PB Fintech Limited

PB Fintech reported a robust Q4 FY26, with overall premium growing 42% year-on-year to almost ₹30,000 Cr. This growth was significantly driven by new protection premium, which surged by 57% YoY. The company achieved a Profit After Tax (PAT) of ₹670 Cr, representing 2.2% of its premium, and consolidated operating revenues for the full year grew 37% to ₹6,794 Cr. For the quarter, operating revenue was approximately ₹2,000 Cr, indicating strong quarterly performance.

Paisabazaar achieved EBITDA positivity on an operating basis in Q4 FY26, with management expecting it to be 'significantly positive' next year. The platform is transitioning from a one-time^📎 origination model to an engagement platform, leveraging its 5.8 Cr consumers for both credit and savings products. Credit revenue was up 7% YoY, and lending disbursal increased by 11% YoY. The company also strategically discontinued its wholesale POSP business within PB Connect due to a lack of strategic value and profitability, which had been losing approximately ₹0.5 Cr a month.

The strong growth in new insurance premium (59% YoY in Q4, net of savings) is attributed to a superior product proposition, including modular products and improved claims experience, which has increased customer and advisor confidence. Health insurance continued its strong performance, growing 68% for the full year, while term insurance is rapidly catching up with 57% growth. The company emphasizes its unique ability to attract and service the 67% of customers who typically do not claim, ensuring affordability for the 5% of lives with high claims ratios.

PB Fintech is leveraging AI primarily to enhance the productivity of its sales and customer service teams and improve the overall customer experience, rather than focusing on immediate cost or margin optimization. Management believes AI's most critical long-term application in the insurance industry will be in risk management, including underwriting and claims processing. This approach aims to identify high-risk customers more effectively and ensure appropriate pricing, ultimately building stronger capabilities.

PB Health, a separate entity where PB Fintech holds a 26-28% stake, is actively expanding its hospital network. It currently operates one acquired hospital generating ₹20-30 Cr profit and ₹150 Cr revenue annually, with another set to go live in the coming weeks in Central Gurugram. Further expansion is planned with another hospital in Gurgaon and one in Delhi. Additionally, PB Health is developing a preferred network of approximately 500 hospitals (PB Care+) to offer preferential treatment and enhanced services to its customers.

The PB Partners network has grown to 450,000 advisors, covering 99% of PIN codes in the country, with 83% of premium now originating from small agents. Management plans to be 'very aggressive' in the POSP segment in the coming year, recognizing it as a significant opportunity for deeper penetration. The UAE business also demonstrated strong growth, increasing 54% year-on-year, building on its strengths in cross-border health and life insurance products, as well as claims assurance programs.