MOFSL starts Pine Labs at Buy, sees ₹250 target on payments and merchant-acquiring growth
Motilal Oswal expects Pine Labs’ FY26-28 revenue to compound at 24%, with adjusted EBITDA margin rising to about 29% by FY28E. The brokerage cites digital payments, affordability solutions and potential MDR on large-value UPI transactions from October 2026.
What happened
Motilal Oswal initiated Pine Labs with a Buy and ₹250 target, citing growth in digital payments, affordability solutions and online payments. The brokerage
Key facts
- Buy target price: ₹250 per share
- Bull-case target: ₹330 per share (72% upside)
- Bear-case target: ₹140 per share (27% decline)
- FY26-28E revenue CAGR: 24% base case, 29% bull case, 18% bear case
- FY26-28E adjusted EBITDA CAGR: 46%
What changed
Motilal Oswal initiated Pine Labs with a Buy and ₹250 target, citing growth in digital payments, affordability solutions and online payments. The brokerage expects MDR on large-value UPI merchant transactions from October 2026 to support Pine Labs’ merchant-acquiring revenue.
Why this matters
Pine Labs’ Buy initiation validates its push into digital payments, merchant acquiring and affordability solutions, with execution now centered on delivering the forecast margin expansion to roughly 29% by FY28E.
What to watch
- Government, RBI and NPCI commentary on MDR for large-value UPI transactions and the precise October 2026 policy scope.
- Quarterly revenue growth relative to the implied 24% FY26-28 CAGR.
- Adjusted EBITDA margin trajectory toward approximately 29% by FY28E.
- Merchant-acquiring payment volumes, enterprise merchant additions and omnichannel penetration.
- Affordability-product adoption, lending-partner economics and cross-sell contribution.