Fintech platform Pine Labs Limited delivered a robust performance in the third quarter of FY26, marked by strong revenue growth, significant margin expansion, and a return to profitability. The company reported steady momentum across its payments, issuing, and digital infrastructure businesses, reflecting operating leverage and disciplined cost management.
Revenue and Scale Continue to Expand
For the quarter ended December 31, 2025, Pine Labs recorded revenue from operations of ₹744 crore, registering a 24 percent year-on-year increase. The growth was driven by continued expansion in its issuing, affordability, and online payments segments. During the quarter, the company processed its highest-ever quarterly Gross Transaction Value (GTV) of approximately $51 billion (₹4.5 lakh crore), representing a 29 percent year-on-year increase. The total number of transactions rose 23 percent to nearly 193 crore, highlighting deeper merchant engagement and higher platform usage.
The company’s merchant network also expanded steadily, with the number of merchants increasing 14 percent year-on-year to around 10.5 lakh, while digital checkout points grew 11 percent to approximately 19.3 lakh.
Profitability Improves on Strong Operating Leverage
Pine Labs reported a sharp improvement in profitability during Q3 FY26. Adjusted EBITDA increased 59 percent year-on-year to ₹171 crore, with margins expanding from 18 percent in the same quarter last year to 23 percent. The improvement was supported by a favorable business mix, higher contribution from margin-accretive products, and prudent cost controls.
Contribution margin for the quarter stood at ₹551 crore, up 19 percent year-on-year, translating to a contribution margin of 74 percent. The company noted that for every ₹100 increase in contribution margin, adjusted EBITDA increased by more than ₹50 during the quarter, underlining strong operating leverage.
Profit after tax (PAT) stood at ₹42 crore, compared to a loss of ₹57 crore in Q3 FY25. The reported PAT includes an exceptional charge related to the implementation of new labour codes; excluding this, PAT would have been approximately ₹52 crore, indicating a further strengthening of underlying profitability.
Product Innovation and Market Expansion
During the quarter, Pine Labs added over 100 new marquee clients across its offerings, including global and domestic brands such as Honeywell, Philips, Miniso, Blinkit, and Mumbai Duty Free. The company also expanded its international footprint by launching in-store payments and affordability solutions in Singapore, supporting leading retail brands.
Product innovation remained a key focus, with the addition of agentic bill payments, mAadhaar integration, Apple Pay, and subscription-based UPI autopay features. Pine Labs also launched co-branded prepaid programs in partnership with expense management platforms, further diversifying its product portfolio.
Pine Labs’ Q3 FY26 performance reflects a combination of sustained revenue growth, improving margins, and a clear path to profitability. With continued investments in product innovation, international expansion, and merchant ecosystem growth, the company remains well-positioned to capitalize on long-term digital payments and fintech opportunities.
Source : Pine labs Q3 FY26 Press release
