PB Fintech Q2 FY26: Revenue +38% YoY, Profit +165% YoY on Strong Insurance Premium Growth
PB Fintech, the parent of Policybazaar and Paisabazaar, reported robust quarterly results for the quarter ended September 30, 2025. Operating revenue grew meaningfully, driven by higher insurance premiums and better performance in protection products. Net profit expanded sharply as the business scaled and operating efficiency improved. The quarter reflects sustained strength in online insurance distribution and a gradual recovery in credit and new initiatives.
*Key Highlights*
* Revenue from Operations: ₹1,613.5 crore in Q2 FY26: +38% YoY from ₹1,167.2 crore in Q2 FY25.
* Profit After Tax (PAT): ₹135 crore in Q2 FY26: +165% YoY from ₹50.7 crore in Q2 FY25.
* Sequential Growth: Revenue up ~20% QoQ and PAT up ~59% QoQ.
* Total Insurance Premium (ARR): ₹304 billion in Q2 FY26 (a high premium run-rate figure from company investor page).
* Insurance Policies Sold: ~59 million total policies sold cumulatively till Sep 2025, showing scale of the platform.
* Loan Disbursals (Credit Marketplace): ₹343 billion (annualised run rate).
* Credit Score Customers: ~54.8 million users in credit ecosystem.
*Revenue & Profit Analysis*
For Q2 FY26, PB Fintech reported ₹1,613.5 crore in operating revenue, a 38% increase over the same quarter last year. This growth was largely driven by strong performance in insurance brokerage (the core business) and higher insurance premium collections. Sequentially the company also grew ~20%, suggesting healthy momentum beyond year-ago base effects. Profit jumped more sharply: PAT rose 165% YoY to ₹135 crore, as the company scaled revenue and improved operating leverage. Margin improvements reflected not only higher volumes but also cost discipline in marketing and employee spending relative to revenue growth. This indicates that PB Fintech is now converting scale into more profitable operations, moving away from the earlier low-margin or loss phases typical of growth-stage fintech firms.
*Segment & Business Performance*
Insurance Broking (Policybazaar) remains the biggest revenue engine. Growth in insurance premium (up ~40% YoY) and protection verticals (like health & term plans) drove topline strength. The surge in insurance premium helped revenue and profit expand in Q2.
Credit Marketplace (Paisabazaar) also showed signs of recovery. Credit revenue was reported at ~₹106 crore and loan disbursals were strong (₹2,280 crore in credit disbursals for core online business per some reports), showing activity picking up in lending products within the PB ecosystem.
The PB Partners agent aggregator network expanded significantly, with presence across most of India’s pincodes. This expansion broadens reach and supports future revenue from both insurance and credit verticals.
*Cost & Efficiency Trends*
While company filings do not break down all expenses in detail, external filings indicate that employee costs and marketing expenses grew at a much slower pace than revenue, aiding margin expansion. This improved cost efficiency contributed to stronger EBITDA and PAT growth.
*Balance Sheet & Scale Metrics*
PB Fintech’s insurance premium run rate is ₹304 billion and loan disbursals run rate is ₹343 billion. These high run rates highlight the scale of policy sales and credit distribution the platform is generating. Credit score customer base of ~54.8 million underscores the depth of the company’s ecosystem in the financial-services market.
*Management Commentary & Outlook*
The company’s press release indicated broad-based growth across insurance protection products (health & term insurance) and improved contribution from renewal revenue streams. Management also highlighted the expansion of the agent network through PB Partners and stronger performance from Paisabazaar’s credit marketplace. These initiatives are aimed at diversifying revenue streams and improving customer engagement across financial products. Overall, the outlook is positive: the core insurance business remains strong, and newer initiatives show early signs of contributing more meaningfully to revenue.
*Valuation Outlook*
PB Fintech’s Q2 performance places it on a clearer path to profitability, which historically was a concern for many tech-led marketplaces. The +38% revenue growth and +165% profit increase suggest improving operational leverage. This means a company that is still growing its top line strongly while starting to deliver sustainable profits. However, valuation is viewed in the context of the company’s business model and risk profile:
* PB Fintech earns most of its revenue from insurance brokerage, which is a high-growth but competitive sector.
* The credit and Paisabazaar segment, while growing, has regulatory and credit risk elements.
* Profit margins are improving, but continued invest-to-grow strategy (e.g., marketing, new initiatives) can weigh on near-term margins.
*Conclusion*
PB Fintech’s Q2 FY26 results were strong and investor-friendly. Revenue grew ~38% YoY while profit expanded ~165% YoY, driven by a stronger insurance business and improving operating efficiency. Scale metrics like insurance premium run rate and large policy count reinforce the company’s leadership in online insurance. While new segments like credit and agent aggregator platforms are evolving, the core business continues to drive profitable growth. For long-term investors, the results reflect both growth and improving profitability, a combination that supports confidence, provided market conditions remain stable.
The image added is for representation purposes only
