What Pine Labs does
Pine Labs has grown into a leading merchant trading platform offering digital payment, issuance and trade finance solutions. The company operates in India, Southeast Asia and the Middle East, serving more than 9.8 million 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 key player in the Indian fintech and digital payments landscape.
Financial affairs and turnaround
Pine Labs reported revenues 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 fell sharply to Rs 109 crore from Rs 342 crore a year earlier. The company also delivered positive EBITDA margins of 9.6% and adjusted EBITDA margins of 15.7%, reflecting improved efficiency and scale.
Analysts see: subscribe to long-term investments
In its IPO note, SBI Securities recommended a ‘Subscribe to Long-Term Investments’ rating, citing Pine Labs’ strong growth trajectory, improving profitability and a robust addressable market. The broker noted that the fintech player is well positioned to capitalize on the Rs 276 trillion digital payments opportunity expected in FY29, backed by deep partnerships with leading consumer brands and banks such as Croma, HDFC Bank, LG Electronics and Apollo Pharmacy.
At the higher price range, Pine Labs is valued at an EV/EBITDA multiple of 82.8x and EV/Revenue 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 cloud infrastructure and fund growth initiatives.
“Pine Labs’ business has witnessed a strong turnaround with robust EBITDA and Adj. EBITDA growth during FY23-FY25. Thanks to its scalable business model and diversified ecosystem, we believe the company is well placed to achieve profitable growth,” SBI Securities said.
Outlook
With a GMP of 5%, modest gains on the listing are expected, although analysts say the long-term story lies in Pine Labs’ ability to maintain its operational influence and international expansion. The issue closes on Monday, November 11 and the listing is scheduled for November 14.
(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of the Economic Times)
#Pine #Labs #IPO #opens #today #check #GMP #subscription #rating #details