Pine Labs' Q3 results: Net profit at ₹42.4 crore, revenue up 23.7%

Pine Labs posts strong Q3FY26 profit growth despite one-time hit from new labour codes, driven by higher revenues and better monetisation of digital checkout points

The New Labour Code caused a minor dent in Pine Labs’ bottom line, with the payments technology firm reporting a consolidated net profit of ₹42.4 crore in the third quarter of the financial year 2025-26 (Q3FY26).

 

The new code led to a one-time increase in employee benefit provisioning of ₹12.22 crore for the group and ₹10.82 crore for the company.

 

At a company level, without the exceptional change, the firm would have posted a profit of ₹52 crore in Q3FY26. In comparison, the company posted a net loss of ₹56.67 crore in Q3FY25. Sequentially, net profit grew seven-fold from ₹5.97 crore in Q2FY26.

 

 

This follows the notification of the new labour codes in November 2025, which are expected to trigger a restructuring of employee benefits, prompting employers to make provisions accordingly.

 

Pine Labs’ revenue from operations grew 23.7 per cent to ₹744.27 crore in Q3FY26 from ₹601.64 crore in Q3FY25. Sequentially, it grew 14.52 per cent from ₹649.90 crore in Q2FY26.

 

The company’s expenses grew 13.21 per cent to ₹704.91 crore in Q3FY26 from ₹622.63 crore in Q3FY25. Sequentially, it marginally grew by 6.53 per cent from ₹661.68 crore in Q2FY26.

 

For Pine Labs, employee benefits emerged as the largest form of expenses, contributing over one-third, or 37.35 per cent, of total expenses. In Q3FY25, this was 40.4 per cent.

 

Twenty-seven per cent of revenue was linked to subscriptions from digital checkout points in Q3FY26.

 

The payments firm has 1.93 million digital checkout points as of Q3FY26, growing 11 per cent from 1.73 million points in Q3FY25.

 

Twenty-eight per cent of this base of digital checkout points generated value-added services and affordability features and transactional volumes, signalling monetisation of existing infrastructure deployed by the firm.

 

Pine Labs has 1.05 million merchants as of Q3FY26, compared to 0.92 million in Q3FY25.

 

The company’s revenue from international markets has grown from ₹194 crore in FY24 to ₹338 crore in FY25.

 

It said that nearly 20 per cent of the new product codes was written by artificial intelligence (AI).