PB Fintech’s Shares Hit Fresh Low Of ₹928.1, Down 48% Since IRDAI’s Proposed Insurance Overhaul

Shares of insurtech major PB Fintech hit a fresh 52-week low today, plunging about 8% to ₹926 apiece on the BSE. The stock closed the day’s trading session 7.19% lower at ₹928.10 apiece on the BSE.

The company’s stock is down 48% since September 23, since the IRDAI floated its consultation paper to overhaul the insurance distribution industry

Its market capitalisation stood at ₹42,948.08 Cr ($4.53 Bn). PB Fintech commanded a market cap of $9.07 Bn at the end of the first week of September, over twice of its market cap now.

The dip today comes after the company’s quarterly disclosures last Friday. PB Fintech’s consolidated net profit rose 42.5% YoY to ₹192.4 Cr in Q2 FY27, compared with ₹135 Cr in the year-ago quarter. Sequentially, profit increased 18% from ₹163 Cr in Q1 FY27.

Operating revenue grew nearly 35% YoY to ₹2,177.7 Cr, from ₹1,613.6 Cr in Q2 FY26. It rose 15% sequentially from ₹1,888.3 Cr in the June quarter. While total income stood at ₹2,277.6 Cr, total expenses increased 32.6% YoY to ₹2,067.7 Cr.

The company’s core online business, which includes Policybazaar and Paisabazaar, generated ₹1,336 Cr in revenue, up 39.5% YoY. Revenue from new initiatives rose 28% YoY to ₹842 Cr. Adjusted EBITDA increased 39% to ₹216 Cr, while adjusted EBITDA margin remained flat YoY at 10%

Brokerages have given mixed outlooks for the stock post the disclosures. HSBC and Dolat Capital retained their ‘Hold’ and ‘Reduce’ ratings, respectively, while Bernstein maintained its ‘Outperform’ call. 

HSBC kept its target price at ₹1,100 but cut its FY27-29 earnings per share (EPS) estimates by 2-4%, citing higher operating costs and regulatory uncertainty. Bernstein retained its target price of ₹1,085, citing 38% YoY growth in consolidated premiums and 22% growth in core credit disbursements.

Dolat Capital retained its ‘Reduce’ rating but cut its target price to ₹1,090 from ₹1,150. The brokerage said Q2 revenue rose 35% YoY to ₹2,177.7 Cr but was 4.2% below its estimate. EBIT also missed estimates by 32.7%, mainly due to higher advertising and other expenses.

It flagged concerns that proposed IRDAI rules could reduce insurance distribution payouts and affect PB Fintech’s PoSP model. Dolat cut its FY27-FY29 EPS estimates by 3%, 3.9% and 4.1%, respectively, due to uncertainty over the impact of the proposed rules.

PB Fintech’s Future Outlook

PB Fintech has said its PoSP insurance distribution business may need to be restructured if the IRDAI’s proposed rules are adopted in their current form.

During the earnings call, chairman and CEO Yashish Dahiya said the proposals could limit the scope of the existing PoSP model. The company will wait for the final regulations before deciding on its next steps.

Dahiya said PB Fintech was in informal discussions with the regulator about other options, which it would announce only after receiving certain regulatory approval. He added that the proposals could open up opportunities to offer non-insurance services, including potentially charging for claims support that Policybazaar currently provides for free, subject to the final rules.

PB Fintech has begun reducing costs, with hiring in October at a “very, very small fraction” of earlier levels, the management said. The company also plans to move existing executives into newer businesses and use AI to improve efficiency. Advertising and promotion expenses rose 59% YoY to ₹447 Cr in Q2, outpacing revenue growth.

Core credit disbursements rose 22% YoY to ₹2,791 Cr but were broadly flat sequentially. Management said it had focused on adding lending partners before pursuing further growth.

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