Shareholder letter
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2 Our Vision Q2 FY27 To build the best commerce and fintech platform from Asia, for the world. 2
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Key Highlights – Q2 FY27 (1) Exchange rate $1= ₹ 95.59 (Avg. RBI reference rate for the quarter) ; For Definitions, please refer to the glossary. Revenue from Operations Contribution Margin 18% YoY Adjusted EBITDA 27% YoY 19% Margin ₹806 Cr ₹587 Cr ₹155 Cr Profit after Tax ₹39 Cr Platform GTV Number of Transactions (#) Digital Checkout Points (#) ~$46.5 Bn1 (₹445k Cr) 229 Cr 22.3 Lakh Number of Merchants (#) 11.6 Lakh 24% YoY 6x YoY Q2 FY27 17% YoY22% YoY 13% YoY 3
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Revenue growth accelerates to a 5 quarter high of ~24% YoY; Driving improvement in profitability and cash flow Q2 FY27 440 499 532 210 238 275650 737 806 Q2 FY26 Q1 FY27 Q2 FY27 122 126 155 Q2 FY26 Q1 FY27 Q2 FY27 6 20 39 Q2 FY26 Q1 FY27 Q2 FY27 152 (159) 350 Q2 FY26 Q1 FY27 Q2 FY27 Revenue from Operations +24% YoY ₹ Cr ■ DITP1 +21% ■ IAP2 +31% Adjusted EBITDA +27% YoY ₹ Cr Adj. EBITDA margin Profit after Tax 6x YoY ₹ Cr Operating Cashflow 2x YoY ₹ Cr % 1DITP: Digital Infrastructure and Transaction Platform 2IAP: Issuing and Acquiring Platform +24% +₹33 Cr 18.8% 17.1% 19.2% 6x 2x 4
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Our underlying businesses continue to compound 17% Overall DCPs base YoY, Q2 FY27 49% Mid-market DCPs base YoY, Q2 FY27 In-store Payments Mid-market led, enterprise anchored: Continuing to drive higher flow-based revenue Partnerships with Global tech players: Deepening Tap & Pay, UPI & wallet acceptance UPI is the next frontier: ~10 lakh soundbox deployments over the medium term Online Payments New value pools: Agentic commerce, cross-border, SMB & government 52% GTV YoY, Q2 FY27 77% UPI GTV YoY, Q2 FY27 Multiple levers to monetize GTV : DCC, GrowthX, UPI, Scan & Go, Payment Aggregation Expansion of Affordability TAM: Growth across Q-commerce, UPI-based, Non-Consumer electronics & Int’l markets 31% Revenue YoY, Q2 FY27 Core processing & distribution compounding: multi-year contracts, new brands New value pools: wallets, entertainment & corporate gifting, D2C scaling; employee benefits, gaming & mobility (Bharat Yatra) gaining momentum International: regional expansion via anchor retail & travel relationships ~40% SEA revenue YoY, Q2 FY27 2.7x DCPs YoY, Q2 FY27 (80k base) Presence across 22+ markets, credit processing for banks & fintechs in 17+ markets 80k+ DCPs (SEA); ~1 lakh daily transactions (UAE) Where we are heading: Malaysia playbook to the UAE, Philippines & Singapore Q2 FY27 1. Extended long-term strategic partnerships with three major accounts, including India top e-commerce players and Australia’s leading retailer; 2. We clarify that sale of gift cards of Roblox, as stated in earlier letter, was through a 3rd party distributor and statement did not intend to imply a formal direct contractual relationship between Pine Labs and Roblox. Pine Labs had immediately suspended sale of Roblox gift cards and has since then attempted a direct formal contractual relati onship with Roblox to allow relaunch of Roblox gift card products. Key Client Renewals1 Multi-year contract extensions 70%+ UPI transactions mix on DCPs Q2 FY27 45%+ Online payments YoY, Q2 FY27 In-store & Online Payments Flow, Affordability & Transaction Processing Issuing & Acquiring2 International Business Q2 FY27 highlights 5
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Key products launched at Global Fintech Fest 2026 Q2 FY27 Employee Benefits Card (Prism) Multi-wallet, compliant, widely accepted card on Pine Labs' acceptance and issuing network; employers offer tax benefits Digital Mobility Card Issuance Mobile becomes the ticket for multiple public transport; launched in partnership with a major global tech player Stablecoin prepaid card for International markets Issuers and fintechs offer open-loop prepaid cards funded by any stablecoin wallet; merchants still settle in local currency. The solution is for Int’l markets Partner Central Connects merchants with trusted business solutions across billing, finance, marketing and loyalty, simplifying discovery and adoption through Pine Labs Commerce OS Agent Toolkit Ready-to-deploy AI agents that autonomously handle repetitive workflows with built-in