PINELABS

Pine Labs operates in two main business lines: digital infrastructure and transactions, and issuing and acquiring. The digital infrastructure and transactions segment comprises offline and online infrastructure, flow-related transaction services, and Fintech infrastructure for banks, financial institutions, and merchants. The issuing and acquiring side now accounts for approximately 30% of total revenues, focusing on where money is held and sent. The company has reached almost 2 million touch points and is making significant progress in its online business, now present with the top three e-commerce and quick-commerce companies.

For FY26, Pine Labs reported a 19% revenue growth and adjusted EBITDA of ₹559 crores, up from ₹357 crores, reflecting a 500 basis points improvement in EBITDA margin. PAT stood at ₹113 crores. The company generated ₹676 crores in operating cash flow in Q4 alone, bringing the full year total to ₹395 crores. For FY27, Pine Labs has provided a hard revenue guidance of 21% to 23.5% year-on-year, with expectations of significantly improved adjusted EBITDA.

Pine Labs achieved approximately $200 billion in payment volume for FY26, indicating strong market share gains across both offline and online segments. The online business grew by 60% year-on-year. The company has also improved unit economics by 7% in certain business segments over the last six months. Management noted increased visibility of Pine Labs terminals in various metros and sectors, including restaurants and petrol pumps, reflecting successful direct-to-merchant strategies.

The affordability business continues to gain market share, increasing the number of brands and NBFC partnerships to deliver credit at the point of purchase. While some credit card players are pulling back on offers, new opportunities are emerging in sectors like Electric Vehicles (EVs) and non-consumer durables. The issuing business has shown tremendous growth, not just in India but also in global markets, driven by new use cases like wallets and rewards. Pine Labs is also preparing to launch an employee benefits program in the coming weeks and quarters.

Pine Labs is heavily investing in AI, with almost 89% of new code written in the last two quarters being AI-generated. This enhances efficiency, improves legacy platforms, and facilitates new product development. The company has partnered with Anthropic and OpenAI to leverage AI in local markets, integrating it into consumer-facing touchpoints and developing workflows for agentic commerce and UPI payments.

The company holds ₹2700 crores in cash and is organically generating free cash flows, ensuring it is well-capitalized for growth initiatives. Capex for FY26, including DCPs, was around ₹160-170 crores on a run-rate basis, with a Q4 figure of ₹238 crores due to advances for chip shortages. Management clarified that a Q4 D&A increase was a one-time^📎 year-end cleanup. The company is not looking to raise funds and is comfortable with its current financial position.