Pine Labs shares are cheaper than peers but Citi target still below issue price; stock up 3%

Shares of Pine Labs Ltd. are expected to remain in focus on Wednesday, May 27, after the fintech major reported a sharp improvement in profitability and outlined a strong growth outlook for the coming years.

Brokerage firm Citi maintained a ‘Buy’ recommendation on Pine Labs with a target price of ₹235 per share following the company’s fourth-quarter earnings.

Citi said the company’s Q4 performance was largely in line with estimates, while projecting FY26 EBITDA and EBIT at ₹560 crore and ₹240 crore, respectively.

Pine Labs reported a turnaround in profitability during the quarter, posting a net profit of ₹59 crore compared to losses earlier. Revenue grew 17% year-on-year, although it came in slightly below analyst expectations.

EBITDA margins expanded sharply to 21%, reflecting improved operating efficiency.

The company also witnessed a significant jump in cash generation, with operating cash flow surging nearly eight-fold to ₹395 crore. Its online payments business remained a key growth driver, recording 56% growth during the period.

operations contributed around 15% of overall revenue, indicating steady traction in overseas markets as well.

Management has guided for revenue growth of 21% to 23.5% in the near term, with Citi highlighting a strong earnings growth outlook between FY26 and FY28.

Despite the earnings update, Pine Labs shares ended 4.92% lower at ₹139 on Tuesday. The stock has declined 41% so far in 2026.

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