Pine Labs’ New Mantra: Forget PoS; Software Is The Future |
As it announced its first quarterly results after listing, fintech giant Pine Labs began its earnings call with a presentation on its new payments and currency management products. The demo involved a look at the UI and user experience for those using Pine Labs today.
This is unusual among Indian tech companies for certain. Most prefer to stick to the template and do a Q&A.
But this is also Pine Labs’ way of saying things are shifting. Such a presentation is after all the norm in the software business. This is the Pine Labs 2.0 that came to the fore ahead of the IPO.
Before we delve into this shift, let’s look at the numbers.
Net profit grew to INR 6 Cr in Q2 FY26 from INR 4.8 Cr in the previous quarter and a loss of INR 32 Cr in the year-ago period. Operating revenue grew 18% YoY and 6% QoQ to INR 649.9 Cr during the quarter, while other income of INR 23 Cr took total income to INR 672.9 Cr.
The digital infrastructure and transaction platform, which includes its core in-store and online payment solutions, posted a 12% YoY increase to INR 440 Cr. Meanwhile, revenue from the issuing and acquiring platform surged 32% YoY to INR 209.8 Cr.
The numbers make for a strong case that Pine Labs is transitioning from a PoS company to a global payments software maker for enterprises, banks and merchants of all sizes.
Here’s some context: Only 29% of Pine Labs’ revenue this quarter came from subscription and rental streams — the traditionally PoS-led side of the business. Meanwhile, a significant 71% came from SaaS and tech-based services, showing how quickly the company is hurtling toward a software and platform-led future.
“We are a fully diversified fintech platform operating across online and offline channels, using digital payments infrastructure… In terms of revenues, we continue to be extremely diversified between merchants, banks and financial institutions, and also enterprises, corporates and brands,” Pine Labs CEO Amrish Rau told analysts in the call.
And it’s a line that’s become oft repeated in the run up to the IPO. The company listed at a modest 9.5% premium, but if indeed software is the future, then there’s a lot more value waiting to be unlocked.
Moving On From Hardware
Rau has repeatedly said that the company is witnessing growth across multiple verticals, and that........