Pine Labs shares rise over 4% after Q4 results. Why Morgan Stanley forecasts 67% upside

Pine Labs shares gained as much as 4.5% to their day’s high of Rs 152.80 on the BSE on Tuesday after it reported a consolidated net profit of Rs 59 crore for the quarter ended March, compared with a net loss of Rs 29 crore in the same period last year, marking a turnaround in profitability.

Revenue from operations during Q4FY26 rose 17% year-on-year to Rs 701 crore from Rs 599 crore reported in the corresponding quarter of the previous financial year. On a sequential basis, profit after tax increased 40% from Rs 42 crore posted in Q3FY26, even as revenue declined nearly 6% from Rs 744 crore recorded in the October-December quarter.

For the full financial year FY26, the company posted revenue of Rs 2,711 crore compared with Rs 2,274 crore in FY25, reflecting a growth of 19%. The company also swung to a profit of Rs 113 crore during the year, against a loss of Rs 145 crore in the previous financial year.

Pine Labs share price: Buy, sell, hold?

Morgan Stanley has maintained its “Equal-weight” rating on Pine Labs with a target price of Rs 245, an upside of 67%. The brokerage noted that Q4 revenue growth of 17% year-on-year came in around 3% below consensus estimates, while adjusted EBITDA rose 73% year-on-year but was marginally below expectations.

Management has guided for medium-term revenue growth of 21-23.5%. Morgan Stanley highlighted that the issuing and acquiring business continued to post strong growth of 24% year-on-year, while flow, affordability and transaction processing GTV increased 44% year-on-year.
The brokerage also pointed to a sharp improvement in operating leverage and cash flow conversion during FY26. However, it noted that the company’s international business was affected by geopolitical tensions in the Middle East. Net cash stood at Rs 24.5 billion at the end of March 2026.
Pine Labs shares are down 24% in the last 1 month and about 36% since the beginning of the year. The fintech company made a strong debut on the BSE on November 14,, listing at Rs 242 per share, a 9.5% premium over its IPO price of Rs 221.
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