Pine Labs Reports 84% Surge in Q2 Net Profit to ₹38.6 Crore

Pine Labs has announced a remarkable 84% increase in its net profit for the second quarter of FY27, reaching ₹38.6 crore. This growth was reported on Thursday, prompting a surge in the company's shares, which rose over 7% during intraday trading, peaking at ₹174.80 before settling at ₹166.20, a 3.32% increase by mid-afternoon.

The fintech company’s consolidated revenue also saw a significant rise, climbing 24% to ₹806.2 crore compared to ₹650 crore in the same quarter last year. This marks the fastest revenue growth for Pine Labs in five quarters, indicating a strong recovery and expansion in its business operations.

Pine Labs' earnings before interest, tax, depreciation, and amortization (EBITDA) surged by 67.3% to ₹126 crore, up from ₹75.3 crore a year earlier. The EBITDA margin improved to 15.6%, reflecting the company's effective cost management strategies. CEO Amrish Rau highlighted that both acceptance and issuing businesses contributed to this growth, with international markets accounting for 15% of total revenue.

The company has also noted that products launched in the last two years have contributed 14% to its revenue. Pine Labs remains committed to balancing investment in new products with profitability, aiming for a revenue growth rate of 21-23% while maintaining EBITDA margins above 20%. The average Unified Payments Interface (UPI) ticket size was reported at ₹1,400, with transactions over ₹2,000 making up over 65% of the UPI gross transaction value.

Looking ahead, Pine Labs is optimistic about sustaining its growth momentum, targeting a monthly UPI gross transaction value of ₹33,000-34,000 crore in FY28. The company processes approximately ₹20,000 crore in monthly UPI GTV, which has seen a compound annual growth rate of 68% over the past two years, indicating a strong position in the digital payments landscape.