PB Fintech share zooms 5% on robust Q2 insurance growth; buy, sell or hold?

PB Fintech share price, Q2 impact: Shares of PB Fintech, which owns and operates Policybazaar and Paisabazaar, were in demand on Thursday, October 30, 2025, with the scrip rising up to 4.64 per cent to hit an intraday high of ₹1,802.90 per share.

 

At 9:30 AM, PB Fintech share price was trading 3.85 per cent higher at ₹1,789.20 per share. In comparison, BSE Sensex was trading 0.15 per cent lower at 84,866.07 levels.

What triggered a sharp rally in PB Fintech?

 

PB Fintech shares rose after the company reported a strong September quarter (Q2FY26) performance, driven by robust growth in its insurance segment. 

 

The company’s operating revenue rose 38 per cent year-on-year (Y-o-Y) to ₹1,614 crore, while profit after tax (PAT) surged 165 per cent Y-o-Y to ₹135 crore, translating to a margin of 8 per cent. Adjusted Ebitda jumped 180 per cent Y-o-Y to ₹156 crore, with margins improving from 5 per cent to 10 per cent.

 

The total insurance premium for the quarter stood at ₹7,605 crore, up 40 per cent Y-o-Y and 15 per cent sequentially, led by a 44 per cent jump in new protection business – including health and term insurance – with health insurance premiums alone up 60 per cent. 

 

On an annualised basis, the total insurance premium reached ₹30,420 crore, reflecting a 40 per cent Y-o-Y rise, while core online insurance premium grew 34 per cent.

 

Renewal and trail revenue on a 12-month rolling basis came in at ₹774 crore, up 39 per cent Y-o-Y, led by a 47 per cent increase in the insurance segment.  ALSO READ | Coal India Q2 hit by weak volumes, high costs; brokerages split on outlook 

Quarterly insurance renewal revenue reached an annualised run rate (ARR) of ₹758 crore, up from ₹516 crore a year ago – a key contributor to long-term profit growth. Excluding the savings category, core new insurance premiums grew between 35 per cent and 45 per cent for the tenth consecutive quarter, the company said.

 

PB Fintech’s credit business, though still recovering, reported revenue of ₹106 crore and disbursals of ₹2,280 crore in its core online segment. Core credit revenue declined 22 per cent Y-o-Y but grew 4 per cent sequentially, indicating stabilisation. Customer satisfaction levels remained high, with insurance customer satisfaction (CSAT) steady at 90.5 per cent.

 

The company’s new initiatives segment also showed major improvement, with revenue up 61 per cent Y-o-Y and adjusted Ebitda margin improving from -12 per cent to -4 per cent, contributing 5 per cent to the total. 

 

Meanwhile, PB Partners, its agent aggregator platform, expanded to over 3.8 lakh advisors across 19,000 pin codes, covering 99 per cent of India. The platform saw strong traction in smaller towns, particularly Tier 4 and 5 locations, with a focus on quality advisors and diversified business lines.

 

In the UAE, PB Fintech’s insurance business grew 64 per cent Y-o-Y, driven by health and life insurance products and its cross-border health insurance and motor claims assurance offerings. The segment has been consistently profitable for three straight quarters.

Keeps growth engine running

 

Since its public listing in November 2021, PB Fintech’s revenue has grown at a compounded annual growth rate (CAGR) of 55 per cent, rising from ₹280 crore in Q2FY22 to ₹1,614 crore in Q2FY26. Over the same period, its PAT margin improved dramatically – from a loss of 73 per cent in Q2FY22 to a positive 8 per cent in Q2FY26 –  underscoring the company’s sharp turnaround and operational leverage.  ALSO READ | L&T's growth story intact, say analysts after Q2 show; buy, sell, or hold?

PB Fintech Stock: Should you buy, sell or hold?

PB Fintech’s September quarter results impressed with robust growth in its core insurance operations, but analysts at Nuvama remain cautious on valuations. 

 

The brokerage noted that core online protection new business premium (NBP) surged 44 per cent Y-o-Y in Q2FY26, led by a 60 per cent jump in the health segment. This offset continued pressure in the savings business, driving overall core online NBP growth of 18 per cent Y-o-Y.

 

Strong momentum in online renewals, which rose 51.5 per cent YoY, helped push core insurance revenue up 35 per cent Y-o-Y during the quarter. The company’s existing business adjusted Ebitda margin expanded sharply by 567 bps Y-o-Y to 19.1 per cent, lifting total adjusted Ebitda to ₹156 crore. 

 

Nuvama said PB Fintech continues to deliver solid gains in its core online protection business and remains on track to achieve breakeven in its new initiatives by FY27. Reflecting its improving profitability outlook, the brokerage raised its adjusted Ebitda estimates by 0.4 per cent, 5.8 per cent, and 7.5 per cent for FY26E, FY27E, and FY28E, respectively, and rolled forward its valuation to September 2027.

 

The revised target price now stands at ₹1,700 per share (up from ₹1,580 earlier). However, Nuvama retained its ‘Reduce’ rating amid elevated valuations despite the company’s strong execution and steady growth trajectory.