Shares of Pine Labs rose more than 4% after Q4 results. Why Morgan Stanley predicts 67% upside

Shares of Pine Labs traded on BSE on Tuesday at Rs. 152.80 to their intra-day high of 4.5% as it closed in the quarter ended March at Rs. 59 crore reported a consolidated net profit, compared to Rs. 29 crore as compared to a net loss, marking a turnaround in profits.

Revenue from operations during Q4FY26 rose 17% YoY to Rs. 701 crore as compared to Rs. 599 crore was registered. On a sequential basis, the profit after tax posted in Q3FY26 was Rs. 42 crore, up 40%, though revenue reported in the October-December quarter was Rs. 744 crores down by about 6%.

For the full financial year FY26, the company in FY25 posted Rs. 2,274 crore as against Rs. 2,711 crore in revenue, representing a growth of 19%. The company during the year Rs. 113 crore in profit as against Rs. 145 crore was facing a loss.

Pine Labs Share Price: Buy, Sell, Hold?

Morgan Stanley maintained its “equal-weight” rating on Pine Labs with a rise of 67% to Rs. Maintained with a target price of 245. The brokerage noted that Q4 revenue growth of 17% year-on-year came in nearly 3% below consensus estimates, while adjusted EBITDA rose 73% year-on-year but fell short of expectations.

Management has guided for medium-term revenue growth of 21-23.5%. Morgan Stanley highlighted that the Issuing and Acquiring business continued to report strong growth of 24% year-on-year, while flow, affordability and transaction processing GTV grew by 44% year-on-year.

The brokerage also pointed to a sharp improvement in operating leverage and cash flow conversion during FY26. However, he noted that geopolitical tensions in the Middle East had affected the company’s international business. Net cash at the end of March 2026 was Rs. 24.5 billion.

Shares of Pine Labs are down 24% in the past 1 month and nearly 36% since the start of the year. The fintech company made a strong debut on the BSE on November 14, trading at Rs. 242, which is more than its Rs. 221 is a 9.5% premium over the IPO price.

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