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%,” CEO Amrish Rau said.

Pine Labs Sees Growth Across Payments, International Markets

Pine Labs’ two business verticals — digital infrastructure and transaction platform (DITP) and issuing and acquiring platform (AIP) — registered double-digit revenue growth 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.

The company’s flow-based income grew 25% YoY, while transaction volumes increased around 50%, partly driven by market share gains in UPI. Pine Labs is also diversifying its flow-based revenue streams through data-related services, marketing, advertising and other transaction-linked services.

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.

The company is looking to expand its UPI business as organised retailers increasingly adopt device-based payments. Around 75-77% of transactions on Pine Labs’ POS machines were UPI transactions, with volumes growing at a compounded rate of around 68% over the past two years, Rau said in a post-earnings call.

He added that Pine Labs plans to deploy at least 10 Lakh additional soundboxes to tap the growing opportunity in merchant payments.

Other growth initiatives include scaling up gaming-related gift card distribution, launching an employee tax-benefit card by late November or early December, and expanding affordability services to more product categories in Q3 FY27.

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. In the UAE, Pine Labs crossed 1 Lakh daily transactions and provides offline and online payment technology to Emirates NBD and Wio Bank.

The company is also nearing 1 Lakh POS deployments in Malaysia and has 50,000 POS machines running on its platform in the Philippines. It 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 eyeing a significant revenue opportunity from the proposed UPI merchant discount rate (MDR) framework, which would allow payment companies to earn fees on eligible transactions above ₹2,000.

The listed fintech said more than 70% of transactions on its device commerce platform (DCP) are UPI-led, with transactions above ₹2,000 accounting for over 65% of its UPI gross transaction value (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. 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, Rau said during 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.

Responding to an estimate that the proposed framework could generate annual revenue of ₹80-230 Cr for Pine Labs, Rau said the numbers were broadly correct. However, he added that the company would wait for the MDR framework to be implemented before factoring in the potential revenue.

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 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.”

Earlier this month, NPCI deferred the rollout of MDR on select UPI merchant transactions, originally scheduled for October 15, until immediately after Diwali. The revised implementation date is yet to be announced.

Shares of Pine Labs ended today’s trading 1.03% higher at ₹123.05 apiece on the BSE.