Motilal Oswal initiates Pine Labs with Buy, Rs 250 target
The brokerage sees payments, affordability, merchant acquisition and international expansion driving Pine Labs’ growth, projecting 24% revenue CAGR and 46% adjusted EBITDA CAGR over FY26–28.
What happened
Motilal Oswal initiated Pine Labs with a Buy rating and Rs 250 target, citing payments, affordability, merchant expansion and international growth. It forecasts
Key facts
- Buy rating
- Target price: Rs 250
- Implied upside: around 30%
- More than 1 million merchants
- 750-plus brands and enterprises
What changed
Motilal Oswal initiated Pine Labs with a Buy rating and Rs 250 target, citing payments, affordability, merchant expansion and international growth. It forecasts strong FY26-28 revenue, EBITDA and profit growth, with adjusted EBITDA margin rising to 28.7% by FY28.
Why this matters
Pine Labs’ Buy initiation underscores a growth agenda centered on deeper merchant acquisition, affordability products, payments scale and international expansion, with EBITDA margins projected to rise sharply by FY28.
What to watch
- Quarterly revenue growth versus the implied 24% FY26-FY28 CAGR.
- Adjusted EBITDA margin progression toward the 28.7% FY28 forecast.
- Merchant count growth, active merchant retention and enterprise merchant wins.
- Growth in affordability transactions, EMI penetration and issuer/brand funding support.
- Take-rate trends and the share of revenue from software, gift cards, cross-border and other value-added services.