PB Fintech Surges Post Strong Q2 Results, Insurance Business Drives 165% Profit Growth

PB Fintech, the company behind Policybazaar and Paisabazaar, experienced a significant rally in its stock price, hitting an intraday high of ₹1,802.90 on Thursday. This surge followed the announcement of its strong September quarter (Q2FY26) financial performance. The company reported a 38% year-on-year (Y-o-Y) increase in operating revenue, reaching ₹1,614 crore, and a remarkable 165% jump in profit after tax (PAT) to ₹135 crore. This resulted in a healthy profit margin of 8%. Adjusted Ebitda also saw substantial growth, up 180% Y-o-Y to ₹156 crore, with margins improving to 10% from 5%.

The insurance segment was the key driver, with total insurance premiums growing 40% Y-o-Y to ₹7,605 crore. New protection business, including health and term insurance, grew by 44%, with health insurance premiums alone up by 60%. The company's credit business reported revenue of ₹106 crore and disbursals of ₹2,280 crore, showing signs of stabilization with a 4% sequential growth in core credit revenue.

PB Fintech's new initiatives and its agent aggregator platform, PB Partners, which now covers 99% of India, also showed positive development. Its international insurance business in the UAE also grew by 64% Y-o-Y and remained profitable.

Impact: This news has a significant positive impact on PB Fintech's stock, reflecting strong operational execution and market demand for its insurance products. The robust financial results and growth trajectory suggest a positive outlook for the company, potentially influencing investor sentiment towards fintech and insurance sectors in India. The analyst report from Nuvama, while acknowledging strong execution, maintains a 'Reduce' rating due to valuation concerns, setting a revised target price of ₹1,700, indicating a potential upside but with caution. Impact Rating: 7/10

Difficult Terms: Q2FY26: Refers to the second quarter of the financial year 2025-2026, typically from July to September. Y-o-Y: Year-on-Year, comparing a period to the same period in the previous year. PAT: Profit After Tax, the profit remaining after deducting all expenses, interest, and taxes. Ebitda: Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of a company's operating performance. ARR: Annualised Run Rate, a projection of the total revenue for a full year based on current performance. CAGR: Compounded Annual Growth Rate, the average annual growth rate of an investment over a specified period of time. NBP: New Business Premium, the premium collected on new insurance policies sold during a period. Bps: Basis Points, where 1 basis point is equal to 0.01% (1/100th of a percent).