ABOUT THE COMPANY
PINE LABS LIMITED is a leading fintech and merchant commerce platform specializing in digital payment platforms merchant financing, and payment infrastructure for merchants. Its main source of revenue is derived from the subscription fees received from the merchant’s other sources, including interest from the short-term working capital loan to merchants through partnerships with financial institutions. It serves top consumer brands including Amazon Pay, LG Electronics, Flipkart Internet Private Limited and Redington. The company got listed on the stock market on 14 November 2025, raising 3890 Crores through the IPO. The fresh issue of 2,080 Crores will be utilized for:
a) Repayment of Borrowings
b) Investment in Subsidiaries
c) Investment in IT Assets & Cloud Infrastructure
d) General Corporate Purposes
e) Unidentified Acquisitions
Quick peer context:
| Company Name | Market Capitalization | Return On Capital Employed | Stock P/E Ratio |
| Pine Labs | ₹ 27758.37Crores | -0.49 % | |
| One 97 | ₹ 81987.78 Crores | -10.14 % | 755.51 |
| PB Fintech. | ₹ 85511.49 Crores | 5.90 % | 185.24 |
PB Fintech. and One 97 has strong presence in the digital payment space with strong investor’s backing whereas Pine Labs has aa modest valuation after a robust IPO which shows it has room for more growth.
One 97 and Pine Labs ROCE are negative showing their inefficiency in generating sufficient returns on the resources employed while PB Fintech. has modest ROCE.
Analysis of the Financial Statements
Revenue Growth Trend
The sales of the company have grown multiplied by 2.68 times, but the expenses had also multiplied by 2.69 times, which shows the extra revenue generated by the company has been consumed by the operational expenses and when fixed costs are considered the company has reported a loss of Rs 145 crores for the FY 2024-25. The high operational cost is a problem for the company as no resources would be left for future investments, and external borrowing would be the only source for fueling future growth. The management of Pine Labs should focus on reducing the cost and maximizing their profitability.
| March 2020 | March 2021 | March 2022 | March 2023 | March 2024 | March 2025 |
| 848 CRORES | 670 CRORES | 932 CRORES | 1,281 CRORES | 1,770 CRORES | 2,274 CRORES |
Profitability & Margin Analysis
Operating Profit Margin of the company has been positive during the FY24-25. The operational cost of the company is Rs 2,056 Crores in FY24-25 and major portion of this expense is of the employee cost which cannot be shrinked in the future to maximize the profits, management must0020find a way out to this for better growth in the future.
| March 2020 | March 2021 | March 2022 | March 2023 | March 2024 | March 2025 |
| 10% | 16% | 12% | 12% | -1% | 10% |
Balance Sheet Strength
Total Assets of the company have tripled in size being majority of this increase is in the cash and cash equivalents and other assets, which raises the question why the company’s funds are standing in cash and cash equivalent rather than being used for paying of the external debts or the management is thinking of utilizing the resources for any future opportunities.
| March 2020 | March 2021 | March 2022 | March 2023 | March 2024 | March 2025 |
| 3,448 CRORES | 4,567 CRORES | 6,260 CRORES | 7,403 CRORES | 9,618 CRORES | 10,698 CRORES |
Debt Profile
Company’s borrowing has gone 5.94 times in the past 5 years being Rs 1,046 crores as of March 2025 in this Rs 782 crores are short term borrowings to be paid of in one year. Reserves and surplus for the company tripled in the past 5 years.
Reserves and Surplus:
| March 2020 | March 2021 | March 2022 | March 2023 | March 2024 | March 2025 |
| 1,035 CRORES | 1,178 CRORES | 1,900 CRORES | 2,170 CRORES | 3,466 CRORES | 3,431 CRORES |
Cash Flow Health
The Cash from Operating Activity has been fluctuating throughout the years. Company made Rs 150 crores investment in the fixed assets in FY24-25. The cash conversion cycle of the company is -519 days which is extremely rare and highly favorable. It means the company is getting cash long before it pays its suppliers. This is a powerful signal of the strength of its business model and working-capital efficiency.
Comparative Data with Key Competitors (One97 (Paytm), PB Fintech)
| Parameter | Pine Labs | One97 (Paytm) | PB Fintech |
| Sales Growth (5-Yr CAGR) | 22% | 16% | 45% |
| Operating Profit Margin | 10% (Stable) | -1% (Compressed) | 6% (Stable) |
| Debt-to-Equity | 0.29 (Low) | 0 (Low) | 0.05 (Low) |
Disclaimer: The article is for informational purposes only and not investment advice.