Pine Labs shares jump 7% as Q2 net profit soars 543% YoY to Rs 39 crore - The

Shares of Pine Labs climbed as much as 7% to hit an intraday high of Rs 173.80 on the NSE on Thursday after the fintech company reported a multifold year-on-year jump in net profit for the second quarter of FY27.The stock pared some gains subsequently but continued to trade in the green. At 2:26 pm, shares of Pine Labs were trading at Rs 165.93, up 5.25% from the previous close of Rs 162.60 on the NSE.Pine Labs Q2 resultsPine Labs reported a net profit of Rs 38.6 crore in Q2FY27, compared to Rs 6 crore in the year-ago period, marking a more than sixfold increase in profitability.Revenue from operations rose 24% year-on-year to Rs 806.2 crore, compared with Rs 650 crore in the corresponding quarter last fiscal.Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 67.3% to Rs 126 crore from Rs 75.3 crore a year earlier.

The EBITDA margin expanded to 15.6% from 11.6% in the year-ago quarter.The company's digital commerce platform (DCP) base grew 17% year-on-year to 22.3 lakh, with growth in the mid-market segment offsetting a steady performance in enterprise. Its mid-market DCP base expanded 49% year-on-year.Transaction volumes also gained traction across key payment products. Gross transaction value (GTV) across Flow, Affordability and Transaction Processing grew 52% year-on-year, while UPI GTV increased more than 77%.Pine Labs said it plans to roll out 10 lakh QR soundboxes over the medium term to deepen its UPI acceptance network across retail and premium retail merchants.

The company is expanding its presence across agentic commerce, cross-border payments, small and medium businesses (SMBs), and government-related payment segments.At Global Fintech Fest 2026, Pine Labs demonstrated what it described as the industry's first live autonomous agentic transaction on BigBasket, highlighting its push into AI-enabled commerce.The issuing business grew more than 31% year-on-year, with India registering growth of 40%.

Newer categories, including employee benefits, entertainment, corporate gifting, gaming and mobility, are also contributing to the company's expansion. Its Bharat Yatra mobility initiative remains on track to facilitate around 5 million trips in FY27.International business gains tractionPine Labs' international operations continued to expand, with Southeast Asia revenue growing around 40% year-on-year.

Its digital commerce platform base in the region approached 1 lakh, nearly 2.7 times the year-ago level, while its UAE business crossed 1 lakh daily transactions.The company operates across more than 22 markets, with credit processing capabilities in over 17 markets. It is looking to extend its Malaysia playbook to the UAE, the Philippines and Singapore as it scales its international franchise.International markets accounted for 15% of revenue during the quarter, while products launched over the past two years contributed 14% of revenue, according to the company.UPI monetisation, AI in focusPine Labs is also positioning itself to benefit from potential monetisation opportunities in UPI payments, alongside investments in artificial intelligence, information security and international expansion.The company said more than 70% of transactions on its digital commerce platform already run on UPI, while over 65% of UPI GTV comes from transactions with ticket sizes above Rs 2,000.

It expects the UPI merchant discount rate (MDR) framework for eligible person-to-merchant transactions to provide a potential growth opportunity.The company also highlighted the growing role of AI in its operations, saying AI agents now contribute around 89% of code changes. It plans to reinvest efficiency gains into new products, markets and business categories while maintaining profitability.“Q2 was an all-round quarter—growth across acceptance and issuing, 15% of revenues from global markets, and 14% from products launched only in the last two years,” said Amrish Rau, CEO of Pine Labs.Pine Labs has remained EBITDA-positive for a long time, Rau said, adding that the company aims to balance investments in new products, ideas and geographies with sustainable profitability.The company is targeting revenue growth of 21-23% and EBITDA margins of over 20% as it scales its commerce infrastructure platform.“The opportunity set in front of us is widening, not narrowing,” Rau said, pointing to new product launches, the planned soundbox rollout, agentic commerce and emerging UPI monetisation opportunities as key areas of focus.Pine Labs said its strategy remains centred on building a larger commerce infrastructure platform across markets and categories while sustaining profitable growth over the long term.Disclosure: This article has been written by Kumar Gaurav, who is not a Sebi-registered Research Analyst or an Investment Adviser.

Gaurav and their ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective Sebi-registered Research Analyst/brokerage and have been reproduced/reported with due attribution.

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