Synopsis: This article outlines how some companies are outpacing its peers in the fintech industry, driven by innovation and plans for scaling through International expansion plans, diversifying product portfolio and model and more.
According to sources, India’s fintech sector is projected to grow at a 31 percent CAGR between 2025 and 2029, driven by strong digital public infrastructure like UPI, Aadhaar and the Account Aggregator framework. The industry is shifting from a phase of high-velocity growth to one focused on institutional trust, compliance and long-term scalability.
Investor behaviour is also evolving, with about 60 percent of H1 2025 funding going into lending and payments segments, showcasing investors’ confidence. KPMG’s report highlights emerging opportunities like real-world asset tokenisation and private credit, which underline a future where compliance, transparency and risk management anchor sustainable growth.
India’s fintech leaders are entering a more disciplined growth phase—scaling payments, deepening credit penetration, and expanding internationally while improving profitability. Paytm, Infibeam Avenues, and Pine Labs stand out with clear execution roadmaps, operating leverage, and balance-sheet strength, positioning them well for sustained, high-quality growth over the medium term.
Here is the list of Three Fintech stocks with their outlooks
One 97 Communications Ltd (PAYTM)
Incorporated in 2000, One 97 Communications Ltd is India’s leading digital ecosystem for consumers as well as merchants. Paytm pioneered India’s digital payments and today empowers over 44 million merchants and 300 million users. With expanding financial services and everyday use cases, it aims to bring 500 million underserved Indians into the formal economy.
With the market capitalization of Rs. 83,980 crore, One 97 Communications Ltd’s share on Wednesday closed for Rs. 1312.75 per share, up around 2.44 percent from its previous day’s close price of Rs. 1281.50 per share. It has delivered a return of 52.26 percent over a period of one year.
Now, the details of how Paytm is sustaining the leadership in the sector, AI integration in business, omnichannel with legal rights to grow and expansion plans are as follows:
What has sustained Paytm’s leadership: payment processing margins in Q2 were comfortably above the guided 3bps margins, with GMV (Gross Merchandise Value) growing by 27 percent to Rs 5.67 Lakh crore on account of higher growth of credit card on UPI and affordability offerings (such as EMI). With merchant subscriptions at 1.37 Cr, an increase of 25 lakh YoY, as the company redeployed refurbished devices from inactive merchants to new merchants, resulting in higher active merchants and lower capex.
The Consistent growth in Monthly Transacting Users (MTU) reached 7.5 Cr, with signs of user growth and retention, resulting in consistent market share gains, due to their product-led growth strategy and now focus on AI feature integration. This all accompanied by the company’s Distribution of financial services revenue, which increased by 63% YoY to Rs 611 crore, driven by growth in merchant loan distribution, followed by small segments like consumer credit and Equity broking. In addition to this, the company is looking to add Insurance as one of the segments.
AI as a big revenue driver: It has accelerated the company’s cost optimisation, and now they are considering it as a Revenue line item. The firm is planning to sell(cross-sell) AI infrastructure and “product agents” to their existing merchant base, and they expect these AI services to eventually form a specific “Cloud“ business segment within the next year, catering to small merchants, medium-sized merchants, and large-sized merchants.
Management views AI as a core building block of Paytm’s next phase of growth. While it is already helping lower costs, the bigger opportunity lies ahead as Paytm expands its AI infrastructure and real-world use cases. This shift is expected to reshape how the platform operates, innovates, and creates long-term value for investors.
The “Omni-channel” Advantage: The company’s subsidiary, PPSL, received approval from the GOI, Ministry of Finance, to resume onboarding of new online merchants, and the board has approved the transfer of offline business to the same subsidiary. This means everything will be under one roof, making operations smoother and more efficient.
Management highlighted that Paytm is now fully positioned as an omni-channel payments platform, allowing merchants to manage online and offline payments through a single, unified dashboard. Regulatory alignment across licences further strengthens this setup. With capabilities spanning QR, Soundbox, POS, and online payments, Paytm believes it offers the most comprehensive merchant solution in the market, unlike peers that operate in isolated segments.
It has started International expansion with an advanced technology stack of merchant payments and financial services using two Business models: Partner-operated, which includes licensing tech and devices with a revenue share. Secondly, Paytm operated business with attractive payment margins, a large proven profit pool and moderate operational overheads, with meaningful contribution expected in 2–3 years
Financial performance: Operating revenue grew by 24 percent YoY to Rs. 2,061 crore, led by an increase in subscription merchants, higher payments GMV, and growth in the distribution of financial services. EBITDA improved to Rs. 142 crore (margin of 7 percent), on account of revenue growth and operating leverage, and PAT improved to Rs. 211 crore, excluding a one-time payment of loan to the firm’s JV. The company also holds Rs. 13,068 crore cash balance, giving ample room to invest in growth.
Infibeam Avenues
India’s first listed fintech company and a Payment infrastructure company that offers omni-channel and full-stack B2B Digital Payments solutions, enterprise eCommerce Software Platforms and Lending Solutions; with two decades of experience, PAN India Presence with global footprint expanded to UAE and more.
