issuing and acquiring platform" (technology that helps banks issue cards and merchants accept them, plus gift cards and rewards) earned Rs 275 crore, up 31%.
The faster-growing segment is the smaller one, so the mix is shifting slowly. Inc42's profile of the company says that in 2025-26 the first segment made Rs 1,837 crore and the second Rs 874 crore.
How this compares with earlier quarters
Pine Labs listed in India after merging its Singapore holding company into its Indian entity in 2025, Inc42 reports. The same article says it made a loss of Rs 145.5 crore in 2024-25 and its first full-year consolidated profit, Rs 112.5 crore, in 2025-26 on revenue of Rs 2,710.6 crore.
The June 2026 quarter was weaker on one measure. Kotak Neo reports Q1 FY27 revenue of Rs 737 crore, up 20%, and profit after tax of about Rs 20 crore. Inc42 notes that adjusted EBITDA (operating profit before some non-cash and one-off items) grew only 5% to Rs 126 crore, and its margin slipped from 19.6% to 17.1% as technology spending rose. Management's guidance for 2026-27 is revenue growth of 21% to 23.5%, with margins expected to improve in the second half. Q2 revenue growth of 24% sits just above that range.
What is confirmed and what is not
Confirmed by the reported statements: revenue, total income, expenses and net profit for the quarter. Not confirmed: Entrackr says first-half profit was Rs 99 crore, "almost 16 times" last year. That does not add up neatly with Kotak Neo's Q1 profit of about Rs 20 crore plus Rs 39 crore for Q2, which gives roughly Rs 59 crore. We have not seen the company's filing, so we do not rely on the Rs 99 crore figure. We also cannot say whether one-off items helped Q2, or what the adjusted EBITDA margin was.
What it means for merchants, investors and founders
For merchants, a profitable terminal and checkout provider is more likely to keep supporting and upgrading its machines. For fintech founders, the quarter shows that payments infrastructure can earn money when costs are held flat, not only by growing. Inc42 lists PhonePe, Paytm, Razorpay and Cashfree among competitors, so pricing pressure is a real risk to margins.
What to watch next
- The company's own filing and investor presentation for Q2 FY27, which should give the adjusted EBITDA margin and settle the first-half profit figure.
- Whether the second half delivers the margin improvement management has guided to.
- Growth in transaction-related costs, which outpaced revenue in Q2.
Key takeaways
- Pine Labs reported Rs 39 crore net profit and Rs 806 crore operating revenue for July-September 2026, per Entrackr.
- Profit rose mainly because revenue grew 24% while total spending grew 16% and employee costs stayed flat.
- Transaction-related costs rose 45%, faster than revenue, so margin pressure has not gone away.
- Entrackr's first-half profit figure does not match the quarterly numbers we could check, so it should be verified against the filing.
Sources
- [Entrackr: Pine Labs crosses Rs 800 Cr revenue in Q2 FY27; profit jumps 6.5X](https://entrackr.com/fintrackr/pine-labs-crosses-rs-800-cr-revenue-in-q2-fy27-profit-jumps-65x-12764550)
- [Kotak Neo: Pine Labs Q1 FY27 results, revenue up 20%](https://www.kotakneo.com/news/stocks/pine-labs-q1-fy27-results-revenue-up-20-percent/)
- [Inc42: How Pine Labs shifted gears from PoS devices to an AI-powered fintech stack](https://inc42.com/features/how-pine-labs-shifted-gears-from-pos-devices-to-an-ai-powered-fintech-stack/)
Tags: Pine Labs Fintech digital payments Quarterly results Payments infrastructure