Pine Labs (PINELABS) Q4 25/26 earnings summary

Executive summary

• Achieved 19% year-over-year revenue growth for FY 2026, with strong momentum in both offline and online businesses and first full year of profitability with PAT of ₹113 Cr, reversing a prior year loss of ₹145 Cr.

• Adjusted EBITDA rose to ₹559-560 Cr, up 57% YoY, with margin expansion from 16% to 21% and a 500 basis point improvement.

• Operating cash flow for FY26 reached ₹395 Cr, an 8x increase YoY, with Q4 alone generating ₹676 Cr, the highest quarterly figure to date.

• Gross Transaction Value (GTV) processed was $194-$200 billion, up 50% YoY, with UPI volumes up 68% and over 20 million daily transactions.

• International expansion, especially in Southeast Asia and the Middle East, contributed to growth, with international revenue exceeding ₹400 Cr and notable wins in the Philippines and UAE.

Financial highlights

• FY26 revenue from operations: ₹2,711 Cr (19% YoY growth); Q4 FY26 revenue: ₹701 Cr (17% YoY growth).

• Adjusted EBITDA for FY26: ₹559-560 Cr (21% margin, 57% YoY growth); Q4 FY26: ₹146 Cr (21% margin, 73% YoY growth).

• PAT for FY26: ₹113 Cr (from -₹145 Cr YoY); Q4 FY26 PAT: ₹59 Cr (from -₹29 Cr YoY).

• Operating cash flow for FY26: ₹395 Cr (8x YoY); Q4 FY26: ₹676 Cr, driven by collections and working capital efficiency.

• Contribution margin remained strong at 74-75% for the year, with a 2-3% expected variance due to business mix.

Outlook and guidance

• Revenue guidance for FY27 is 21%-23.5% year-over-year growth, with Q1 expected at the lower end of the range.

• Management expects to utilize remaining IPO proceeds by FY28 for expansion, technology, and acquisitions.

• Focus on expanding international presence, leveraging AI-driven solutions, and deepening platform monetization.

• Confident in further improving Adjusted EBITDA and operating cash flow in FY27.

• No material impact expected from recent softness in Middle East or airline segments; chip shortages resolved.