controls, guardrails and auditability, simplifying merchant operations and improving efficiency Agentic Commerce As commerce automates, we address the full chain – Full stack agentic commerce platform (agents, trust, payments, orchestration); significant software monetization bundled with payments; live transaction demonstrated on Big Basket at GFF Cross-Border Import Payments Indian customers pay overseas sellers via familiar local methods; Pine Labs manages payments, compliance, refunds and settlement Innovating, winning transactions and making commerce seamless Opens a significant new TAM; 50m+ formal employees Addresses India’s 50mn+ daily metro & bus commuters Early bet on global payments, positions us for stablecoin-led cross-border flows Deepens merchant engagement through operational efficiency gains and drives volume growth as merchants AI capabilities compound over time As merchants scale their agentic operations, we grow with them—monetizing at each new layer as their AI maturity advances Pine Labs is one of the few payment companies with this capability—and one of our highest-margin revenue streams Business Product launches/showcased Opening new value poolsWhat it does Issuing & Acquiring Agentic & Online Payments In-store Payments 6
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What’s on Investors’ minds? (1/5) How has revenue growth performed this quarter? Do you expect this pace of growth to continue in H2? Q2 FY27 Q2 FY27 revenue grew 24% YoY reflecting broad-based momentum across both our platforms. Our confidence in sustaining this pace into H2 is anchored in the breadth of growth engines now contributing to the top line — merchant acquisition, deeper monetization of the installed base, newer products and use cases, and international expansion. DITP • Our Mid-market investments are delivering strong results, with DCPs growing 49% YoY & monetization deepening beyond subscriptions through higher flow-based revenue. In Q2, we entered a new strategic partnership with a global payments technology player to scale Tap & Pay and UPI transactions, further strengthening the growth opportunity. • Subscription revenue now contributes 27% of overall revenue, while 30% of our installed DCP base is now generating flow & affordability GTV. Strong DCP residency + omni channel payments is unlocking deeper monetization, as we move beyond subscription revenues to more GTV-linked revenues, with 29%+ of DITP* GTV now monetized vs. 18% a year ago through flow, affordability & online payments. Solutions such as DCC, Growthx, Scan & Go, Payment aggregation etc. are scaling rapidly. • Affordability continues to scale and diversify with emerging channels and international increasingly becoming meaningful growth vectors. During the quarter, we have expanded multi-issuer affordability across leading electronics brands in Malaysia with 13 issuers already onboarded. • Online Payments expanded through agentic commerce and cross-border payments, while Fintech Infrastructure continued to scale with transactions growing 33%+ YoY and SignalIQ now processing 125,000+ loans monthly. IAP • India business saw significant growth momentum with revenue growing 40%+ YoY. In Processing, large tenured clients continue to see strong growth momentum, validating the potential of prepaid solutions as a great engine for driving commerce. In distribution, we expanded rapidly across network and partners. • Broadening prepaid opportunity-gaming continue to scale, with emerging growth avenues across employee benefits, refund wallets, entertainment gifting (4x GTV YoY), corporate rewards (GTV +70% YoY H1) & mobility gaining traction over a small base. • International anchoring for scale — Six airlines live in H1 FY27 (highest-ever first half, with another marquee go-live in H2), plus a multi-year renewal with a large ANZ retail conglomerate — moving international revenue beyond transactional economics. Together, these products are unlocking newer, higher-value revenue vectors & deepening our role as a fintech growth enabler. Q1 440 532 210 275650 806 Q2 FY26 Q2 FY27 Revenue from Operations +24% YoY ₹ Cr | ■ DITP ■ IAP +21% +31% 7 Overall Q2 FY27 GTV ₹445k Cr (up 5% YoY), Overall Q2 FY27 GTV ex Fintech Infrastructure ₹266k Cr (up 31% YoY), monetization in Fintech Infrastructure is based on number of transactions (up 33% YoY, Q2 FY27) *DITP Q2 FY27 GTV ₹427k Cr (Instore payments ₹125k Cr; Flow, Affordability & Trx. GTV ₹96k Cr; Online payments GTV ₹27k Cr; Fintech Infrastructure GTV ₹179k Cr)
