Pine Labs Q2 profit jumps more than sixfold to ₹38.6 crore

Pine Labs more than sextupled its net profit in the second quarter of fiscal 2027. The fintech company posted ₹38.6 crore, up from ₹6 crore a year earlier and 97% higher than the ₹19.6 crore it earned in the previous quarter.

Operating revenue rose 24% year on year and 9% sequentially to ₹806.2 crore. With other income of ₹25.6 crore, total income reached ₹831.7 crore, compared with ₹672.9 crore in Q2 FY26. Total expenses grew a slower 16% to ₹770.4 crore, which explains why profit outpaced revenue. Adjusted EBITDA climbed 27% to ₹215.5 crore, a margin of 19.2%, while operating cash flow doubled to ₹350 crore. Net cash stood at ₹2,345 crore on September 30, 2026.

CEO Amrish Rau said the company aims to balance investment in new products and regions with EBITDA margins above 20% and revenue growth of 21-23%.

Growth across segments and markets

Revenue from the digital infrastructure and transaction platform business rose 21% to ₹440.1 crore, while the issuing and acquiring platform grew 30% to ₹274.6 crore. Pine Labs processed about ₹4.45 lakh crore ($46.5 billion) in gross transaction value across 229 crore transactions. Its merchant base grew 13% to 11.6 lakh and digital checkout points rose 17% to 2.23 lakh.

International markets supplied 15% of revenue. Southeast Asian revenue grew about 40%, and the company's checkout points there nearly tripled to 1 lakh. Its UAE business passed 1 lakh daily transactions, and expansion is under way in the UAE, the Philippines and Singapore.

UPI MDR upside

Pine Labs expects a "meaningful upside" from the proposed UPI merchant discount rate framework. Under NPCI's proposal, a 0.4% cap would apply to payments above ₹2,000. More than 65% of Pine Labs' UPI transaction value comes from such payments, and it expects to earn its share mainly through acquiring bank partners. Shares traded 2% higher at ₹166.15 on the BSE.