Pine Labs (PINELABS) investor relations material

Executive summary

• Achieved record Q2 FY2026 results with 18% year-over-year revenue growth to INR 650 crores, 6% sequential growth, and international markets contributing 17% of revenue, up from 15% a year ago.

• Adjusted EBITDA rose over 60% year-over-year to INR 122 crores, with margins expanding from 14% to 19% and two consecutive quarters of positive PAT at INR 6 crores.

• Platform processed nearly $50 billion in GTV and 1.9 billion transactions, reaching over 1 million merchants and corporates.

• Profit after tax turned positive at INR 6 crores, a swing of INR 38 crores year-over-year from a loss of INR 32 crores in Q2 FY25.

• Launched innovative products, including Tap to Pay Online and programmable currency solutions, with patents and global GTM plans.

Financial highlights

• Net revenues (adjusted for payment processing costs) reached INR 650 crores, with contribution margin at 77%.

• Adjusted EBITDA margin expanded by 500 bps to 19% from 14% a year ago.

• International business grew 30% year-over-year, with strong dollar-based earnings across Southeast Asia, Australia, UAE, and the U.S.

• Number of transactions grew 44% YoY to 1.9 billion in Q2 FY26.

• Operating positive cash flow was INR 241 crores (excluding early settlement) and INR 152 crores (including early settlement) for the quarter.

Outlook and guidance

• Expectation of continued operating leverage, with 50-57% of incremental contribution margin flowing to adjusted EBITDA.

• Margins seen as sustainable and likely to expand as scale increases.

• Q3 and Q4 anticipated to be seasonally strong, with further PAT improvement expected.

• Focus on international expansion and higher-margin businesses, with online payments and issuing/affordability segments outpacing in-store payments.

• Management expects continued operating leverage and margin expansion as higher-margin businesses grow faster.