Pine Labs
Pine Labs
Financial ServicesKey Fundamentals
SmallcapFintechFinancial ServicesTapetide Score
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Key Insights
Strengths
3- Company has reduced debt.
- Company is almost debt free.
- Company has delivered good profit growth of 32.3% CAGR over last 5 years
Weaknesses
3- Stock is trading at 3.94 times its book value
- Company has a low return on equity of -2.94% over last 3 years.
- Company's cost of borrowing seems high
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 5d agoPine Labs Ltd trades at a market cap of ₹19,619 Cr with a PE of 149.4x and a price-to-book of 3.22x. The company has shown strong revenue growth at a 19% CAGR over 3 years and 32% over 5 years, while recently turning profitable with TTM profit growth of 262%, though its 3-year average ROE remains negative at -3%.
- Strong revenue momentum with TTM sales growth of 20% and a 5-year compounded sales CAGR of 32%, indicating consistent top-line expansion in the digital payments space
- Profit growth has inflected sharply with TTM compounded profit growth of 262%, signalling a potential turning point toward sustained profitability
- Company is almost debt-free, significantly reducing financial risk and interest burden on the balance sheet
- Company has actively reduced debt, improving its capital structure and freeing up cash flows for growth investments
- 5-year compounded profit CAGR of 32.3% demonstrates that the underlying business model has been scaling toward profitability over a multi-year horizon
- Last year ROE turned positive at 2%, reversing the negative trend seen over 3-year (-3%) and 5-year (-4%) periods, suggesting improving capital efficiency
- Operating in the fast-growing Indian digital payments and merchant commerce ecosystem, supported by a large market cap of ₹19,619 Cr reflecting institutional confidence in the platform
- PE ratio of 149.4x is extremely elevated, pricing in significant future growth and leaving little margin of safety if execution falters
- 3-year average ROE is negative at -3% and 5-year average ROE is -4%, indicating the company has historically destroyed shareholder value rather than created it
- Zero dividend yield (0%) means shareholders are entirely dependent on capital appreciation with no income cushion
- Price-to-book ratio of 3.22x is elevated for a company that has only recently turned profitable, suggesting the stock prices in a best-case scenario
- Despite being nearly debt-free, the company's cost of borrowing appears high, which could weigh on margins if leverage is used for future expansion
- No 52-week high/low data and no stock CAGR history available, limiting investors' ability to assess historical price performance and volatility
- The recent profitability turnaround (last year ROE of just 2%) is still nascent and unproven over multiple cycles, making the 149.4x PE a bet on forward earnings that may not materialize at scale
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 2h ago- Stock down 31.8% YTD Sep 2
Pine Labs shares have declined 31.8% in 2026 so far, significantly underperforming the Nifty 50 which is down 7.5%.
- FY25 losses and negative cashflows Sep 2
Company reported losses of ₹1,454.87 million in FY25 with total expenses at 104.29% of income and negative operating cash flows of ₹2,811.93 million in Q1FY26.
- Q1 profit down 67% QoQ Sep 2
Net profit declined 67% sequentially from ₹59.36 crore in Q4FY26 to ₹19.57 crore in Q1FY27, partly due to a higher effective tax rate of 48%.
- Auditor adverse opinions FY23-25 Sep 2
Auditor reports contain adverse opinions for Fiscal Years 2023, 2024 and 2025, raising governance and accounting concerns.
- Alpha Wave ₹550 cr exit Sep 2
Alpha Wave completed its full exit from Pine Labs via ₹550 crore block deal at ₹155.10 per share, a 4% discount to previous close.
- Revenue concentration risk Sep 2
Top 10 customers account for approximately 29-31% of revenue, creating meaningful concentration risk.
- Q1 profit quadruples YoY Sep 2
Consolidated net profit nearly quadrupled to ₹19.6 crore in Q1FY27 from ₹4.79 crore YoY, with revenue up 19.6% to ₹737 crore and EBITDA more than doubling to ₹95 crore.
- Investec initiates with ₹200 target Aug 27
Investec initiated coverage with a Buy rating and ₹200 price target, implying ~20% upside, citing 20% revenue CAGR through FY29 and PAT margin improving to 14% by FY29.
- Dominant enterprise market share Aug 27
Pine Labs holds 60%+ market share in enterprise merchants, ~90% in gift-card processing, and handles 85% of offline BNPL white-goods transactions across 20+ lakh POS terminals.
- New COO strengthens leadership Sep 2
Jayaram Karthik appointed COO with 25 years of experience from American Express, Amazon, and Razorpay to lead operations across Pine Labs' 20-country footprint.
- EBITDA margin expansion trajectory Sep 2
EBITDA margin expanded to 12.9% in Q1FY27 from 7.2% YoY, continuing a trend from near-zero in FY23 to 13% in FY26, with management guiding higher margins ahead.
- Strong institutional buyers emerge Sep 2
ICICI Prudential Life acquired 0.89% stake for ₹160 crore, joined by Goldman Sachs, Morgan Stanley, Norges Bank and others absorbing the Alpha Wave block deal.
- AGM scheduled September 16 Aug 19
Pine Labs will hold its 28th AGM on September 16, 2026 via video conference, with FY26 annual report to be sent electronically.
- UPI dominates 70% of transactions Sep 2
Over 70% of transactions on Pine Labs' platform are routed through UPI, with gross transaction value of ₹4.22 lakh crore in Q1FY27 and digital checkout base growing 18% to 21.7 lakh.
