For much of its two-decade journey, Pine Labs was viewed, and often valued, as a premium point-of-sale hardware and payments company.

But in the run-up to its IPO, the company worked hard to reposition itself as a full-stack fintech platform, spanning issuing, acquiring, crossborder payments, affordability, loyalty and merchant software. This is a key transformative phase for Pine Labs, one that positions the company for the future.

It became the first of its kind in the country to secure all three key payments licenses from RBI in November last year, in time for the IPO and now with its Q3 FY26 results, Pine Labs is demonstrating how it is transitioning to its new avatar.

The overall operating revenue grew 23% YoY to INR 744 Cr in Q3, and Pine Labs also reported a net profit of INR INR 42 Cr, compared to a loss of INR 56.7 Cr this time last year.

The company had in the past, pitched a narrative of Pine Labs 2.0, where it persisted that its a full stack fintech player with diversified revenue streams.

It appears that the company is now acting on it through its revenue mix.

In Q3, Pine Labs’ value-added services (VAS) segment expanded at a much faster pace, growing 41% during the quarter. VAS-linked gross transaction value (GTV), including affordability, credit-linked services and other non-core payment products, crossed INR 76,000 Cr during the quarter, compared to around INR 54,000 Cr in Q3 last year.

The faster pace of growth is where incremental monetisation is increasingly coming from, even as the company continues to process large volumes of core payment transactions via its POS business, which still accounts for roughly two-thirds of overall revenue.

Notably, revenue from its digital infrastructure and transaction platform, which includes POS subscriptions, terminal rentals and in-store payment processing, stood at around INR 496 Cr in Q3, accounting for roughly 67% of total operating revenue.

The company ended the quarter with 19.3 Lakh active digital checkout points, up 11% YoY.

However, monetisation within the POS base remains uneven. Only about 28% of active terminals generated any value-added services or affordability volumes during the quarter, up from around 21% a year earlier.

This means more than two-thirds of the installed base continues to be monetised largely via........

© Inc42