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What’s on Investors’ minds? (2/5) Adjusted EBITDA margin remained strong at ~19% in Q2 FY27. How does management see indirect costs, ongoing investments and margins evolving through H2 FY27? Q2 FY27 We are excited about the opportunities ahead, and we are consciously investing in the future of commerce. Building that future means making deliberate choices today. Even as we invest, Adjusted EBITDA margin remained strong at ~19% in Q2 FY27 with 27% YoY growth. To build that future, we are rebalancing where we invest: • Employee cost: leaner overall, reinvested in growth – While we continue to optimize the employee cost (employee cost has decreased from 37% to ~30% of revenue YoY), we continue to invested in talent in 3 fast-growing areas: mid-market (DCPs up 49% YoY), international business development (SEA revenue up ~40% YoY) and towards product teams (SignalIQ, Switchboard, Agentic Payments). • Data, cloud and technology: scaling the platform: Tech cost has and will continue to grow in line with topline growth as indicated by management earlier. We continue to invest in our tech Infra where cost remains at ~8% of revenue. The investment largely is directed towards: a) New strategic projects — Agentic Commerce, Information Security, OMC business scaleup, International expansion, and our long-term engagement partnership with OpenAI. b) OEM-agnostic Terminal Management System c) AI adoption across internal platforms — telesales effort reduced by ~60%, ~89% of code changes written by AI, and 60%+ of email queries responded to by AI. Each builds capability and compounds productivity. • Other indirect costs: Costs grew due to two deliberate investments in future franchise value a) Brand build-out – Pine Labs is stepping up brand investments to position itself as the default commerce infrastructure for the global south. This includes the Global Fintech Fest, where we were a sponsor and showcased our flagship launches b) Deeper investments with our top merchants to ringfence relationships and expand wallet share across the full spectrum of use cases — gift cards, prepaid, affordability, wallets and newer categories — converting transactional engagements into multi-year franchise anchors. Our H1 investments in growth areas position us well; we remain committed to sustained investment in H2 as we see multiple growth opportunities emerging. These investments are calibrated to drive sustainable growth while maintaining operating margins. Strategic investment accelerates growth in our existing businesses and newer segments—mid-market, international markets, and UPI corridors—while enabling the rollout of ~10 lakh soundboxes over the medium term 122 155 Q2 FY26 Q2 FY27 Adjusted EBITDA +27% YoY ₹ Cr | Adj. EBITDA margin 18.8% 19.2% +₹33 Cr % Q2 8
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What’s on Investors’ minds? (3/5) While Adj EBITDA has grown by 27%, PAT increased ~ 6x. What is driving the improvement below Adjusted EBITDA? Q2 FY27 Q2 FY27 extended the sharp improvement in bottom-line performance that began in Q1 FY27. PBT grew to ₹61 Cr (+450% YoY) and PAT grew to ₹39 Cr (+546% YoY), reflecting operating leverage flowing through from Adjusted EBITDA, a moderating effective tax rate, and continued discipline on costs between EBITDA and PBT. • Q2 FY27 ETR moderated to ~37% (from 48% in Q1 FY27). The elevated ETR is a direct reflection of where we are in our investment cycle: several of our newer and international entities are currently loss-making as we invest to scale them, and their losses cannot be set off against profits in our India business for tax purposes. The consolidated ETR therefore reads higher than the underlying tax profile of the core franchise. As these entities scale toward profitability, and with Q3 seasonally being the strongest quarter for our profit-making entity — we expect the consolidated ETR to taper gradually to ~30% by the exit of FY27. • Continued discipline on ESOP (₹23 Cr, –20% YoY) and finance costs (₹14 Cr, –33% YoY), alongside a stable depreciation and amortization profile, will help maintain our profitability trajectory. Operating leverage and the moderating tax rate together position us well for continued step-up in PBT and PAT over the balance of FY27. 6 39 Q2 FY26 Q2 FY27 Profit after Tax 6x YoY ₹ Cr 6x Q3 9
