Noida-based Pine Labs reported a net profit of ₹38.6 crore for the September quarter (Q2 FY27), against ₹6 crore a year earlier, according to its exchange filing on Thursday, October 29. Revenue from operations rose 24% to ₹806.2 crore, and the shares rose as much as 7% on the NSE to an intraday high of ₹173.80.
Profit grew much faster than revenue. Gross transaction value across the Flow, Affordability and Transaction Processing products rose 52%, and UPI transaction value rose by more than 77%. The company plans to deploy 10 lakh QR soundboxes over the medium term to widen UPI acceptance among retail merchants. Online payments grew more than 45%, and the issuing business, which runs gift, benefit and prepaid cards, grew more than 31%.
Outside India, Southeast Asia revenue grew about 40%, and international markets made up 15% of revenue. Pine Labs plans to take its Malaysia model to the UAE, the Philippines and Singapore.
- Net profit: ₹38.6 crore (₹6 crore a year earlier)
- Revenue from operations: ₹806.2 crore, up 24%
- EBITDA: ₹126 crore, up 67.3%; margin 15.6% against 11.6%
- Merchant base on its digital commerce platform: 22.3 lakh, up 17%
Why it matters: Pine Labs grew up selling card terminals, so a 77% rise in UPI value and a large soundbox rollout show it following merchants to the payment method they use most. The timing matters: NPCI plans a 0.4% merchant discount rate on larger UPI merchant payments after Diwali, which would let acquirers earn fees on transactions that are free today. The next few quarters should show whether margins keep rising as lower-priced UPI volume grows faster than card volume.
Source: The Economic Times; NDTV Profit; Pine Labs investor relations
Image: SeekeroftheCosmos, CC0, via Wikimedia Commons
