Pine Labs Reports ₹42 Crores Q3 FY 26 Profit on Strong Festive Demand

Fintech firm Pine Labs on 28 January 2026 reported a consolidated net profit of ₹42 crores for the December quarter. It reversed a loss of ₹57 crores in the same quarter last year, helped by a strong festive season and improvement in margins from its higher-yielding businesses.

Higher Merchant Activity During Festivity

The Gurugram-based company said the third quarter is seasonally strong because of higher merchant activity during the October festivals. The improvement in earnings also came on the back of cost control and lower non-cash expenses, it said in a statement to stock exchanges.

Shares of Pine Labs Ltd. were trading 0.083% higher at ₹228.90 after the results. The stock, however, is down about 3% so far in 2026.

Sequential Improvement in Earnings

The December quarter profit also marked a sharp sequential improvement. Pine Labs had reported a consolidated net profit of ₹6 crores in the September quarter of the current financial year.

The company said its margins expanded during the quarter as higher-margin products gained traction and employee-related costs remained stable. Margin improved to 23% from 18% a year earlier, according to the filing.

Lower depreciation and amortisation expenses also supported profitability, Pine Labs said. The company added that stability in its Employee Stock Option Plan (ESOP) expenses helped keep overall costs in check.

Pine Labs also incurred a one-time cost of ₹10 crores during the quarter due to the implementation of new labour codes. Excluding this charge, net profit would have been ₹52 crores for the quarter, the company said.

Revenue Growth Driven by Merchant Additions

Consolidated operating revenue rose 24% year-on-year to ₹744 crores in the December quarter, compared with ₹602 crores in the same period last year.

Note that Pine Labs has been focusing on expanding its merchant base beyond traditional retail. It seeks to include global manufacturers, quick commerce platforms, and technology-led businesses.

New Products and Partnerships

Pine Labs launched multiple payment products aimed at expanding use cases and increasing engagement across its platform during the quarter.

These included agentic bill payments, mAadhaar-based payment solutions, Apple Pay integration, and UPI Autopay offerings. The company said these launches helped drive transaction growth and supported higher-margin revenue streams.

The fintech firm also launched a co-branded prepaid programme in partnership with expense management platforms such as Zoho and Pazy. The programme is aimed at corporate customers looking to manage employee and business expenses more efficiently.

Focus on Scale and Margins

Pine Labs was listed on the Indian stock exchanges last year. It joins a growing list of fintech companies getting listed on exchanges. Since listing, the company has focused on improving profitability. On the other hand, it continues to invest in product development and customer acquisition.

What Does It Mean for Investors?

For investors, Pine Labs’ December quarter numbers show profitability after listing. The expansion in margins and record transaction volumes may offer comfort, showing that scale is starting to translate into earnings.

At the same time, the modest stock reaction and year-to-date decline suggest markets may remain selective on fintech plays.

Sources:

Moneycontrol

CNBC