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What’s on Investors’ minds? (4/5) What drove the sharp improvement in Operating Cash Flow this quarter? Q2 FY27 Operating cash flow was significantly stronger YoY in Q2 FY27: ₹350 Cr, vs ₹152 Cr in Q2 FY26. The step-up reflects better working capital management, with early settlement balance moving favorably versus the prior-year quarter. Net working capital at the end of Q2 FY27 stood at 14%, well within our full-year guidance of sub-15% for FY27. This reflects disciplined management of receivables, payables and working capital as the business continues to scale, and we remain confident of maintaining this trajectory through the balance of the year. While our business does have inter-quarter seasonality, we remain true to our guidance of Net working capital to remain within 13-15% of the annualized revenue. We continue to work on optimizing our working capital cycles. 152 350 Q2 FY26 Q2 FY27 Operating Cashflow 2x YoY ₹ Cr 2x Q4 10
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What’s on Investors’ minds? (5/5) Following recent regulatory developments on MDR on UPI, how does management see the opportunity for Pine Labs, given Pine labs platform processes large volumes of UPI linked transactions in the premium merchant category? How is the platform positioned to monetize it? Q2 FY27 The MDR framework on UPI (P2M) creates meaningful upside for Pine Labs. We’re uniquely positioned to capitalize on this opportunity. Today, 70%+ of our DCP transactions are UPI-led, and we’re processing ~₹20k Cr in monthly UPI GTV—growing at 68% CAGR over the last two years. We expect to sustain this growth momentum and believe we are on track to process ~₹33-34k Cr monthly GTV in FY28 Our average UPI ticket size is ~₹1,400 as of Q2 FY27 with more than 65% of our UPI GTV driven by transactions above ₹2,000. Combined with our stronghold in enterprise, mid- market, and premium retail segments, where transactions above ₹2,000 are common, we are well positioned. Under NPCI’s proposed framework, a 0.4% MDR cap applies to payments above ₹2,000, and we primarily expect to earn our proportion through our acquiring bank partners—a high- margin revenue stream that scales with volumes. Rollout has been deferred pending regulatory clarity, but our distribution, technology, and operations are ready to execute immediately once the final framework and implementation date are announced. Q5 11Please note that above data is excluding banking channel
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Management’s View: Income Statement (1/2) (1) Excluding ESOP expenses;(2) Includes other indirect expenses netted of liabilities no longer required written back; n.m. - not meaningfulQ2 FY27 Particulars Unit Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 YoY FY25 FY26 YoY Revenue from Operations ₹ Cr 650 744 701 737 806 24% 2,274 2,711 19% DITP ₹ Cr 440 496 466 499 532 21% 1,603 1,837 15% IAP ₹ Cr 210 248 234 238 275 31% 671 874 30% Less: Direct Expenses ₹ Cr 152 194 187 204 219 44% 545 669 23% Connectivity and Operational Cost ₹ Cr 32 36 33 40 41 30% 141 130 -8% COGS of DCP sale ₹ Cr 40 46 50 51 54 34% 136 176 30% Distribution cost of prepaid cards ₹ Cr 80 111 104 113 124 54% 269 364 35% Contribution Margin ₹ Cr 497 551 513 533 587 18% 1,729 2,041 18% Contribution Margin % % 77% 74% 73% 72% 73% 76% 75% Less: Indirect Expenses ₹ Cr 375 380 368 406 433 15% 1,372 1,482 8% Employee expenses1 ₹ Cr 239 232 220 242 245 2% 869 917 5% Data, cloud & tech ₹ Cr 55 58 46 64 67 22% 190 207 9% Legal, Audit & 3rd Party Consultancy ₹ Cr 35 32 34 38 44 28% 113 130 15% Others2 ₹ Cr 46 58 68 62 76 65% 200 228 14% Adjusted EBITDA ₹ Cr 122 171 146 126 155 27% 357 559 57% Adjusted EBITDA Margin % % 19% 23% 21% 17% 19% 16% 21% 12
