Pine Labs has reported its first full financial year in profit, posting a profit after tax of ₹113 crore for FY26, compared with a loss of ₹145 crore in the prior year. The swing of ₹258 crore in a single year marks a structural inflection for the Gurugram-based payments and commerce infrastructure company, which processes transactions for merchants, brands and financial institutions across 22 countries.
Full-year revenue from operations grew 19% year on year to ₹2,711 crore. Adjusted EBITDA expanded 57% to ₹559 crore, with margins widening from 16% to 21% over the same period. Operating cash flow reached ₹395 crore for the full year, an eightfold increase year on year. The fourth quarter alone delivered ₹59 crore in PAT and ₹676 crore in operating cash flow, both described by the company as quarterly records.
Beneath the revenue line, Pine Labs processed $194billion in gross transaction value (GTV) during FY26, up 50% year on year. UPI volumes accelerated at a faster 68%, and the platform handled more than 20 million daily transactions.
Chief executive Amrish Rau noted the gap between GTV growth and revenue growth in his framing of the results. “When GTV grows at 50% while revenue grows at 19%, it reflects the platform depth we have built, and it leaves significant monetisation headroom ahead of us,” he said.
Platform economics and the AI layer
The margin expansion story rests partly on what Pine Labs calls a Commerce Operating System: a stack linking 2 million terminals, more than 450 brands and 177 financial institutions. The company reports that more than ₹50 of every incremental ₹100 of contribution margin now flows through to adjusted EBITDA, and the share of terminals actively generating revenue from its higher-margin affordability and payments infrastructure layers rose from 22% to 30% over the year.
Pine Labs also disclosed that approximately 89% of its code changes are now contributed by AI agents, a figure the company frames as a structural reorganisation rather than a productivity tool. Its SignalIQ product, described as already live with banks and fintechs, converts UPI transaction data into credit underwriting signals for lenders whose legacy systems cannot natively read that data flow. The company has also partnered with OpenAI to develop agentic commerce solutions, with a suite already available through ChatGPT.
The agentic commerce thesis is that AI-driven purchasing compresses individual transaction values while multiplying transaction counts, expanding the addressable surface for a payments infrastructure layer. Whether that dynamic benefits a merchant-acquirer and terminal operator at Pine Labs’ scale is a question the market will test over the next few product cycles.
International expansion
International revenue crossed ₹400 crore in FY26, representing roughly 15% of total revenue, up from 9% three years ago, and has grown at a 44% compound annual rate over that period. In Southeast Asia, Pine Labs partnered with GCash, the Philippines-based finance super app, covering acquiring, affordability and loyalty. In the Middle East, the company secured multi-year contracts with Wio Bank in the UAE and extended its relationship with Emirates NBD into Saudi Arabia and Egypt. In the United States, it launched prepaid programmes with unnamed consumer brands.
The international push places Pine Labs in competition with global payment infrastructure providers already well established in Southeast Asia and the Gulf, including regional acquiring networks and multinational processor subsidiaries. The regulatory environments across those corridors differ considerably: the UAE operates under CBUAE oversight, the Philippines under BSP, and US prepaid programmes sit under a patchwork of state money-transmitter licences alongside federal FinCEN requirements. Demonstrating consistent unit economics across that regulatory and currency mix will be a key test for the international segment’s contribution margin as it scales toward a larger share of group revenue.
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