Pine Labs put up a strong show in Q2 FY27. Buoyed by broad-based improvement across its core verticals and rising margins, the fintech major’s revenue growth hit a five-quarter high during the quarter while its net profit skyrocketed six-fold. 

Double Growth Engine: The startup’s Q2 performance reflected higher GTV, new products, an expanding merchant ecosystem and double-digit growth across its core digital infrastructure and issuing platform verticals. In addition, increased operating leverage outpaced expense growth, further strengthening cash flows. 

The company also continued to deepen its monetisation capabilities through new value-added services and AI-led credit underwriting tools that process over 1 Lakh loans monthly.

The MDR Boost: Pine Labs sees a “meaningful upside” from the proposal to re-introduce merchant discount rate on UPI transactions above ₹2,000. Given that enterprise merchants drive a substantial share of its volume, the company plans to aggressively deploy additional soundbox devices to capture a bigger chunk of merchant wallet share.

Around The World: International markets are also becoming a bigger part of Pine Labs’ business, contributing 15% of its top line in Q2. The company now operates across more than 22 markets and is seeing strong momentum in Southeast Asia, where revenue and digital checkout points expanded rapidly in the quarter. While the UAE business crossed a meaningful daily transaction milestone, the company is also building presence in the Philippines and Singapore. 

These markets give Pine Labs a broader runway beyond India and reduce dependence on any single regulatory environment.

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