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(1) Other Depreciation and Amortization includes amortization of right of use assets, amortization of software, other intangibles, and depreciation on other assets. (this also includes impairments, if any); (2) Others include other income net of liabilities and provision written back plus expenses/(income) relating to fund raising, acquisition and restructuring and fair value/foreign exchange loss (net); n.m.- not meaningful Q2 FY27 Particulars Unit Q2 FY26 Q3 FY26 Q4FY26 Q1FY27 Q2FY27 YoY FY25 FY26 YoY Adjusted EBITDA ₹ Cr 122 171 146 126 155 27% 357 559 57% Adjusted EBITDA % % 19% 23% 21% 17% 19% 16% 21% Less: Other Expenses ₹ Cr 111 108 77 89 93 -16% 493 422 -14% Depreciation on DCPs ₹ Cr 32 33 32 33 33 4% 140 128 -9% Other Depreciation and Amortization1 ₹ Cr 35 36 42 42 45 29% 197 147 -25% ESOP expense ₹ Cr 29 31 27 26 23 -20% 115 152 33% Finance cost ₹ Cr 21 24 17 13 14 -33% 79 83 5% Others (incl. other income)2 ₹ Cr -6 -28 -31 -25 -22 n.m. -38 -92 142% Exceptional Items3 ₹ Cr - 12 -9 0 0 - 0 3 n.m. Profit / (Loss) before Tax ₹ Cr 11 63 69 38 61 450% -136 138 n.m. Tax expenses/(credit) ₹ Cr 5 20 9 18 23 339% 9 25 175% Profit / (Loss) for the period / year ₹ Cr 6 42 59 20 39 546% -145 113 n.m. Management’s View: Income Statement (2/2) 13
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Key Performance Indicators (KPIs) *Revenue from external customers – Outside India as a percentage of revenue from operations (%)Q2 FY27 Particulars Unit Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 FY25 FY26 Revenue from operations ₹ Cr 650 744 701 737 806 2,274 2,711 DITP ₹ Cr 440 496 466 499 532 1,603 1,837 IAP ₹ Cr 210 248 234 238 275 671 874 % International Revenue* % 17% 13% 14% 16% 15% 15% 15% Contribution Margin (CM) ₹ Cr 497 551 513 533 587 1,729 2,041 CM as a percentage of revenue from operations % 77% 74% 73% 72% 73% 76% 75% Adjusted EBITDA ₹ Cr 122 171 146 126 155 357 559 Adjusted EBITDA Margin % 19% 23% 21% 17% 19% 16% 21% Platform Gross Transaction Value (“Platform GTV”) ₹ Cr (000’s) 424 451 435 422 445 1,143 1,715 Digital Infrastructure and Transaction Platform GTV ₹ Cr (000’s) 408 432 418 404 427 1,091 1,651 Flow, Affordability and Transaction Processing GTV ₹ Cr (000’s) 63 76 77 91 96 201 275 Issuing and Acquiring Platform GTV ₹ Cr (000’s) 16 18 16 18 18 52 64 Number of Transactions # Crore 188 193 185 201 229 569 740 Fintech Infrastructure Transactions # Crore 27 31 31 34 37 72 114 Digital check-out points (DCPs) # Lakh 19.0 19.3 20.3 21.7 22.3 17.8 20.3 Number of Merchants # Lakh 10.3 10.5 11.0 11.5 11.6 9.5 11.0 Prepaid Cards Issued # Crore 26 20 18 20 28 71 87 14
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Reconciliation Profit/Loss after Tax to Adjusted EBITDA (1) Other Income, excluding liabilities and provisions no longer required to be written backQ2 FY27 Particulars Unit Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 FY25 FY26 Profit/(loss) for the period/year (A) ₹ Cr 6 42 59 20 39 -145 113 Add: Total tax expense/(credit) (B) ₹ Cr 5 20 9 18 23 9 25 Add: Finance costs (C) ₹ Cr 21 24 17 13 14 79 84 Add: Depreciation and amortization expenses (D) ₹ Cr 66 68 71 73 76 292 270 EBITDA (E = A+B+C+D) ₹ Cr 98 155 156 124 152 235 492 Add: Impairment of non-current assets (F) ₹ Cr 1 1 3 1 2 9 5 Add: Exceptional items (G) ₹ Cr - 12 -9 - - 37 3 Add: Employee share-based payment expense (H) ₹ Cr 29 31 27 26 23 115 152 Add: Fair valuation/Foreign exchange loss (net) (I) ₹ Cr - - 5 -0.4 (1) - 5 Less: Other income1 (J) ₹ Cr -6 -30 -36 -24 (21) -44 -84 Add: Legal and professional expense relating to fund raising, acquisition and restructuring (K) ₹ Cr - 1 - - - 5 5 Less : Liability written back on settlement of purchase consideration payable (L) ₹ Cr - - - - -19 Adjusted EBITDA (M= E + F + G + H + I – J + K –L) ₹ Cr 122 171 146 126 155 357 559 Revenue from operations (N) ₹ Cr 650 744 701 737 806 2,274 2,711 Adjusted EBITDA Margin (%) (O = N/M) % 19% 23% 21% 17% 19% 16% 21% 15
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Reconciliation Adjusted EBITDA to Operating Cash Flow Q2 FY27 Particulars Unit Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 FY24 FY25 FY26 Adjusted EBITDA (A) ₹ Cr 122 171 146 126 155 158 357 559 Working capital adjustments without early settlement ₹ Cr 138 -272 228 -126 65 -38 -101 1 Income taxes (paid)/ received (net of refunds) ₹ Cr -30 -23 75 64 -45 -12 38 -5 Other items ₹ Cr 12 0 25 14 25 -59 -45 -1 Operating Cash Flow (Ex Early settlement) ₹ Cr 241 -124 474 78 200 49 250 554 Add/less: Early Settlement ₹ Cr -89 -28 202 -237 150 -278 -200 -159 Operating Cash Flow (Inc Early settlement) (B) ₹ Cr 152 -152 676 -159 350 -229 50 395 Operating Cashflow to Adjusted EBITDA (%) (C = B/A) % -145% 14% 71% As of 30th Sep’26 - Gross Cash balance ₹2,528 Cr I Borrowings ₹183 Cr I Net Cash balance of ₹2,345 Cr 16
