Pine Labs Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 806.19 Cr (+24.05% YoY) and PAT growth of +546.23% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 29, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 806.19 Cr (+24.05% YoY) |
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| PAT (Q2) | Rs. 38.57 Cr (+546.23% YoY) |
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| EBITDA margin | 19.23% (+45 bps YoY) |
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| EPS (Q2) | Rs. 0.33 (+450.00% YoY) |
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| Market cap | Rs. 18,938.84 Cr |
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| CMP | Rs. 164.21 |
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Quarter Snapshot
Q2 FY27 revenue grew 24.05% YoY to Rs.806.19 Cr — above the 21-23.5% guidance band and the fastest in five quarters — while PAT grew 546% YoY to Rs.38.57 Cr on flat employee costs. Adjusted EBITDA margin recovered to 19.23% from Q1's 17.09% miss, and Q2 operating cash flow of Rs.350.34 Cr doubled YoY. Open items are the contribution-margin recovery to 73-74%, the ETR glide from 37.15% toward the 28-29% guide, and the H1 flowthrough miss (26.68% vs Rs.50-57 per Rs.100 guided).
Key Investment Insights
Key Positives
- Revenue grew 24.05% YoY to Rs.806.19 Cr, the fastest in five quarters, above the 21-23.5% FY27 guidance band
- PAT grew 546% YoY (6.46x) to Rs.38.57 Cr; PBT up 449.91% YoY to Rs.61.37 Cr
- Adjusted EBITDA margin recovered to 19.23% from Q1's 17.09%, back inside the guided 19-20% trajectory
- Employee costs flat YoY at Rs.267.68 Cr, falling to 33.20% of revenue from 41.22%
- Q2 operating cash flow of Rs.350.34 Cr, roughly double Q2 FY26's Rs.152 Cr; H1 CFO covers PAT 3.29x
- Both segments accelerated: DITP +20.79% YoY, IAP +30.88% YoY; IAP contribution margin recovered QoQ from 52.40% to 54.92%
- Net cash of Rs.2,345 Cr at 30-Sep-26, up from Rs.2,123 Cr at 30-Jun-26; borrowings reduced to Rs.183.28 Cr from Rs.282.29 Cr
- Exceptional items nil this quarter; no fresh labour-code provision
Risk Factors
- Contribution margin compressed 372 bps YoY to 72.82% (76.54% year-ago); IAP contribution margin down ~684 bps YoY to 54.92%
- Effective tax rate of 37.15% remains well above management's 28-29% full-year guidance, driven by international entity losses
- Subsidiaries contributed a Rs.(18.16) Cr drag in Q2 (consolidated PAT Rs.38.57 Cr vs standalone Rs.56.73 Cr); 19 unreviewed subsidiaries posted a combined Q2 net loss of Rs.13.24 Cr
- H1 incremental contribution-margin-to-EBITDA flowthrough of 26.68% missed the guided Rs.50-57 per Rs.100 band
- Shopflo consolidated from 26 May 2026 with undisclosed revenue contribution, so consolidated (especially IAP) YoY growth is partly inorganic