Pine Labs Q2 Results: Profit Jumps Over Six-Fold to ₹38.6 Crore as UPI Volumes Climb (October 29)

Pine Labs Q2 results, out on Thursday, October 29, showed a fintech that is finally making real money from the volumes it processes. Consolidated net profit for the September quarter came in at ₹38.6 crore against ₹6 crore a year earlier, ET Markets reported. That’s more than six times last year’s figure, off a small base, but still a big step up.

The market liked it. ET Markets said the stock rose as much as 7% intraday on the NSE and was trading 5.25% higher at ₹165.93 at 2:26 pm, against a previous close of ₹162.60.

Pine Labs Q2 results: the numbers that matter

Revenue from operations grew 24% year-on-year to ₹806.2 crore, from ₹650 crore. EBITDA (earnings before interest, tax, depreciation and amortisation) rose 67.3% to ₹126 crore from ₹75.3 crore, so operating profit grew far faster than sales. The EBITDA margin, which is EBITDA as a share of revenue, widened to 15.6%. NDTV Profit, citing the exchange filing, reported the same profit, revenue and margin figures.

• Net profit: ₹38.6 crore, versus ₹6 crore a year ago
• Revenue from operations: ₹806.2 crore, up 24%
• EBITDA: ₹126 crore, up 67.3%
• EBITDA margin: 15.6%, up roughly four percentage points

Where the growth came from

Most of it came from payments. Gross transaction value (GTV, the total value of payments run through its systems) across Pine Labs’ Flow, Affordability and Transaction Processing products rose 52% year-on-year, and UPI GTV grew more than 77%, according to ET Markets. The online payments business grew more than 45%, with its GTV up 140%.

The merchant base kept growing as well. The digital commerce platform (DCP) base rose 17% to 22.3 lakh, and the mid-market slice grew 49%. NDTV Profit reported that the group handled around 25 million transactions a day in the quarter, up 22%.

The issuing business grew more than 31%, with India up 40%, helped by newer categories such as employee benefits, corporate gifting and mobility. Overseas, Southeast Asia revenue rose about 40%. International markets made up 15% of quarterly revenue, and products launched in the last two years made up 14%.

The UPI angle

This is the part we’d watch. The company said more than 70% of transactions on its digital commerce platform already run on UPI. ET Markets reported that the company is positioning itself for possible UPI monetisation. Pine Labs said a merchant discount rate (MDR) framework for eligible person-to-merchant UPI transactions would be a growth opportunity, and it plans to roll out 10 lakh QR soundboxes over the medium term. If UPI pricing changes, a company that already runs this much UPI volume could gain a lot. If it doesn’t, that volume stays low-margin.

What it means for investors

Revenue grew, and profit and margins grew faster, which is the combination investors in a payments company want to see. NDTV Profit noted that the stock has still fallen more than 31% so far in 2026, though, so the market wants more than one good quarter. The company continues to target EBITDA margins above 20%, according to NDTV Profit, which leaves a clear gap to the current 15.6%. For another result from the same day, see our Coal India Q2 results story, and our guide on how to analyse quarterly results explains how to read margin moves like this one.

Disclaimer: This article is for information only and is not investment advice. Please do your own research or consult a SEBI-registered adviser before making investment decisions.