Pine Labs Reports Profit Ahead of IPO, Reduces Issue Size

Tech

1st November 2025, 12:19 PM

Pine Labs Reports Profit Ahead of IPO, Reduces Issue Size

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Short Description :

Pine Labs has turned profitable in the first quarter of fiscal year 2026 (Q1 FY26), reporting a net profit of INR 4.8 Cr against a loss in the previous year. This profitability was aided by a tax credit of INR 9.6 Cr, as the company posted a pre-tax loss. Revenue from operations increased by 18% to INR 615.9 Cr. The fintech firm has also filed its Red Herring Prospectus for an Initial Public Offering (IPO) set to open on November 7, reducing the total issue size from its earlier draft. In the full fiscal year 2025, Pine Labs narrowed its net loss significantly and saw its operating revenue grow.

Detailed Coverage :

Pine Labs, a leading fintech firm, reported a net profit of INR 4.8 Crore in Q1 FY26, a turnaround from a loss of INR 27.9 Crore in Q1 FY25. This profit was aided by a tax credit of INR 9.6 Crore; otherwise, the company would have registered a pre-tax loss. Revenue from operations grew 18% to INR 615.9 Crore.

The company filed its Red Herring Prospectus for an Initial Public Offering (IPO) opening November 7, reducing the issue size. Pine Labs also narrowed its net loss by 57% to INR 145.4 Crore in FY25, with operating revenue up 28%.

Pine Labs offers digital payment solutions globally. Its expenses rose 17% in Q1 FY26, with higher procurement and employee costs.

Impact This news is significant for investors as Pine Labs approaches its IPO. The move to profitability, despite tax credit assistance, is a positive signal for operational health. The revised IPO size may affect investor interest. The IPO will bring a new fintech stock to the Indian market. Rating: 7/10

Difficult Terms: Fintech: Technology used for financial services. Fiscal Year (FY): 12-month accounting period. FY26 runs from April 1, 2025, to March 31, 2026. Net Profit: Profit after all expenses and taxes. Loss Before Tax: Loss incurred before deducting income taxes. Tax Credit: A reduction in taxes owed. Revenue from Operations: Income from core business activities. IPO: First public sale of a private company's shares. RHP: Preliminary IPO document filed with regulators. OFS: Existing shareholders selling their shares.