Pine Labs posted a robust start to FY27, reporting double-digit revenue growth and a sharp improvement in profitability on the back of higher digital payment volumes, an expanding merchant base, and deeper adoption of its payments and fintech offerings. The company also advanced its AI-led initiatives and international expansion while retaining its full-year growth outlook.
Revenue and profit rise in Q1 FY27
For the quarter ended June 2026, consolidated revenue from operations rose 20% year-on-year to ₹736.92 crore from ₹615.91 crore in Q1 FY26. Profit after tax increased to ₹19.57 crore from ₹4.79 crore, while profit before tax improved to ₹37.73 crore compared with a loss of ₹4.84 crore a year earlier.
Total income stood at ₹765.87 crore, including other income of ₹28.95 crore. Total expenses grew 10.6% to ₹728.14 crore, with employee costs remaining the largest component at ₹267.52 crore.
Adjusted EBITDA came in at ₹126 crore, translating to a 17.1% margin versus 20% in the prior year, supported by a healthy contribution margin of 72.3%.
The effective tax rate was elevated at 48% due to unabsorbed losses in certain overseas units that could not be offset against domestic profits. Management expects this to normalise to about 28%–30% by end-FY27. On a standalone basis, revenue from operations was ₹535 crore and profit after tax was ₹43.66 crore.
Stronger transactions and AI-led efficiencies
Pine Labs processed nearly $45 billion in gross transaction value during the quarter, reflecting broad-based momentum across its platform.
The flow, affordability and transaction processing portfolio handled ₹91,000 crore of throughput, up 54% year-on-year. UPI value grew over 80%, while Dynamic Currency Conversion volumes increased more than 40%.
Total transactions reached 201 crore in the quarter. Within this, the fintech infrastructure business processed 34 crore transactions, a 37% year-on-year rise.
The digital checkout network expanded to 21.7 lakh devices, up 18% from last year, with UPI accounting for over 70% of transactions on these terminals. The merchant base rose to 11.5 lakh, and more than 40 new online merchants were added across quick commerce, D2C brands, travel and enterprise segments.
Deployment of payment terminals at oil marketing company outlets progressed as planned, with nearly one lakh units rolled out across Q4 FY26 and Q1 FY27.
AI featured more prominently in operations. The company’s AI-driven telesales system reduced manual sales efforts by nearly 60%. AI supported 89% of software code changes, covering about 1.5 million lines of code. Correspondingly, spend on cloud, data and technology infrastructure rose 33% to ₹64 crore.
Shopflo integration, new products and overseas growth
Pine Labs completed the acquisition of Shopflo Technologies for ₹88 crore. Since joining in May 2026, Shopflo has enabled over ₹400 crore in transaction volumes for D2C brands and small businesses.
The company introduced new offerings, including an agentic payment protocol on UPI that allows AI agents to execute payments within user-defined limits, and Credit Line on UPI, enabling access to bank-issued credit via UPI IDs.
International operations continued to scale, with overseas revenue up 21% year-on-year to ₹114 crore, contributing around 16% of total revenue. The quarter saw deeper presence in the Philippines, Singapore and the UAE, alongside strengthened partnerships with banks and airlines, including British Airways and TAROM.
Outlook and capital markets plan
Pine Labs reiterated its FY27 revenue growth guidance of 21%–23.5% and expects EBITDA margins to improve as sales productivity rises.
The company is preparing for an India listing after shifting its legal headquarters from Singapore. Market reports indicate a potential public issue of ₹5,000–₹6,000 crore at a valuation in the $4–5 billion range.
Following the Q1 FY27 announcement, Pine Labs’ shares rose nearly 5% intraday before closing 2.69% higher, reflecting investor optimism about execution and growth trajectory.
