PB Fintech reported a strong Q2 FY26, with consolidated revenue up 38% YoY to ₹1,614 Cr. Core insurance revenue grew 36% YoY, while consolidated PAT grew 165% YoY to ₹135 Cr. The company is focused on growth, with new initiatives showing positive momentum. Management expects adjusted EBITDA to be close to zero for new initiatives in the next fiscal year. The company aims for a 3% PAT margin by FY30, supported by a continued focus on customer onboarding and claim support services.
Financial Performance
PB Fintech showcased robust growth in Q2 FY26:
- Total premium reached ₹7,605 Cr, a 40% YoY increase and 15% QoQ growth.
- Consolidated revenue grew by 38% YoY to ₹1,614 Cr.
- Core Insurance revenue increased by 36% YoY.
- Consolidated PAT grew by 165% YoY, reaching ₹135 Cr, representing a margin of 8%.
Segment Highlights
Key takeaways from PB Fintech’s business segments:
- The Policybazaar insurance core revenue grew 47% YoY.
- Quarterly insurance renewals revenue reached an ARR of ₹758 Cr, up from ₹516 Cr in Q2 of the previous year.
- Core Credit revenue was down 22% YoY but up 4% QoQ, indicating a bottoming out.
- PB Partners, the agent aggregator platform, reported revenue growth of 61% YoY.
Strategic Initiatives
PB Fintech is focused on several strategic initiatives to drive future growth:
- Improving customer onboarding and claim support services. Insurance CSAT is consistently above 90%.
- Expanding PB Partners into Tier 4 and Tier 5 towns, with over 380K advisors.
- Leveraging the cross-border situation in the UAE, with insurance premium growth of 64% YoY.
- Exploring new ventures such as Pensionbazaar and PB Money to provide holistic financial solutions.
Future Outlook
Management provided insights into the company’s future outlook:
- Aims to achieve a PAT margin of approximately 3% as a percentage of premium by FY30.
- Expects the PoSP (Point of Sale Person) business to reach a point where future growth rates stabilize.
- Anticipates that adjusted EBITDA for new initiatives should be very close to zero in the next fiscal year.
- Focuses on achieving ₹1 Tn in premium, with profitability as a secondary outcome.
EBITDA and Contribution Margins
- Adj. EBITDA margins for New initiatives have improved from -12% to -4%, with a 5% Contribution margin.
Source: BSE