PB Fintech up 3% after Q1; analysts lift FY27 estimates, see up to 12% gain

Policybazaar parent PB Fintech Ltd.’s share price surged over 3 per cent after the company reported its April-June quarter (Q1FY27) results. The fintech company reported a strong June quarter, with strong top-line growth and operational efficiency that drove profit after tax, brokerage firm Motilal Oswal Financial Services noted.

 

As of 09:26 AM, the company’s share price was trading 1.07 per cent higher at ₹1,639 apiece, meanwhile, Nifty 50 was trading 0.05 per cent higher at 24,637.35. At intraday, the stock surged 3.27 per cent to ₹1,673 apiece. 

 

PB Fintech reported 92.4 per cent year-on-year rise in consolidated net profit for the quarter ended June. The firm’s The company's net profit stood at ₹163 crore for Q1FY27, up from ₹85 crore in the year-ago period.

 

 

MOFSL noted that PB Fintech’s growth was supported by strong momentum in fresh business, the core online insurance take rate improved to 18.5 per cent (17.9 per cent in 1QFY26), resulting in core insurance revenue growth of 46 per cent Y-o-Y. Core online credit revenue grew 25 per cent Y-o-Y, maintaining a sequential growth trajectory.

 

The company’s revenue spiked 40.1 per cent year-on-year to ₹1,888.2 crore, compared with ₹1,348 crore in the same quarter last year. Similarly, earnings before interest, tax, depreciation and amortisation (Ebitda) increased to ₹139.1 crore from ₹34.2 crore a year ago. Ebitda margin surged to 7.37 per cent from 2.54 per cent.

 

The brokerage highlighted that revenue from new initiatives grew 35 per cent Y-o-Y to  ₹6.9 billion, backed by 42 per cent Y-o-Y growth in new initiative insurance premiums and improved insurance take rates on a Y-o-Y basis. This was offset by a decline in secured lending disbursals to  ₹15.9 billion.

 

Notably, the PolicyBazaar platform’s registered customer base grew to 158.9 million (111.6 million in Q1FY26), with transacting customers at 28.1 million (21.8 million in 1QFY26). The platform has sold 71.6 million policies to date. The PaisaBazaar platform witnessed 7.8 million transacting customers (6.5 million in Q1FY26), with 60.6 million credit scores accessed and 12.1 million transactions to date 91,000 credit cards were issued during the quarter.  Brokerage firm Nomura noted that the company's insurance platforms collectively reported a premium of ₹83.72bn, up 41 per cent Y-o-Y, supported by 39 per cent Y-o-Y growth in core insurance premiums. Core insurance premiums without savings grew by a healthy 48 per cent Y-o-Y. This implies that savings growth was behind in the core segment in 1QFY27.   "Given this shift in product mix, the take rate for the insurance platform stood at 18.5 per cent, an expansion of 140 basis point Q-o-Q and 232 basis point Y-o-Y. Insurance take rates have crossed 18 per cent in Q1FY27. Contribution margins have also been healthy at 29 per cent led by expansion in contribution margins of existing and new business segments," Nomura said. The brokerage maintained a Neutral rating with an unchanged target price of ₹1,590. 

 

Motilal Oswal Financial Services has raised its FY27 and FY28 revenue estimates by 3 per cent and 2 per cent, respectively, after PB Fintech’s strong Q1FY27 performance. The brokerage has also increased its FY27 and FY28 profit (PAT) estimates by 5 per cent and 4 per cent, citing better operational efficiency.

 

However, MOFSL said uncertainty around insurance commission regulations remains a key risk. It has maintained its ‘Neutral’ rating on the stock with a target price to ₹1,820.

 

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