PB Fintech Limited

PB Fintech reported a robust Q3 FY26 with total premium growing 45% YoY to ₹7,965 Cr, significantly boosted by new protection premium up 68% YoY and health premium up 79% YoY. Operating revenue increased 37% YoY to ₹1,771 Cr, while PAT surged 165% YoY to ₹189 Cr, demonstrating strong financial leverage. Adjusted EBITDA also grew 154% YoY to ₹199 Cr, with margins expanding from 6% to 11%.

Management emphasized that the company's sustained growth, particularly the acceleration of core new insurance premium (net of savings) to 56%, stems from its focus on customer trust, good disclosure, and strong claims support. This approach, cultivated over 18 years, creates a 'virtuous circle' where customers buy with confidence, leading to appropriate risk pricing and market share gains, even in a competitive environment. Policybazaar accounted for approximately 40% of the 40 lakh new lives added in retail health insurance in 2024-25.

PB Fintech is actively exploring international expansion, with a board meeting scheduled for February 5, 2026, to discuss a Qualified Institutional Placement (QIP) for this purpose. The company is evaluating markets in the Middle East, Southeast Asia, and Europe, seeking large, stable, and innovation-lacking markets where its evolved distribution model can add significant value. Management views this as an opportunity for EPS/PE accretive, value-driven acquisitions leveraging Indian talent, and aims to diversify both in India and internationally.

Paisabazaar is expanding its offerings beyond loan and card discovery to become a comprehensive financial platform managing both assets and liabilities. Following the successful launch of bonds and fixed deposits, which are gaining traction as 'pull products,' the company plans to add mutual funds to its portfolio within the next quarter. This strategy aims to improve customer lifetime value (LTV) and maximize engagement across the financial lifecycle, building on its existing credit revenue of ₹115 Cr and disbursals of ₹2,470 Cr.

PB Health is progressing with its strategy to build an integrated healthcare network focused on keeping people out of hospitals. This includes developing physical infrastructure, with a hospital in Noida and another small hospital in Gurgaon expected to go live within three months. The initiative leverages AI and tech to offer services like OPD, digital GP, and preventive care, aiming to route patients to the most appropriate care pathways and improve health outcomes, utilizing a network approach similar to PB Wheels' garage network.

Management views the Managing General Agent (MGA) framework, now allowed under the new Insurance Act, as the 'single most transformational move' for the insurance industry. By empowering distributors to handle underwriting and claims, MGAs can significantly drive insurance penetration and provide greater flexibility. PB Fintech believes its deep understanding of consumers and efficient processes position it well to benefit from this regulatory change, enhancing distribution rather than focusing on branding policies under its own name.

The company highlighted that its new initiatives are moving towards break-even or profitability, with adjusted EBITDA margin improving from -7% to -3% and a 6% contribution margin. The UAE business has been consistently profitable for the last four quarters, growing premiums by 62% YoY. Paisabazaar, despite a 4% YoY revenue decline, showed an 8% QoQ growth. The long-term growth in health insurance (60% for 12 quarters) is now driving renewal revenue growth, contributing to overall profitability, with insurance renewal revenue ARR at ₹863 Cr, up ₹325 Cr YoY.