Fintech major Pine Labs posted record quarterly revenue and swung to profit in the third quarter of FY26, as the company continued to move away from hardware-heavy deals to more software-led, higher-margin contracts. Revenue from operations rose 24% year-on-year to 744 crore, while it posted a profit after tax of 42 crore in the third quarter of FY26.
It had posted a loss of 57 crore in the year-ago period. Revenue from its core business — digital infrastructure and transaction processing (DITP) — which is about 60% of its total revenue, grew 16% year-on-year to496 crore, while revenue from its issuing and acquiring platform that helps banks, brands, and fintechs deliver their credit offerings jumped 42% to 248 crore.
Strategic Software Shift
The company’s management noted earlier that the DITP segment, historically buoyed by point-of-sale (POS) devices bundled with hardware, is undergoing a structural reset.
Pine Labs is increasingly shifting merchants towards software-only or software-led contracts, where customers bear the upfront hardware cost while the company monetises through subscriptions and platform fees.
Brokerage Emkay Research said in a client note earlier this month that while these software-led contracts are margin-accretive, they generate lower absolute revenue per deployment, pulling down average revenue per device to336 from 380 in FY25.
Improved Margin Profile
However, a higher mix of software-led revenue helped the company increase its Ebitda margin to 23% in the third quarter from 19% in Q2.
“Lower depreciation, driven by a higher mix of software-led and refurbished DCP deployments, along with stable ESOP expenses in Q3, further accelerated profitability,” the company noted in its shareholder letter.
The profit after tax also includes an exceptional charge on account of the implementation of the new labour codes. Excluding this, PAT would have been around52 crore in the third quarter of FY26.