Pine Labs reported strong Q2 FY2027 growth with a 24% year-on-year revenue increase and 27% growth in adjusted EBITDA. The company is doubling down on its existing merchant base with a plan to deploy 10 lakh soundboxes to capture higher transaction share. While H1 capex rose to Rs 240 crore due to supply chain procurement, management raised its full-year growth outlook, signaling confidence in sustained momentum across both Indian and international payment segments.
Pine Labs Q2 FY2027: Revenue Up 24%, EBITDA Grows 27%
Pine Labs has reported a 24% year-on-year revenue increase and a 27% rise in adjusted EBITDA for Q2 FY2027.
Reader Takeaway: Strong transaction volumes and merchant retention drive growth, despite short-term margin pressure from new sales team hiring.
What just happened
Pine Labs posted consistent growth across its payment ecosystem. UPI transactions now account for 75-77% of POS activity. The company is launching a strategic initiative to deploy 10 lakh soundboxes to its existing merchant network to maximize wallet share. Management reported that transaction volumes surged 50% year-on-year, bolstered by strong performance in both offline and enterprise segments.
Why this matters
The deployment of soundboxes into an established merchant base suggests a shift toward high-margin recurring income without the risk of entering lower-tier markets. With 100% retention in the enterprise segment and the inclusion of major brands like Tanishq, the company is solidifying its market position. The upward revision in full-year revenue guidance—now expected to exceed the previous 23-23.5% target—reflects management's optimism regarding operational efficiency in the second half of the year.
The backstory
The company invested Rs 240 crore in capex during H1, primarily to secure chip supply through advance payments and manage procurement overflow from Q4. International operations are scaling rapidly, with 1 lakh daily transactions in the UAE and substantial POS deployments in Malaysia and the Philippines.
Risks to watch
EBITDA margins have tracked slightly below the previous year's levels, which management attributes to the nine-month gestation period required for new sales hires to reach full productivity. Investors should also monitor working capital cycles, as cash flows remain sensitive to festive season patterns.
What to track next
Watch for the rollout of the employee tax benefit card solution scheduled for late November or early December. Additionally, monitor the H2 margin recovery, as management expects sales team productivity to normalize and drive higher EBITDA performance.