PB Fintech Q3FY26: PAT surges 165% to ₹189 Cr, Revenue up 37% YoY

PB Fintech Limited announced its financial results for the third quarter of FY2025-26, reporting a significant 165% year-on-year (YoY) increase in Profit After Tax (PAT) to ₹189 crore. The company's operating revenue saw a 37% YoY growth, reaching ₹1,771 crore. Total premium grew by 45% YoY, driven by new protection premiums which increased by 68% YoY, with health insurance premiums rising by 79% YoY. Lending disbursals also showed strong performance, up 84% YoY. Adjusted EBITDA grew by 154% YoY to ₹199 crore, with the margin improving from 6% to 11%. The company highlighted its strong position in the insurance market, emphasizing its ability to help customers at the point of claims, which contributes to positive public relations and growth. The core online insurance premium is up 44% YoY, and the core renewal trail revenue on a 12-month rolling basis stands at ₹841 crore. New initiatives are showing improved performance, with revenue growth of 41% YoY and adjusted EBITDA margin moving from -7% to -3%. The company anticipates that Paisabazaar will be profitable from here onwards, and new initiatives are expected to reach break-even or profitability. PB Partners, the agent aggregator platform, continues to consolidate its leadership and has seen accelerated growth. In the UAE, insurance premiums grew by 62% YoY, with health and life insurance now constituting over half of the premiums. The company is also exploring international expansion opportunities, with a board meeting scheduled for February 5th to discuss a potential Qualified Institutional Placement (QIP).

During the earnings call, management addressed questions regarding international market expansion, stating that Policybazaar is considered a highly evolved insurance distribution model globally and is observing profit-rich but innovation-lacking markets. They also discussed the transition to a Combined Operating Ratio (COR)-based model for health and term insurance, emphasizing it as a natural progression and a partnership approach with insurers, rather than a defensive move against commission regulations. The company reiterated its focus on consumer-centricity and efficiency in risk and disclosure capture, which drives market share gains. Management also clarified that commission structures are fungible within the Expense of Management (EoM) framework and that any benefits from reduced costs should be passed on to the consumer. Regarding capital allocation, management indicated that all businesses are generating money and that future investments, including potential acquisitions, would be EPS accretive and value-driven. They also highlighted the company's deep and wide expansion in India and the learnings from their UAE operations that could be applied to other markets.