Pine Labs ramps up its AI initiatives with a ₹24 crore investment, driving automation, launching AI-driven payment protocols, and achieving its first full-year profit, signalling a major shift in Indian fintech innovation.
Pine Labs has stepped up its artificial intelligence push, saying it invested about ₹24 crore in AI-led research and development in the financial year to March 2026, while using automation to sharpen operations and cut development delays. In its annual report, the fintech company said the spending supported upgrades to its technology stack, customer-facing automation and enterprise tools built around newer AI systems, including model context protocol and retrieval-augmented generation.
The company said the effort is already paying off. According to Pine Labs, internal automation reduced software testing cycles by more than 95%, lifted developer productivity by 25% and cut incident analysis time by 80%. It also said autonomous AI agents handled nearly 89% of new code changes over the past two quarters, modifying more than 1.5 million lines of code.
Beyond internal use, Pine Labs has started to commercialise its AI work. The company has launched P3P, an agentic payments protocol built on UPI that it describes as a compliance-first system in which buyer and seller agents can discover, negotiate and complete transactions within regulatory guardrails. Pine Labs has also introduced SignalIQ, a bank-statement analyser and underwriting engine that tracks UPI activity to help lenders assess financial stress; the company says it has processed more than 50,000 loan requests since launch.
The annual report also highlighted the company’s safeguards for AI use, including role-based permissions, audit trails, continuous monitoring and a central governance layer called Agentic HQ. Pine Labs said it has extended AI into cybersecurity work such as false-positive analysis, zero-day threat alerts, automated code scanning and vulnerability remediation. The push comes as the company reports stronger financial performance: it said it posted its first full-year profit in FY26, with consolidated net profit of ₹112.5 crore and operating revenue up 19% to ₹2,710.6 crore. That improvement followed a profitable June quarter, and the stock rose 3.84% in the latest session cited by Inc42.
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