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Glossary (1/2) Q2 FY27 Term Description Adjusted EBITDA Adjusted EBITDA which is calculated as EBITDA less (i) other income; plus (ii) impairment of non-current assets; plus (iii) exceptional items; plus (iv) employee share based payment expense; plus (v) foreign exchange loss (net); plus (vi) liabilities and provisions no longer required written back; plus (vii) legal and professional expense relating to fund raising, acquisition and restructuring; plus (viii) employment incentive linked to acquisitions less (ix) liability written back on settlement of purchase consideration payable. Adjusted EBITDA does not include certain components of other income, namely interest income under the effective interest method on financial assets carried at amortised cost on bank deposits, interest income under the effective interest method on financial assets carried at amortised cost on security deposits, interest income under the effective interest method on financial assets carried at amortised cost on finance lease, interest on income tax refunds, gain on sale of property, plant and equipment, liability written back on settlement of purchase consideration payable, net gain on lease termination, net gain arising on financial assets mandatorily measured at FVTPL on fair valuation income on derivative call option, gain on sale of mutual funds and fair valuation gain of mutual funds and miscellaneous income. EBITDA is earnings before interest, tax, depreciation and amortisation expenses which is calculated as profit/(loss) for the period/year plus (i) tax expenses; plus (ii) finance costs; plus (iii) depreciation and amortisation. Adjusted EBITDA Margin Adjusted EBITDA Margin is Adjusted EBITDA divided by revenue from operations for the year/period. Flow, Affordability and Transaction Processing GTV Affordability, Flow and Transaction Processing GTV is defined as the total transaction value primarily processed for our Affordability solutions, Payment Aggregation, Dynamic Currency Conversion (DCC) and UPI offerings. This is a subset of entire Digital Infrastructure and Transaction Platform GTV. Contribution Margin Contribution Margin is calculated by deducting the transaction and related costs, purchases of stock-in-trade and changes in inventories of stock-in-trade (excluding attributable employee benefits expense, finance costs, depreciation and amortisation expenses, impairment of non-current assets, impairment losses on financial assets and contract assets and other expenses) from revenue from operations for the period/year. Contribution Margin as a percentage of revenue from operations Contribution Margin as a percentage of revenue from operations is Contribution Margin divided by revenue from operations for the year/period. “Digital check-out points” or “DCPs” Digital check-out points represent the number of live touchpoints (at the end of the period) at merchant stores powered by our platform. 17
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Glossary (2/2) Q2 FY27 Term Description Digital Infrastructure and Transaction Platform GTV Digital Infrastructure and Transaction Platform (DITP) GTV is defined as the total transaction value processed through our Digital Infrastructure and Transaction Platform. Digital Infrastructure and Transaction Platform Revenue Digital Infrastructure and Transaction Platform Revenue includes revenue derived from subscription, transaction, flow and other services offered including Affordability transactions. Revenue is primarily earned from merchants, acquirers, credit partners and consumer brands. Fintech Infrastructure Transactions Fintech Infrastructure Transactions is defined as transactions to facilitate payment to a payee or biller or a transaction to collect financial data from financial institutions. Issuing and Acquiring Platform GTV Issuing and Acquiring Platform (IAP) GTV represents the total value of either (i) funds loaded onto prepaid instruments (through activations and reloads), or (ii) redemptions made through certain prepaid instruments, net of returns and chargebacks. It also includes the sale value of prepaid cards distributed. Issuing and Acquiring Platform Revenue Issuing and Acquiring Platform Revenue includes revenue primarily from issuing and processing services, distributing prepaid cards, interest on funds held for customers and breakage income. Number of Merchants Number of Merchants are the unique customers that are using at least one product on our platform at the end of the respective period. Number of Transactions Number of Transactions is defined as the aggregate number of transactions processed by the Group within all its product offerings. 18
