The brokerage highlighted Pine Labs' leadership in merchant payments and its high-margin value-added businesses. It also expects strong earnings growth.

Pine Labs has more than 20 lakh point-of-sale (POS) terminals. The brokerage estimates the company has a 17% share of the overall POS terminal market and more than 60% share among enterprise merchants.

The brokerage also highlighted Pine Labs' affordability solutions, including POS financing, as an important value-added business.

Pine Labs processes around 85% of offline white-goods buy-now-pay-later (BNPL) transactions. The company works with more than 450 brands and over 40 financial institutions.

Pine Labs is a technology company focused on digitising commerce through digital payments and issuing solutions for merchants, consumer brands, enterprises and financial institutions.

The company's consolidated revenue grew 20% YoY to Rs 737 crore, while profit after tax increased fourfold to Rs 20 crore from Rs 5 crore in Q1 FY26. Profit before tax stood at Rs 38 crore, compared with a loss of Rs 5 crore in the year-ago quarter.