Pine Labs Clarifies Media Reports on Profitability

Pine Labs Ltd has issued a clarification regarding recent media reports suggesting a potential hit to its profit story due to changes in gift card income streams. The company stated that the reports are speculative, incorrect, and misleading. Pine Labs emphasized that under its co-branded program structures, any breakage income belongs to the partner brand and has never been a material part of Pine Labs' revenue or profit. This operating model has been in place for over a decade. Consequently, the company does not foresee any meaningful impact on its business, revenue, or profitability, even with potential additional guidance from the RBI on breakage income treatment.