Indian fintech company Pine Labs reported a more than sixfold rise in net profit in the second quarter of FY27, helped by higher transaction volumes and growing demand for digital payment services. The company recorded a consolidated net profit of ₹38.57 crore ($4.05 million) for the quarter ended September 30, 2026, compared with ₹5.97 crore in the same quarter last year.
Revenue from operations grew 24% year-on-year to ₹806.19 crore, up from ₹649.90 crore in the corresponding period of FY26. The increase was supported by growth in its payment acceptance business, online payment services and issuing solutions. The results show how the growing use of digital payments is supporting the company's business across India and international markets.
Key Highlights
- Pine Labs' Q2 Net Profit Jumps Sixfold as Revenue Rises 24%
- Pine Labs Reports Strong Q2 Profit Growth on Digital Payments Demand
Payment Business Supports Revenue Growth
Pine Labs' digital infrastructure and transaction platform remained its biggest source of revenue, recording 20.8% growth during the quarter. The segment benefited from increased payment activity and demand for digital solutions among businesses.
The company also saw a rise in demand for its payment terminals, particularly among mid-sized merchants. Its digital checkout point base in this category grew 49% year-on-year, showing that more businesses are adopting technology to manage customer payments.
Pine Labs provides payment solutions to businesses through point-of-sale machines, online payment gateways and other digital services. These products allow merchants to accept different payment methods and manage transactions more easily.
Its online payments business also recorded strong growth during the quarter. The company reported an increase of more than 45% in this segment, while gross transaction value rose 140%. The growth points to greater use of digital payment services by businesses and their customers.
The company's issuing business, which includes prepaid cards and other payment solutions, also contributed to its performance. Pine Labs continues to offer these services across areas such as employee benefits, corporate gifting, entertainment and mobility.
UPI Growth Creates New Revenue Opportunities
The growing use of the Unified Payments Interface (UPI) in India could provide further opportunities for Pine Labs. More than 500 million people use UPI for everyday payments, making it one of the country's most widely used digital payment systems.
Pine Labs has also highlighted the possibility of earning additional revenue from the proposed 0.4% merchant charge on eligible UPI transactions above ₹2,000. The company said nearly two-thirds of its UPI gross transaction value comes from transactions above this amount.
If implemented, the proposed framework could create another source of income for payment service providers. However, the actual impact will depend on the final rules and how the system is introduced.
Also Read: Finance Ministry Estimates India's Q2 FY27 GDP Growth at 7.35%
Outside India, Pine Labs operates in more than 22 markets, including countries across Southeast Asia and the Middle East. International operations contributed around 15% of its revenue during the quarter, giving the company another area for growth.
Pine Labs is also working to expand its payment services and strengthen its merchant network. As more businesses move towards digital transactions, the company is looking to increase its presence in both physical and online payment segments.
The latest results come at a time when competition in India's fintech industry is increasing. Payment companies are focusing on expanding their merchant networks, improving transaction services and developing new ways to generate revenue.
For Pine Labs, the next phase of growth will depend on its ability to attract more merchants, increase payment volumes and make its existing services more profitable. The company will also look to benefit from India's continued shift towards digital payments in India and opportunities in international markets.