With the market capitalization of Rs 5,399 crore, Infibeam Avenues’ share on Wednesday closed at Rs 15.53 per share, up around 0.98 percent from its previous day’s close price of Rs 15.38 per share. It has delivered a negative return of 25 percent over a period of one year.
The company expects to close FY26 at the higher end of management guidance range, supported by momentum across both fintech and AI-led businesses. With Clear FY26 guidance: gross revenue Rs. 5,000–5,500 crore, net revenue Rs. 540–600 crore, EBITDA Rs. 325–350 crore, PAT Rs. 210–220 crore.
Strong payments engine: total payment volume (TPV) is scaling rapidly with Q2 growth of 33 percent to Rs. 1.17 trillion, with 57 percent contribution alone from credit cards. Domestically, the company has observed robust merchant onboarding and TPV growth supported by favourable card mix and a vertical expansion across travel, entertainment, utilities, recharges and services.
The payment engine is supported by the company’s long-term vision to build India’s most trusted AI fintech infrastructure, led by its flagship brand CCAvenue, for merchant payment, and its investments in Phronetic.AI, the firm’s dedicated artificial intelligence arm. Accompanied by RediffPay, a UPI-enabled platform for consumer-side payment, the firm is looking forward to making more investments of Rs. 500 crore to Rs. 700 crores.
International expansion: With the approval received from IFSCA for its subsidiary IA Fintech IFSC Private Limited to operate as a payment service provider at the GIFT-IFSC, the license includes cross-border money transfer, escrow services and merchant acquiring.
Internationally, the firm’s operations in the UAE and Saudi Arabia are scaling rapidly, processing billions of dirhams annually, with Oman set to launch next. They expect international payments to contribute double-digit net revenue within the next 12 months to 18 months. As they target 12-15 percent international contribution to Payment’s Net Revenue by FY28.
Financial performance and guidance: gross revenue on a consolidated basis went to Rs. 1,965 crores, which is the highest ever in the history of the company, which is up by 93% year-on-year, which is driven by higher TPV and Rediff’s performance. Accompanied by Net profit growth of 44 percent YoY to Rs 68 crore in Q2 FY26, resulting in an EPS of Rs 0.24 per share, as the shares go on trade at P/E of 22.7, below the average industry with a debt-free status.
Pine Labs Ltd
Incorporated in 1998, Pine Labs is a leading Indian merchant commerce platform that provides point-of-sale (POS) solutions, payment processing, and merchant financial services. Pine Labs empowers businesses of all sizes, from small retailers to large enterprises, with digital payment technologies and value-added services.
With the market capitalization of Rs 25,864.93 crore, Pine Labs Ltd’s share on Wednesday closed at Rs 226.65 per share, up around 5.27 percent from its previous day’s close price of Rs 215.30 per share. It has delivered a negative return of 10.34 percent since its IPO this year.
Financial guidance: expectation of continued operating leverage, with 50-55 percent of incremental contribution margin flowing to adjusted EBITDA. And the company is looking forward to its strong Q3 and Q4 for better performance. As these scalable, tech-led businesses compound and fixed costs are spread over a larger base, Pine Labs expects margin expansion to be sustainable alongside the growth trajectory
Transition to high-margin business: Around 29 percent and 71 percent of revenue comes from SaaS and tech-based services. Going forward a strategic shift towards a higher proportion of software and platform revenues, and lower hardware sales will result in higher contribution margins.
Growth Outlook: Management reiterated a 20 to 25 percent growth trajectory in the near-to-medium term, with value-added services, issuing, and acquiring businesses delivering around 30 percent growth. While POS is expected to grow at a steady 15–18%, it primarily serves as a monetisation touchpoint for higher-margin value-added and affordability services, enabling the company to scale revenues efficiently without incurring significant new customer acquisition costs.
Three core engines: First one: Issuing, affordability and online payments businesses, which continue to outpace growth in the in-store payments business, in line with its growth strategies.Second: Digital first affordability suite offering EMIs, trade-ins, insurance, and assured buyback programs to boost conversions and drive higher consumption. Third (Online payments) – rapidly growing Platform Gross Transaction Value about $ 48+ billion in Q2, up by 92 percent YoY and the number of merchants grew by 29 percent to 1Mn+
Its International business: is also seeing a lot of traction, where Pinelabs earn in dollars for almost every transaction that they do across Southeast Asia, Australia, the UAE, and the US, continuing its growth momentum, registering a year-on-year growth of close to 30 percent.
Pine Labs’ issuing business saw robust international growth of 35 percent YoY, fueled by key wins like Woolworths in Australia, Al-Futtaim Group in the UAE, Capital Land in Southeast Asia, and 18 global airlines using its wallet solutions. The company remains optimistic about scaling these proven use cases across markets.
Financial performance: Profitable scale: Q2 FY26 revenue from operations Rs. 650 crore, up 18 percent YoY with adjusted EBITDA growing 62 percent to Rs. 122 crore with margin expanding up to 19 percent, and net profit of Rs. 6 crore from a loss of Rs. 32 Crores in the last year. Contribution Margin grew 21 percent YoY to Rs. 497 crore and generated a strong positive operating cash flow of Rs. 241 crore.
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