PB Fintech Limited
Q2 FY26
Call date · October 29, 2025
1 · Management Commentary
Key Positives
- Total premium for the quarter at ₹7,605 Cr, up 40% YoY and 15% QoQ, led by strong growth in online protection (44% YoY) and Health (60% YoY).
- Consolidated revenue grew 38% YoY to ₹1,614 Cr; Core Insurance revenue up 36% YoY.
- Policybazaar insurance Core revenue grew 47% YoY; insurance renewals revenue ARR at ₹758 Cr, up from ₹516 Cr YoY.
- Renewal trail revenue (12-month rolling) at ₹774 Cr.
- PB Partners (PoSP) platform now has over 380K advisors, with strong growth from Tier 4 and 5 towns.
- UAE insurance premium grew 64% YoY; UAE business profitable for 3 consecutive quarters.
- Consolidated PAT grew 2.65x (165% YoY) to ₹135 Cr; PAT margin improved from 4% to 8%.
Key Negatives
- Core Credit revenue down 22% YoY, though it has bottomed out with 4% QoQ growth.
- Savings segment continues to be stressed, with high base effect from Q2 last year.
- Fresh Health business continues to be loss-making at the Contribution level.
Forward Guidance
- Capex plans: Not specifically disclosed.
- New products/segments: Continued focus on narrow network Health policies (currently 15–20% share), expansion of Pensionbazaar and PB Money (both at drawing board stage, no major investments expected for at least a year).
- Expected client wins/losses: Not specifically disclosed; constructive dialogues with insurance partners post-GST changes.
- Revenue/margin outlook: Management reiterates focus on growth over margins; expects PAT as % of premium to reach ~3% by FY30; New initiatives (PoSP, Corporate, UAE) expected to be at or near breakeven by FY27.
- Other strategic initiatives: Continued push into Tier 4/5 towns, hybrid distribution model expansion to next 15–20 cities, ongoing investments in technology and customer experience, and focus on increasing renewal rates and persistency.
2 · Q&A Highlights
Q 1 (GST Impact & Commissions): What has been the impact of GST changes on demand and distributor commissions?
A (Management):
• Demand has been strong, with record days on 5th and 22nd September; GST changes have increased dialogue and interest in Health and Term insurance.
• Constructive discussions with insurers on commissions; focus is on win-win outcomes for consumers, insurers, and Policybazaar.
Q 2 (Margins & Profitability): Is the improvement in EBITDA and Contribution margins sustainable?
A (Management):
• Margin movements are not indicative of structural change; focus remains on growth, and quarterly margin shifts are often due to timing of revenue/expenses.
Q 3 (New Initiatives – PB Money & Pensionbazaar): What is the status and investment outlook for PB Money and Pensionbazaar?
A (Management):
• Both are at early/drawing board stage; minimal investments (<$0.5 million); no significant results or losses expected for at least a year.
Q 4 (Cross-sell/Upsell Opportunity): Is there an opportunity to cross-sell or upsell due to GST exemption on renewals?
A (Management):
• Primary focus is on increasing renewal rates; cross-sell/upsell is secondary but efforts are ongoing, especially in Term insurance to increase sum assured.
Q 5 (Narrow Network Health Policies): Have narrow network Health policies been launched and what is their share?
A (Management):
• Preferred/narrow network policies launched with several partners; currently 15–20% share in Health business, expected to grow.
Q 6 (PoSP & New Initiatives Profitability): What is the profitability outlook for PoSP and New Initiatives?
A (Management):
• PoSP Contribution margin at 1%; most of New Initiatives’ CM (currently 5%) comes from UAE business; PoSP and Corporate expected to be near breakeven by FY27.
Q 7 (Core Credit & Savings): What is the outlook for Core Credit and Savings segments?
A (Management):
• Core Credit revenue has bottomed out; QoQ growth seen. Savings segment expected to recover as base effect wanes; hybrid distribution model being expanded.
Q 8 (Cost Structure & Indirect Costs): How should investors view the growth in fixed/indirect costs?
A (Management):
• Indirect costs expected to grow at ~15% YoY, roughly half the topline growth rate; focus remains on growth, with cost control if growth targets are not met.
3 · Other Key Numbers
- Total premium for the quarter: ₹7,605 Cr
- Consolidated revenue: ₹1,614 Cr
- Core Insurance revenue growth: 36% YoY
- Core Credit revenue: ₹106 Cr (down 22% YoY, up 4% QoQ)
- Core Credit disbursals: ₹2,280 Cr
- Renewal trail revenue (12-month rolling): ₹774 Cr
- Policybazaar insurance renewals revenue ARR: ₹758 Cr (up from ₹516 Cr YoY)
- PB Partners (PoSP) advisors: 380,000+
- PB Partners premium: ₹1,700 Cr
- UAE premium: ₹415 Cr
- Corporate premium: ₹230 Cr
- New Initiatives revenue growth: 61% YoY
- New Initiatives Contribution margin: 5% (PoSP at 1%, UAE is main contributor)
- PB Connect revenue: ₹66 Cr (up 53% QoQ)
- Insurance CSAT: Consistently above 90%
- Hybrid model share of new business: ~25%
- Consolidated PAT: ₹135 Cr (2.65x YoY)
- PAT margin: 8% (from 4% YoY)
- ESOP costs: Expected to remain similar; old scheme phases out by FY28
- Motor segment growth (including PB Partners): ~40%
- Health renewal growth: ~50%
- PoSP, Corporate, UAE renewal premiums: PB Partners: ₹180 Cr; UAE: ₹110 Cr; Corporate: ₹140 Cr
- PB Partners business lines: Present in 19k+ PIN codes
- PB Partners Contribution margin: 1%
- New Initiatives Contribution as % of total: ~7.5%
- Fixed/indirect cost growth: ~15% YoY
- Savings segment: Q4 last year was 20% below Q2; expected to recover
All figures as stated in the call. Where not disclosed, marked as such.