Pine Labs (PINELABS) Q3 25/26 earnings summary

Executive summary

• Achieved record Q3 results with revenue of INR 744 crore, up 24% year-over-year, and PAT of INR 42 crore, despite a one-time INR 12 crore labor law impact.

• Adjusted EBITDA increased 59% year-over-year to INR 171 crore, with margin expansion from 16% to 23%, reflecting strong operating leverage.

• Processed $51 billion in payment volumes in Q3, surpassing $200 billion in cumulative transaction processing.

• Strong market share gains in both domestic and international markets, with continued expansion and new client wins, including Wio Bank and a Sri Lankan card issuer.

• Profitability improvement supported by lower depreciation and stable ESOP expenses.

Financial highlights

• Total income for the quarter was INR 779.72 crore, up from INR 601.64 crore in the same quarter last year.

• Contribution margin at INR 551 crore, with a steady 76% margin over nine months.

• Adjusted EBITDA margin expanded by over 5 percentage points year-over-year, reaching 23% for Q3.

• PAT at INR 42 crore, would have been INR 52 crore excluding the labor law adjustment.

• Operating cash flow for Q3 FY26 was -INR 124 crore (excluding early settlement), impacted by festive demand and higher transaction volumes.

Outlook and guidance

• Margins expected to remain sustainable, with operating leverage and asset-light strategy supporting future profitability.

• Depreciation and CapEx to remain range-bound and decline as a percentage of revenue.

• Management expects normalization of working capital in the coming quarter following seasonal festive demand.

• Continued focus on expanding value-added services and international presence.

• Prudent cost management to sustain profitability.