PB Fintech shares surge 5% after Q2 profit more than doubles on strong insurance growth

PB Fintech Shares Surge 5% After Q2 Profit More Than Doubles on Strong Insurance Growth

PB Fintech’s Remarkable Q2 Performance

– PB Fintech, the parent company of Policybazaar and Paisabazaar, experienced a significant 165% year-on-year (YoY) surge in consolidated net profit, reaching Rs 135 crore for Q2 FY26. This growth is largely attributed to robust performance in its insurance division and enhanced operational efficiency.
– On Thursday, shares climbed by 5%, hitting a day’s high of Rs 1,805 per share on the NSE.

Key Highlights of Q2 Results

– Operating Revenue: Increased by 38% YoY to Rs 1,614 crore, with insurance revenue specifically growing by 36%.
– Adjusted EBITDA: Surged by 180% to Rs 156 crore, with profit margins doubling from 5% to 10%.
– Insurance Premiums: Total premiums climbed 40% YoY to Rs 7,605 crore, indicating a quarterly run rate of Rs 30,420 crore.
– Core Online Premiums: Grew by 34%.
– New Protection Business: Comprising health and term insurance, rose by 44%, with health insurance seeing a remarkable 60% YoY increase.

Increasing Renewal Revenue

– Renewal revenue, a critical measure of long-term profitability, rose 39% YoY to an annualized run rate of Rs 774 crore.
– Quarterly renewal revenue in insurance reached Rs 758 crore, compared to Rs 516 crore the previous year.

Performance of the Credit Marketplace

– Paisabazaar: Reported a 22% YoY decline in revenue to Rs 106 crore due to subdued demand for unsecured loans, though a sequential increase of 4% suggests potential recovery.
– Total disbursals for the quarter were Rs 2,280 crore.

New Growth Engines and Profitability Improvements

– New Initiatives: Revenue from initiatives like PB Partners, the insurance agent aggregator, rose 61% YoY. This segment now provides about 5% of total revenue.
– International Performance: The UAE insurance arm maintained strong growth, with premiums up 64% YoY, achieving profitability for the third consecutive quarter.
– Profit Margins Growth: PB Fintech’s PAT margin expanded to 8%, compared to 4% the previous year, reflecting better operating efficiency.

Customer Satisfaction

– The company achieved a Customer Satisfaction (CSAT) score of 90.5% in insurance, highlighting its ongoing commitment to client service.

In conclusion, PB Fintech’s recent results underscore the company’s strong position in the rapidly growing insurance market and its commitment to improving operational efficiency. While shares have faced a downturn of nearly 19% in 2025, the substantial year-on-year growth in profit and revenue signals a promising outlook for investors in the online insurance sector.