What Pine Labs does
Pine Labs has evolved into a leading merchant commerce platform offering digital payment, issuing, and merchant financing solutions. The company operates across India, Southeast Asia, and the Middle East, serving over 9.8 lakh merchants and 177 financial institutions as of June 2025. Its cloud-based, API-first architecture enables seamless integration for merchants and financial partners, positioning it as a major player in India’s fintech and digital payments landscape.
Financials and turnaround
Pine Labs reported a revenue of Rs 2,274 crore in FY25, up 28% year-on-year, while adjusted EBITDA stood at Rs 357 crore versus Rs 158 crore in FY24, a strong operational turnaround. Adjusted PAT losses narrowed sharply to Rs 109 crore from Rs 342 crore a year earlier. The company has also achieved positive EBITDA margins of 9.6% and adjusted EBITDA margins of 15.7%, reflecting improving efficiency and scale.
Analysts view: Subscribe for long-term investment
In its IPO note, SBI Securities recommended a ‘Subscribe for long-term investment’ rating, citing Pine Labs strong growth trajectory, improving profitability, and a robust addressable market. The brokerage noted that the fintech player is well positioned to capitalise on the Rs 276 trillion digital payment opportunity expected by FY29, supported by deep partnerships with leading consumer brands and banks such as Croma, HDFC Bank, LG Electronics, and Apollo Pharmacy.
At the upper price band, Pine Labs is valued at an EV/EBITDA multiple of 82.8x and EV/Sales of 8x on post-issue capital. The company plans to use Rs 532 crore from the IPO proceeds to repay debt and another Rs 790 crore to strengthen technology, expand its cloud infrastructure, and fund growth initiatives.
“Pine Labs’ operations have witnessed a strong turnaround with robust growth in EBITDA and adj. EBITDA during FY23–FY25. On the back of its scalable business model and diversified ecosystem, we believe the company is well placed to deliver profitable growth,” SBI Securities said.
Outlook
With a 5% GMP, modest listing gains are expected, though analysts say the long-term story lies in Pine Labs ability to sustain its operating leverage and international expansion. The issue closes on Monday, November 11, and listing is slated for November 14.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)