The company is responding to an article published by entrackr.com on June 15, 2026 titled "Inside Pine Labs' profit story: The gift card income stream set to take a hit"
The media reports are characterized as speculative, incorrect and misleading in nature
The company operates predominantly through co-branded program structures across its regulated products
Under these structures, any breakage income belongs to the partner brand and not to Pine Labs
Breakage has never formed a material part of Pine Labs' revenue or profit pool
Unutilized balances are retained by the brand partner, which typically reinvests those funds into:
Customer acquisition
Customer engagement
Loyalty initiatives
Driving repeat usage
This operating model has been in place for more than a decade across Pine Labs' regulated co-branded programs in India
Even if RBI issues additional guidance or regulations regarding breakage income treatment, the company does not foresee any meaningful impact on its:
Business
Revenue
Profitability
The clarification is made pursuant to Regulation 30 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015