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Disclaimer Forward looking statements Certain statements are included in this document which contain words or phrases, such as ‘will’, ‘aim’, ‘will likely result’, ‘believe’, ‘expect’, ‘will continue’, ‘anticipate’, ‘estimate’, ‘intend’, ‘plan’, ‘contemplate’, ‘seek to’, ‘future’, ‘objective’, ‘goal’, ‘project’, ‘should’, ‘will pursue’ and similar expressions or variations of these expressions, that are ‘forward-looking statements’. Forward-looking statements by their nature involve a number of risks and uncertainties that could cause actual results to differ materially from market expectations. Actual results may differ materially from those suggested by the forward-looking statements due to certain risks or uncertainties associated with our expectations with respect to, but not limited to, regulatory changes pertaining to the industry in which our Company has businesses and our ability to respond to them, our ability to successfully implement our strategy, our growth and expansion, technological changes, our exposure to market risks, general economic and political conditions, in India and globally, which have an impact on our business activities or investments, the monetary and fiscal policies of India, inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices, the performance of the financial markets in India and globally, changes in the Indian and foreign laws and regulations, including tax, accounting and RBI guidelines, changes in competition and the pricing environment in India, regional or general changes in asset valuations, pandemics, and general economic conditions affecting our industry, incidence of natural calamities and/or acts of violence. By their nature, certain of the market risk disclosures are only estimates and could be materially different from what may actually occur in the future. As a result, actual future gains, losses or impact on net income could materially differ from those that have been estimated. Our Company may, from time to time, make additional written and oral forward-looking statements, including in our reports to our shareholders. Such forward-looking statements represent only our Company’s current intentions, beliefs or expectations, and any forward-looking statement speaks only as of the date on which it was made. Neither our Company nor any of its directors, officers, employees, agents or advisers, or any of their respective affiliates, advisers or representatives, undertake to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise and none of them shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection therewith. Further, nothing in this document should be construed as constituting legal, business, tax or financial advice or a recommendation regarding the securities. Although our Company believes that such forward-looking statements are based on reasonable assumptions, we can give no assurance that such expectations will be met. You are cautioned not to place undue reliance on these forward-looking statements, which are based on current view of our Company’s management on future events. Forecasts and hypothetical examples are subject to uncertainty and contingencies outside our Company’s control. Past performance is not a reliable indication of future performance. Before acting on any information you should consider the appropriateness of the information having regard to these matters, and in particular, you should seek independent financial advice. Q2 FY27 19
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21 Digital Infrastructure & Transactions In-Store & Online Infrastructure Flow, Affordability & Transaction Processing Fintech Infrastructure Affordability and consumer engagement solutions to drive merchant growth API for digital public infrastructure across payments, data & insights Issuing & Acquiring Solutions for issuing, processing, distribution Prepaid, debit & credit issuance Issuance Processing & Distribution Monetisation modelWhat we do? Q2 FY27 Omnichannel payment acceptance Processing fees % of GTV Subscription & Take Rate Processing fees % of GTV Transaction based Fee Platform 21