Pine Labs Posts Six-Fold Net Profit Rise in Q2 FY27 on Higher Margins and International Expansion

Pine Labs Ltd., the Indian fintech firm, reported a net profit of 38.6 crore rupees for the second quarter of fiscal year 2027, more than six times its level a year earlier. Revenue climbed 24% year‑on‑year to 806.2 crore rupees, marking the highest growth in five quarters.

The company said the results were driven by higher gross transaction value, new product launches and an expanding merchant network. Adjusted EBITDA rose 27% to 215.5 crore rupees, while total expenses grew 16% to 770.4 crore rupees, reflecting operating leverage that outpaced cost increases.

Pine Labs highlighted several growth engines. Its digital infrastructure and issuing platform verticals posted double‑digit growth, and AI‑enabled credit underwriting tools now process over 100,000 loans each month. The firm also expects a “meaningful upside” from a proposed re‑introduction of merchant discount rates on UPI transactions above 2,000 rupees, and plans to deploy additional soundbox devices to capture more merchant wallet share.

International Footprint Expands

International operations contributed about 15% of Pine Labs’ top line in the quarter. The company now operates in more than 22 markets, with notable momentum in Southeast Asia. Revenue and digital checkout points grew rapidly in the region, and the United Arab Emirates business crossed a significant daily transaction milestone. Pine Labs is also building presence in the Philippines and Singapore, diversifying its revenue base beyond India.

Outlook

Management said the firm will continue to deepen monetisation through value‑added services and further AI‑driven credit solutions. The company aims to leverage its expanding merchant ecosystem and international reach to sustain profit growth.

Why it matters: Pine Labs’ sharp profit rise and expanding footprint signal stronger fintech services for merchants across India and the Middle East, where digital payments are accelerating. The firm’s focus on AI credit tools and potential changes to UPI discount rates could affect transaction costs and financing options for businesses in the region.