PB Fintech falls 4% post Q3; analysts flag QIP, healthcare foray risks

PB Fintech, operator of Policybazaar, reported its Q3FY26 numbers on Monday, after market hours. At 10:53 AM, PB Fintech's share price was trading 2.53 per cent lower at ₹1,522.85 per share. In comparison, the BSE Sensex was up 2.74 per cent at 83,905.1. 

In the December quarter, PB Fintech posted 165 per cent year-on-year (Y-o-Y) growth in net profit to ₹189 crore from ₹71 crore in Q3 FY25. 

The operating revenue of the company rose by 37 per cent to ₹1,771 crore from ₹1,291.6 crore a year ago. Check detailed report here.

  The company also said there will be a meeting on February 5, 2026, to consider and approve a capital raise by issuing equity shares through a qualified institutions placement (QIP). The proceeds of the capital raised are proposed to be used for expansion through inorganic opportunities. The company added that it has not identified a specific target in this regard.  READ STOCK MARKET UPDATES TODAY LIVE

Brokerages’ view on PB Fintech Stock

Motilal Oswal Financial Services | Neutral | Target: ₹1,750 from ₹2,000

Motilal Oswal said PB Fintech delivered strong volume growth in Q3FY26, aided by a GST exemption-led boost in term and health insurance. The brokerage noted that robust momentum in term insurance, along with better operating efficiency, supported an improvement in profitability. 

It added that PB Fintech has a strong presence in two of India’s most underpenetrated financial services segments—insurance and credit—with added optionality from new initiatives that could provide long-term upside. Over FY25–FY28, it expects the company to deliver a revenue/Earnings before interest, tax, depreciation and amortisation (Ebitda)/ profit after tax (PAT) compound annual growth rate (CAGR) of 33 per cent/155 per cent/56 per cent, driven by a strengthening position in these markets. 

However, it said it has cut revenue estimates to reflect the impact of the goods and services tax (GST) exemption on premiums, though this was offset by improved cost efficiency, keeping PAT estimates unchanged. Citing the potential risk of commission caps, Motilal Oswal revised its target price.  ALSO READ | ICICI Prudential AMC gains 7%, hits new high; stock up 44% from IPO price

JM Financial Institutional Securities | Add | Target: ₹1,750 from ₹1,830

JM Financial said PB Fintech delivered a strong Q3FY26 performance, largely in line with expectations. The brokerage noted that Paisabazaar is showing signs of stabilisation, with management pivoting the platform toward a full-stack financial services model. Despite the overhang of potential commission cuts, JM Financial highlighted the unique value proposition Policybazaar offers its insurance partners. 

Additionally, the company has proposed a Qualified Institutional Placement (QIP) to fund international expansion. However, JM Financial cautioned that this, combined with the ongoing healthcare foray, could increase volatility and stretch management bandwidth. Consequently, the brokerage has lowered its target multiple to 43x FY28E Ebitda. 

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