Fintech firm Pine Labs Ltd. reported a 24% year-on-year increase in revenue to ₹806.2 crore for the September quarter of FY27, marking its fastest revenue growth in five quarters.
Net profit rose to ₹38.6 crore in Q2 FY27 from ₹6 crore a year earlier, while earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 67.3% year-on-year to ₹126 crore, compared with ₹75.3 crore in the corresponding quarter last year.
EBITDA margin expanded to 15.6% from 11.6% a year earlier, reflecting stronger operating performance alongside revenue growth.
Commenting on the results, Amrish Rau, chief executive officer of Pine Labs, said the company recorded growth across both its acceptance and issuing businesses during the quarter. International markets contributed 15% of revenue, while products launched in the past two years accounted for 14% of revenue.
Rau said the company has been EBITDA-positive for a long time and continues to balance investments in new products, ideas and geographies with its focus on maintaining profitability.
He added that Pine Labs aims to sustain revenue growth of 21%–23% while achieving EBITDA margins of over 20%, balancing expansion with operating profitability.
Pine Labs processes approximately 25 million transactions a day across its businesses, up around 22% year-on-year, according to the company.
The company also said that more than 29% of DITP gross transaction value (GTV) is now monetised through volume-linked arrangements, compared with 15% a year ago. It added that products launched within the past two years contributed 14% of quarterly revenue, while markets outside India accounted for 15%.
Pine Labs sees upside from proposed UPI MDR framework
Pine Labs said its average UPI ticket size stood at around ₹1,400 in Q2 FY27, with more than 65% of its UPI gross transaction value (GTV) coming from transactions above ₹2,000.
The company believes its strong presence across enterprise, mid-market and premium retail segments, where higher-value transactions are common, positions it to benefit from the proposed merchant discount rate (MDR) framework for UPI person-to-merchant (P2M) payments.
More than 70% of Pine Labs’ digital commerce platform (DCP) transactions are UPI-led. The company processes around ₹20,000 crore in monthly UPI GTV, which has grown at a compound annual growth rate (CAGR) of 68% over the past two years.
It expects this momentum to continue, targeting monthly UPI GTV of around ₹33,000 crore-₹34,000 crore in FY28.
Under the proposed framework from the National Payments Corporation of India (NPCI), an MDR cap of 0.4% would apply to transactions above ₹2,000. Pine Labs expects to earn its share of this revenue primarily through its acquiring bank partners, describing it as a high-margin revenue stream that could scale with transaction volumes.
The rollout has been deferred pending regulatory clarity. However, Pine Labs said its distribution network, technology and operational capabilities are ready to support implementation once the final framework and timeline are announced.
Pine Labs shares were trading 2.24% higher at ₹166.24 on Thursday, October 29. The stock has declined around 30% so far in 2026.
Pine Labs Q2 Results: Revenue growth hits five-quarter high at 24%; EBITDA rises 67%