Pine Labs has reported a strong start to FY27, with steady growth in revenue and a sharp jump in profit. The fintech company benefited from higher digital payment volumes, a growing merchant base, and increased use of its payment and financial technology services.
During the first quarter of FY27, the company posted a 20% year-on-year rise in revenue, while its net profit increased more than four times compared to the same period last year. Pine Labs also continued expanding its AI-powered products and international business, while keeping its annual growth guidance unchanged.
Revenue and Profit See Strong Growth in Q1 FY27
For the quarter ended June 2026, Pine Labs reported consolidated revenue from operations of ₹736.92 crore, up 20% from ₹615.91 crore in Q1 FY26.
The company’s profit after tax (PAT) jumped to ₹19.57 crore from ₹4.79 crore a year ago. Profit before tax also improved significantly, reaching ₹37.73 crore after reporting a loss of ₹4.84 crore in the same quarter last year.
Total income stood at ₹765.87 crore, including other income of ₹28.95 crore. At the same time, total expenses increased by 10.6% to ₹728.14 crore. Employee salaries and benefits remained the biggest expense at ₹267.52 crore.
Pine Labs reported an adjusted EBITDA of ₹126 crore with a margin of 17.1%. Although the margin was lower than last year’s 20%, the company maintained a healthy contribution margin of 72.3%.
The company’s effective tax rate was 48% during the quarter because losses from some international businesses could not be adjusted against profits earned in India. However, the management expects the tax rate to come down to around 28% to 30% by the end of FY27.
On a standalone basis, Pine Labs recorded revenue from operations of ₹535 crore and a profit after tax of ₹43.66 crore.
Higher Transactions and AI Help Business Growth
Pine Labs processed nearly $45 billion in gross transaction value (GTV) during the quarter, showing strong growth across its payment platform.
The company’s flow, affordability, and transaction processing business handled ₹91,000 crore worth of transactions, up 54% from a year ago. UPI transaction value grew by more than 80%, while Dynamic Currency Conversion (DCC) business also recorded growth of over 40%.
Overall, Pine Labs processed 201 crore transactions during the quarter. Transactions through its fintech infrastructure business increased 37% year-on-year to 34 crore.
The company expanded its digital checkout network to 21.7 lakh devices, an 18% increase from last year. More than 70% of all transactions on these devices now happen through UPI.
Its merchant network also continued to grow, reaching 11.5 lakh merchants. During the quarter, Pine Labs added more than 40 new online merchants from sectors such as quick commerce, direct-to-consumer (D2C) brands, travel, and enterprise businesses.
The rollout of payment terminals at oil marketing company outlets also continued as planned, with nearly one lakh terminals deployed across Q4 FY26 and Q1 FY27.
Artificial intelligence played a bigger role in the company’s operations during the quarter. Pine Labs said its AI-powered telesales system reduced manual sales efforts by nearly 60%. AI also helped in 89% of the company’s software code changes, covering around 1.5 million lines of code. To support these improvements, spending on cloud, data, and technology infrastructure increased 33% to ₹64 crore.
Shopflo Deal, Global Expansion and FY27 Outlook
During the quarter, Pine Labs completed the acquisition of Shopflo Technologies for ₹88 crore. The company said Shopflo has already helped generate more than ₹400 crore in transaction volumes from D2C brands and small businesses since becoming part of Pine Labs in May 2026.
The company also launched new products, including India’s first agentic payment protocol on UPI. This allows AI agents to make payments automatically within limits set by users. Pine Labs also introduced Credit Line on UPI, which lets users access bank-issued credit directly through their UPI IDs.
Pine Labs continued to grow its international business as well. Revenue from overseas operations increased 21% year-on-year to ₹114 crore and now contributes around 16% of the company’s total revenue. During the quarter, the company expanded its payment solutions in the Philippines, Singapore, and the UAE. It also strengthened partnerships with banks and airlines, including British Airways and TAROM.
Looking ahead, Pine Labs expects its EBITDA margins to improve as sales productivity increases. The company has maintained its FY27 revenue growth guidance of 21% to 23.5%.
Pine Labs is also preparing for its much-awaited IPO in India after shifting its legal headquarters from Singapore to India. Reports suggest the company is planning to raise between ₹5,000 crore and ₹6,000 crore through the public issue at a valuation of around $4-5 billion.
After the Q1 FY27 results were announced, Pine Labs shares gained nearly 5% during intraday trading before closing 2.69% higher, showing positive investor confidence in the company’s performance and future growth plans.