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Pine Labs’ Q2 FY27 net profit jumped over 6X YoY to ₹38.6 Cr, while operating revenue rose 24% to ₹806.2 Cr Profit growth outpaced revenue growth as the fintech major continued to expand its top line Total income rose 24% YoY to ₹831.7 Cr, while total expenses increased 16% to ₹770.4 Cr in Q2 FY27 Pine Labs’ net profit jumped over 6X year-on-year (YoY) to ₹38.6 Cr in Q2 FY27 from ₹6 Cr in the year-ago quarter. Sequentially, net profit rose 97% from ₹19.6 Cr in Q1 FY27. Operating revenue grew 24% YoY and 9% sequentially to ₹806.2 Cr during the quarter. Including other income of ₹25.6 Cr, total income stood at ₹831.7 Cr, up 24% from ₹672.9 Cr in Q2 FY26. Total expenses rose 16% YoY to ₹770.4 Cr from ₹661.7 Cr in the year-ago quarter. Tax expenses stood at ₹22.8 Cr. Pine Labs’ adjusted EBITDA rose 27% YoY to ₹215.5 Cr in Q2 FY27, with a margin of 19.2%. Its operating cash flow doubled to ₹350 Cr, while its contribution margin grew 18% YoY to ₹587 Cr. The company had a net cash balance of ₹2,345 Cr as of September 30, 2026. “Pine Labs has been EBITDA-positive for a long time. We aim to balance investments in new products, ideas and regions while remaining strongly EBITDA-positive. We aim to strike a balance between EBITDA margins of over 20% and revenue growth of 21-23%,” said CEO Amrish Rau. Pine Labs Sees Growth Across Payments, International Markets Pine Labs’ two business verticals — digital infrastructure and transaction platform (DITP) & issuing and acquiring platform (AIP) — registered double digit revenue growths in the quarter. DITP’s revenue jumped 21% YoY to ₹440.1 Cr while AIP grew by 30% to ₹274.6 Cr. During the quarter, the platform processed around ₹4.45 Lakh Cr ($46.5 Bn) in gross transaction value (GTV) across 229 Cr transactions. Meanwhile, its merchant base grew 13% YoY to 11.6 Lakh, while digital checkout points (DCPs), which include point-of-sale terminals and other merchant payment acceptance solutions, increased 17% to 2.23 Lakh. More than 29% of Pine Labs’ DITP GTV was monetised through flow-based revenue, affordability and online payments, compared with 15% a year ago. Subscription revenue accounted for 27% of total revenue, while 30% of its DCPs generated flow and affordability GTV. Pine Labs’ fintech infrastructure business recorded over 33% YoY growth in transactions, with its AI-based credit underwriting platform, SignalIQ, processing more than 1.25 Lakh loans a month. International markets contributed 15% of Pine Labs’ revenue in Q2 FY27. The company operates in over 22 markets and offers credit processing services in more than 17. Revenue from Southeast Asia grew around 40% YoY, while its DCPs in the region nearly tripled to 1 Lakh. Its UAE business crossed 1 Lakh daily transactions, and the company is expanding in the UAE, the Philippines and Singapore, drawing on its experience in Malaysia. Pine Labs Sees Meaningful Upside From UPI MDR Pine Labs is seeing a “meaningful upside” from the proposed UPI merchant discount rate (MDR) framework, which could allow it to earn fees on eligible merchant transactions above ₹2,000. It noted that more than 70% of its DCP transactions are UPI-led, while transactions above ₹2,000 account for over 65% of its UPI GTV. “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,” the company said in its shareholder letter. Around three out of every four transactions on Pine Labs’ POS terminals are UPI transactions, with volumes growing at a compounded rate of around 68% over the past two years, CEO Rau said during the company’s Q2 FY27 earnings call. Under the proposed framework, the acquiring bank’s share of the 40 basis points (bps) MDR cap is expected to be around 11 bps, Rau said. To capture a larger share of the potential revenue, Pine Labs plans to deploy an additional 10 Lakh soundboxes at merchant locations where UPI transactions are currently processed through competitors’ devices. “There is a large merchant which has POS machines from Pine Labs and soundboxes from somebody else. Those are the things which we have been missing. We said we should take that back,” Rau said. He added that soundbox deployment had not been a priority earlier because UPI transactions did not generate monetisation opportunities for the company. “Now that it is monetisable, you can get the full wallet share,” he said. However, Pine Labs will need to hold individual commercial discussions with its largest enterprise clients before passing on the MDR. Rau also remained guarded on the implementation timeline, saying, “I have nothing more to add in terms of when UPI MDR will go live. Now it is completely in NPCI’s court.” Shares of Pine Labs ended today’s trading 1.03% higher at ₹123.05 apiece on the BSE.
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