TL;DR: Pine Labs is showing strong YoY improvement with Q1FY27 profit quadrupling and EBITDA margins expanding from near-zero in FY23 to ~13%, supported by dominant market positions in enterprise payments and BNPL. Key risks include a 31.8% YTD stock decline, adverse auditor opinions for three consecutive years, sequential profit decline due to elevated tax rates, and early-investor exits. The operational trajectory is improving with Investec projecting 20% revenue CAGR through FY29, but the stock needs to demonstrate sustained profitability and resolve audit concerns to regain investor confidence.
Quarterly Results
| Particulars | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|
| Sales | 552 | 602 | 599 | 616 | 650 | 744 | 701 | 737 |
| Expenses | 519 | 525 | 542 | 571 | 575 | 612 | 594 | 642 |
| Operating Profit | 32 | 77 | 57 | 45 | 75 | 132 | 106 | 95 |
| OPM % | 6% | 13% | 9% | 7% | 12% | 18% | 15% | 13% |
| Other Income | 22 | -30 | 12 | 37 | 23 | 23 | 50 | 29 |
| Interest | 18 | 22 | 22 | 21 | 21 | 24 | 17 | 13 |
| Depreciation | 75 | 76 | 69 | 65 | 66 | 68 | 71 | 73 |
| PBT | -38 | -51 | -22 | -5 | 11 | 63 | 68 | 38 |
| Tax % | -16% | 11% | 30% | -199% | 47% | 32% | 13% | 48% |
| Net Profit | -32 | -57 | -29 | 5 | 6 | 42 | 59 | 20 |
| EPS in Rs | -0.38 | -0.67 | -0.34 | 0.11 | 0.13 | 0.37 | 0.52 | 0.17 |
Profit & Loss
| Particulars | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|
| Sales | 848 | 670 | 932 | 1,598 | 1,770 | 2,274 | 2,711 | 2,832 |
| Expenses | 760 | 560 | 820 | 1,592 | 1,794 | 2,056 | 2,352 | 2,423 |
| Operating Profit | 87 | 110 | 112 | 5 | -25 | 218 | 358 | 409 |
| OPM % | 10% | 16% | 12% | 0.3% | -1.4% | 10% | 13% | 14% |
| Other Income | 18 | 13 | 25 | 56 | 55 | 16 | 133 | 125 |
| Interest | 18 | 22 | 24 | 36 | 64 | 79 | 84 | 76 |
| Depreciation | 155 | 175 | 189 | 315 | 363 | 292 | 270 | 278 |
| PBT | -68 | -74 | -75 | -289 | -398 | -136 | 137 | 180 |
| Tax % | -30% | -25% | -70% | -8% | -14% | 7% | 18% | — |
| Net Profit | -47 | -56 | -23 | -265 | -342 | -145 | 113 | 127 |
| EPS in Rs | -3.95 | -4.34 | -1.67 | -18.99 | -4.07 | -1.73 | 0.98 | 1.19 |
| Div. Payout % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | — |
Balance Sheet
| Particulars | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|
| Equity Capital | 12 | 13 | 14 | 0.02 | 0.1 | 0.1 | 115 |
| Reserves | 1,035 | 1,178 | 1,900 | 3,664 | 3,466 | 3,431 | 5,781 |
| Borrowings | 176 | 191 | 236 | 514 | 730 | 1,046 | 441 |
| Other Liabilities | 2,225 | 3,185 | 4,111 | 5,141 | 5,422 | 6,222 | 6,952 |
| Total Liabilities | 3,448 | 4,567 | 6,260 | 9,318 | 9,618 | 10,698 | 13,288 |
| Fixed Assets | 1,017 | 980 | 1,019 | 2,103 | 1,920 | 1,825 | 1,856 |
| CWIP | 52 | 48 | 122 | 269 | 222 | 160 | 148 |
| Investments | 40 | 34 | 50 | 18 | 21 | 30 | 28 |
| Other Assets | 2,338 | 3,505 | 5,070 | 6,928 | 7,455 | 8,683 | 11,256 |
| Total Assets | 3,448 | 4,567 | 6,260 | 9,318 | 9,618 | 10,698 | 13,288 |
Cash Flow
| Particulars | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|
| Operating | 11 | 111 | -79 | -152 | -229 | 50 | 395 |
| Investing | 112 | -260 | -443 | -441 | -22 | -486 | -2,045 |
| Financing | 1,431 | 823 | 1,644 | 2 | -220 | -201 | 1,972 |
| Net Cash Flow | 1,554 | 674 | 1,122 | -591 | -471 | -637 | 322 |
| Free Cash Flow | -156 | -54 | -407 | -517 | -486 | -99 | 161 |
| CFO/OP | 86 | 114 | -25 | -1,258 | 872 | 5 | 112 |
Ratios
| Particulars | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|
| Debtor Days | 92 | 196 | 116 | 135 | 134 | 136 | 140 |
| Inventory Days | 5 | 23 | — | 134 | 65 | 38 | 32 |
| Days Payable | 144 | 1,345 | — | 1,233 | 908 | 693 | 382 |
| Cash Conversion Cycle | -47 | -1,126 | 116 | -964 | -708 | -519 | -210 |
| Working Capital Days | -722 | -1,252 | -1,255 | -813 | -807 | -762 | -609 |
| ROCE % | — | -4% | -3% | -7% | -8% | 0% | 4% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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37 extracted metrics + investor summaries across FY20–FY27.
Documents
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Company Information
Incorporated in 1998, Pine Labs is a leading Indian merchant commerce platform that provides point-of-sale (POS) solutions, payment processing, and merchant financing services.[1]
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