Pine Labs (PINELABS) investor relations material

Executive summary

• Q2 revenue from operations rose 24% YoY to INR 806.19 Cr; PAT reached INR 38.57 Cr, up 6x YoY.

• Adjusted EBITDA grew 27% YoY to INR 155 Cr; growth spanned acceptance and issuing, with international markets contributing 15% of quarterly revenue and recent products 14%.

• Platform processed ~25 million transactions daily, up ~22% YoY; GTV was ~INR 4.45 lakh Cr across 229 Cr transactions.

Financial highlights

• Consolidated Q2 revenue was INR 806.19 Cr versus INR 649.90 Cr YoY; H1 revenue was INR 1,543.11 Cr versus INR 1,265.81 Cr.

• Consolidated Q2 PAT was INR 38.57 Cr versus INR 5.97 Cr YoY; H1 PAT was INR 58.14 Cr versus INR 10.76 Cr.

• Adjusted EBITDA was INR 155 Cr, up 27% YoY, at 19.2% margin; contribution margin rose 18% YoY to INR 587 Cr.

• Flow-based income increased 25% YoY as related volumes grew nearly 50%; H1 GTV growth was 20%+, adjusted for cited business factors.

• International gift-card distribution revenue declined after a major retailer exited Singapore; management said the business had low contribution and no material EBITDA impact.

Outlook and guidance

• FY revenue growth is expected to exceed the 23%-23.5% outlook given at the start of the year; FY EBITDA margin expectation remains at least 21%, with H2 EBITDA materially higher than H1.

• Management aims to balance growth of 21–23% with EBITDA margins above 20%.

• Continued H2 growth is expected, supported by sales investment, gaming gift-card distribution, employee tax-benefit cards, and data- and marketing-related services.

• A consumer biller is scheduled to go live in Q3; an employee tax-benefit card is targeted for late November or early December.

• Monthly UPI GTV is targeted to average INR 34,000–35,000 Cr in FY28, with average ticket size of ~INR 1,400; 10 lakh QR soundboxes are planned over the medium term.