• Event Type: Q2 FY2027 earnings call and post-results investor interaction conducted on October 29, 2026.
  • Date and Time: The call was held on October 29, 2026 (specific time not mentioned in the disclosure).
  • Purpose: Discussion of quarterly results (Q2 FY2027) and strategic business updates across all operating segments.
  • Management Participants: Mr. Amrish Rau (Chief Executive Officer) and Mr. Sameer Kamath (Group Chief Financial Officer).
  • Availability of Materials: The transcript of the conference call is available on the company's investor relations website at www.pinelabs.com/investorrelations/financial-results?tab=quarterly-results.
  • UPSI Statement: The disclosure does not contain any specific statement regarding unpublished price sensitive information (UPSI).

Financial Highlights and Business Updates

Financial Performance:

  • Revenue growth of 24% year-on-year in Q2 FY2027
  • Adjusted EBITDA growth of 27% year-on-year
  • Flow-based income grew by 25% year-on-year
  • UPI transaction volumes grew by nearly 50% year-on-year

Business Segment Performance:

Offline Business:

  • Enterprise accounts maintained 100% retention with strong net revenue retention
  • Added Tanishq as a new client with deployment across all stores
  • Deployed approximately 100,000 terminals in mid-market segment over trailing 12 months
  • Mid-market segment growing at 39-40%

Flow-Based Income:

  • Now includes data-related services, marketing services, and advertising revenues alongside traditional payment services
  • Multiple revenue streams contributing to growth beyond affordability services

Issuing Business:

  • Significant growth in prepaid cards and gift card distribution
  • Processing market share of 80-85%
  • New products include gaming-branded cards and Bharat Yatra NCMC cards
  • Distributing 25,000-30,000 Bharat Yatra cards monthly (approximately 1,000 daily)
  • Employee tax benefit card launch planned for end-November/early December

Online and Bill Payments:

  • Top four Q-commerce companies using Pine Labs payment gateway
  • Providing installment payment services for Q-commerce businesses
  • Participated in Flipkart's Big Billion Days as payment gateway
  • Signed one of the largest consumer billers in the country (to go live in Q3)

International Expansion:

  • Processing 100,000 transactions daily in UAE through partnerships with Emirates NBD and Wio Bank
  • Nearly 100,000 POS terminals deployed in Malaysian market
  • 50,000 POS machines in Philippines
  • Operations across 22 countries

Growth Initiatives and Outlook:

  • Planning to deploy 1 million additional soundboxes to capture UPI transactions
  • Continued investment in sales personnel, particularly in international markets
  • Scaling gaming distribution for gift cards
  • Expansion of data services and marketing/advertising revenues
  • Focus on affordability market expansion beyond electronics segment
  • Employee count: Approximately 5,200 with net addition of 675-680 people, primarily in sales

Capital Expenditure:

  • H1 capex at ₹240 crores, includes ₹35-40 crores slipped from Q4 FY2026 due to chip shortages
  • Additional ₹20-25 crores advance payments to secure inventory amid chip shortages

UPI Monetization Commentary:

  • 75-77% of POS transactions are now UPI-based, growing at 68% CAGR over two years
  • Expecting 70% growth in UPI transactions for next year
  • Eligible GTV for 2027: ₹20,000 crores, for 2028: ₹32,000-33,000 crores
  • Commercial negotiations expected with large merchants regarding MDR implementation

Margin Guidance:

  • Confirmed full-year EBITDA margin guidance of at least 21% (H1 tracking at 18%)
  • Expect H2 EBITDA to be significantly higher than H1
  • Contribution margins: DITP business 81-83%, issuance business 52-56%, overall 72-75%

Additional Notes Section

  • The document includes the complete transcript of the earnings call with analyst Q&A
  • No financial data was disclosed in the announcement beyond what was presented in the earnings call
  • The company highlighted strong execution across all business lines and market share gains in all operating segments
  • Management expressed confidence in exceeding initial revenue growth guidance of 23-23.5% for the full year