IPO closes on 11 Nov'25
Pine Labs Ltd
Minimum Investment
₹ 14,807 / 67 shares
Our Verdict:
Avoid
- Pine Labs Ltd (PLL), one of India’s leading merchant-commerce and digital payments platforms, has demonstrated strong topline and EBITDA growth but remains weak on profitability. The company has reported losses over the past three fiscal years, although it turned profitable in Q1FY26.
- Over the last two decades, PLL has built a comprehensive fintech ecosystem spanning payments, issuance and consumer credit, resulting in diversified revenue streams and strong operating leverage. Its platform integrates both digital infrastructure and transaction capabilities across issuing and acquiring, offering a level of integration unmatched by peers in India.
- The broader digital payments landscape continues to expand rapidly. The total payment value in India reached approximately Rs 116.8 lakh crore in FY25, growing at a CAGR of 36% from Rs 25.2 lakh crore in FY20. The market is expected to further rise to Rs 256–276 lakh crore by FY29, at an estimated CAGR of 22–24%, supported by deeper penetration of affordability solutions, increased card usage and greater adoption of digital payment systems across online and offline channels.
- While the IPO represents an attractive opportunity within a high-growth sector, its investment appeal is tempered by uncertainties around profitability. Given these factors, investors are advised to adopt a wait-and-watch approach. It would be prudent to evaluate the firm’s performance over the next few quarters and consider exposure only once profitability sustains and earnings visibility strengthens.
About the company
Founded in
18 May'98
Managing director
B. Amrish Rau
- PLL is a technology-driven company dedicated to digitizing commerce through innovative digital payment and issuing solutions. It serves merchants, consumer brands, enterprises and financial institutions through two key business segments: (i) Digital Infrastructure and Transaction Platform; and (ii) Issuing and Acquiring Platform. Currently, the firm has 988,304 merchants, 716 consumer brands and enterprises and 177 financial institutions on its platforms.
- The Digital Infrastructure and Transaction Platform provides API-enabled technology solutions that support financial institutions across the entire consumer lifecycle — from onboarding and underwriting to collections and engagement. In FY25, the company processed payments worth Rs 11.43 lakh crore in Gross Transaction Value (GTV), handling over 568 crore transactions through its platforms.
- The Issuing and Acquiring Platform helps consumer brands and enterprises issue, process and manage prepaid instruments and consumer engagement programs. Using cloud-based software technology, the company digitizes and secures commerce for its partner ecosystem. This segment recorded a GTV of Rs 51,517 crore in FY25.
STRENGTHS
- Market Leadership: PLL is the largest issuer of closed and semi-closed loop gift cards in India by transaction value (FY25). It also leads as the largest digital affordability solutions enabler at digital checkout points (DCPs) by processed value, ranks among the top five in-store digital platforms and is a key player in Bharat Connect transaction processing solutions.
- Strong Partnerships: PLL has established deep relationships across India’s digital ecosystem, partnering with leading brands such as Croma and HDFC Bank. The company has also expanded internationally, with operations across Malaysia, UAE, Singapore, Australia, the US and Africa. The share of revenue from international operations increased from 8.5% in FY23 to 14.85% in FY25 and further to 15.31% as of June 30, 2025. Its merchant base has nearly doubled, growing from 5.3 lakh in FY23 to over 9.8 lakh in FY25.
- Improving Financials: PLL’s revenue grew at a CAGR of approximately 19% between FY23 and FY25, while EBITDA rose at a faster CAGR of 35% during the same period. Losses have narrowed significantly, and the company achieved positive PAT in Q1 FY2026, marking a major milestone toward sustainable profitability.
- Scalable Model: PLL processed a Gross Transaction Value (GTV) of Rs 11,425 billion in FY25, up from Rs 4,397 billion in FY23 — a remarkable CAGR of nearly 60%. Transaction volumes rose to 5.7 billion in FY25, driven by wider merchant activation and entry into new verticals such as lifestyle, travel and healthcare.
RISK FACTORS
- Sustained Losses: Except for a small profit in Q1FY26, PLL has consistently incurred losses — Rs 145.5 crore in FY25, Rs 342 crore in FY24 and Rs 265 crore in FY23. Continued losses in the near term could constrain its ability to fund expansion and strategic initiatives.
- Customer Concentration: PLL’s revenue base is concentrated among a limited number of key clients, with the top 10 customers contributing 30.95% of revenue from operations in FY25. Any loss or reduced engagement from these clients could materially impact business performance.
- Legal Risks: PLL, along with certain subsidiaries, faces ongoing legal proceedings amounting to Rs 517 crore. Any adverse verdict could materially affect its financial standing and brand reputation.
- High Debt Levels: As of June 2025, total borrowings stood at Rs 888.74 crore. However, approximately 60% of this debt is earmarked for repayment through IPO proceeds, which should meaningfully reduce interest costs and strengthen the balance sheet.
- Cash Flow Concerns: PLL reported negative cash flows from operations in FY24, FY23, Q1 FY26 and Q1 FY25. Sustained negative cash flows may pressure liquidity and hinder operational flexibility, potentially affecting financial stability.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 3,899.91 crore
Fresh Issue
₹ 2,080 crore
OFS
₹ 1,819.91 crore
Price range
₹ 210 - 221
Lot size
67 shares
Issue Objective
The net proceeds from the fresh issue will be utilised for the following purposes:
- Repayment or prepayment of certain borrowings availed by the company and its subsidiaries;
- Investment in select subsidiaries to expand the company’s presence in international markets;
- Expenditure on IT assets, cloud infrastructure, technology development initiatives and procurement of DCPs; and
- General corporate purposes, including potential strategic and inorganic acquisitions.
Dates
Bidding open
7 Nov'25
Bidding close
11 Nov'25
Allotment date
12 Nov'25
Refund date
13 Nov'25
Listing
14 Nov'25
IPO Reservations
Qualified institutional buyers
>75%
Non-institutional investors
<15%
Retail individual investors
<10%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
This document has been issued by Liquide Solutions Private Limited for information purposes only. It does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek personal and independent advice regarding the appropriateness of investing in any of the funds, securities, other investment or investment strategies that may have been discussed or referred herein and should understand that the views regarding future prospects may or may not be realized. In no event shall Liquide Life Private Limited and / or its affiliates or any of their directors, trustees, officers and employees be liable for any direct, indirect, special, incidental or consequential damages arising out of the use of information / opinion herein.