Pine Labs Share Price Gains 5% As UPI MDR Boosts Revenue Outlook
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Pine Labs shares touched ₹194.45 as UPI MDR rules offered potential revenue benefits, while Emkay raised its target to ₹230. Read more for details.
Pine Labs stock has been in focus as the market weighs what the proposed UPI Merchant Discount Rate (MDR) could mean for payment companies. The stock has gained 9% over the past week, 16% over one month, 24% over three months, and 18% over six months.
On Thursday, Pine Labs' share price climbed 5% to ₹194.45 during the session after the National Payments Corporation of India (NPCI) announced an MDR of 0.4% on eligible Person-to-Merchant (P2M) UPI transactions above ₹2,000. The new framework is scheduled to take effect from 15 October 2026.
At 11:21 AM, the share price was still up around 2% at ₹189.34.
How Could UPI MDR Benefit Pine Labs?
The new MDR could give payment companies a transaction-linked revenue stream. Pine Labs works with merchants on payment acceptance and acquiring services. This gives the company a direct link to the part of the UPI ecosystem that could see revenue from the new MDR.
Under the framework, the 0.4% MDR will apply to eligible P2M transactions above ₹2,000. Person-to-person payments and P2M transactions up to ₹2,000 will remain exempt. Small merchants receiving up to ₹1 lakh a month through UPI QR codes are also exempt.
Brokerages estimate that the new revenue stream could contribute around 20% to Pine Labs' earnings before interest and tax (EBIT) and profit before tax estimates. They also expect Pine Labs to retain the acquiring bank's 12-basis-point portion of the MDR. Based on a conservative realised take rate of 6 basis points, estimated FY28 UPI MDR revenue is ₹1.55 billion. Analysts also estimate that the discounted value of this revenue could add ₹51.5 billion to Pine Labs' valuation, or about ₹43 per share.
Pine Labs Holds 28th AGM
Pine Labs held its 28th Annual General Meeting on 16 September 2026 through video conferencing, with 101 members participating. At the AGM, shareholders adopted Pine Labs' audited standalone and consolidated accounts for FY2025-26. They also backed the reappointment of Kush Mehra as Whole-Time Director.
The meeting also saw shareholders approve B S R & Co. LLP as the company's statutory auditor again. Changes to the remuneration of Kush Mehra, Amrita Gangotra, Maninder Singh Juneja, and Smita Chandramani Kumar were approved as well.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
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