Shares of Pine Labs gained nearly 4 percent in intraday trading on August 27 after Investec initiated coverage on the fintech company with a Buy rating and a target price of Rs 200 per share. The target implies an upside of around 20 percent from the previous close.

Pine Labs shares climbed as much as 3.7 percent during the session before paring gains. The stock was trading around Rs 169.4, up 1.5 percent, during the session.

Investec described Pine Labs as a leading merchant focused fintech platform with more than 20 lakh point of sale terminals. The brokerage estimates that the company has around 17 percent of the overall POS terminal market and more than 60 percent share among enterprise merchants.

The brokerage also highlighted Pine Labs presence in affordability solutions, including POS financing, as an important value added business. The company processes around 85 percent of offline white goods buy now pay later transactions and works with more than 450 brands and over 40 financial institutions.

Pine Labs also holds an estimated 90 percent share of the gift card processing market, further strengthening its presence across the merchant commerce ecosystem.

Investec expects increasing scale and a greater contribution from higher margin businesses to support profitability. Pine Labs EBITDA margin improved from virtually nil in FY23 to 13 percent in FY26, while its PAT margin reached 4 percent in FY26.

The brokerage expects Pine Labs revenue to grow at a compound annual growth rate of around 20 percent between FY26 and FY29. It also expects PAT margin to expand significantly to 14 percent by FY29.

The positive outlook follows a strong start to FY27. Pine Labs reported a 20 percent year on year increase in revenue to Rs 737 crore in the June quarter, while net profit quadrupled to Rs 20 crore from Rs 5 crore in the year ago period. Profit before tax stood at Rs 38 crore compared with a loss of Rs 5 crore a year earlier.

Adjusted EBITDA stood at Rs 126 crore for the quarter, translating into a margin of 17.1 percent. The company processed a gross transaction value of around Rs 4.22 lakh crore during the quarter.

Despite the intraday gains, Pine Labs shares remained down 27.9 percent so far in 2026, compared with a 7.5 percent decline in the Nifty 50. The company had a market capitalisation of around Rs 19,600 crore at the prevailing market price.