PB Fintech shares surge over 5% after profit nearly triples in September quarter

Shares of PB Fintech, the country's leading online platform for insurance and lending products, rose as much as 5.25% to hit an intraday high of ₹1,814 on the National Stock Exchange (NSE) after the company reported strong set of earnings in the second quarter of current financial year.

PB Fintech, which operates Policybazaar and Paisabazaar online portals, post market hours on Wednesday reported net profit of ₹135 crore in the second quarter of current financial year, marking an increase of 165% from ₹51 crore in the same period last year.

Its revenue from operations in July-September period advanced 38% to ₹1,614 crore from ₹1,167 crore.

PB Fintech reported strong operational performance as it reported an operational profit of ₹98 crore against operational loss of ₹8 crore.

The company's total insurance premium for the quarter came in at ₹7,605 crore, up 40% year on year (YoY) and 15% quarter on quarter (QoQ), led by growth in online new protection business at 44% YoY, PB Fintech said in an exchange filing.

PB Fintech’s consolidated operating revenue grew 38% YoY to ₹1,614 crore for the quarter.

“Our renewal/trail revenue on a 12-month rolling basis is at ₹774 crore, up from ₹556 Cr last year same quarter, a 39% growth led by growth of 47% in the insurance segment. The quarterly insurance renewal revenue is at an ARR of ₹758 crore up from ₹516 core in Q2 last year. This is a key driver of long-term profit growth,” PB Fintech said.

Morgan Stanley (MS) said that the quarter’s contribution margin surprise, although, positive should not be extrapolated, as per management guidance. The global investment bank noted that core new premium growth trailed its estimates but remained healthy given the quarter’s context.

MS added that it awaits more clarity on the potential GST impact on PB Fintech’s revenues and profits, which could weigh on forward earnings visibility.

Jefferies said that PB Fintech’s Q2 performance was ahead of both Jefferies’ and consensus estimates, with premiums up 40% year-on-year, revenues up 38%, EBITDA surging 2.8 times, and net profit touching ₹130 crore.

Jefferies dismissed market concerns around possible commission rate cuts, noting that management is “less worried” as PB continues to attract high-quality new clients and sustain robust growth momentum. It added that valuations at 62 times FY27 EV/Adjusted EBITDA remain justified given PB’s high growth trajectory.

As of 11:22 am, PB Fintech shares traded 3.6% higher at ₹1,785, outperforming the NIFTY Midcap 50 index which was up 0.14%.