PB Fintech Limited delivered exceptional Q1 FY27 results with net profit nearly doubling to ₹163 crore, representing a 92.4% increase from ₹85 crore in the corresponding quarter last year. The company's consolidated revenue from operations rose 40.1% year-on-year to ₹1,888.2 crore from ₹1,348 crore in the year-ago period. According to Motilal Oswal Financial Services, this strong performance was supported by strong momentum in fresh business and core online insurance take rate improved to 18.5% from 17.9% in Q1 FY26, resulting in core insurance revenue growth of 46% Y-o-Y. EBITDA increased to ₹139.1 crore from ₹34.2 crore a year earlier, while EBITDA margin expanded to 7.37% from 2.54%, as reported by Business Standard. PAT margin also improved to 9% in the April-June quarter from 6% in the corresponding quarter of FY26, demonstrating enhanced operational efficiency.
Despite the strong year-on-year growth, PB Fintech experienced sequential decline in both profit and revenue from the previous quarter. Net profit fell from ₹261 crore reported in the March quarter, while revenue slipped from ₹2,061 crore in the December quarter. This sequential decline suggests some moderation in the company's momentum from the previous fiscal year's strong performance. The quarter once again underscored PB Fintech's strong execution across its core businesses, though the debate has shifted beyond earnings with investors now weighing whether the company's sustained growth can continue to offset concerns around rich valuations and evolving regulatory risks.
PB Fintech's insurance business continued to deliver healthy growth during the June quarter, with total insurance premium excluding GST growing 41% year-on-year to ₹8,732 crore. The growth was driven by a 53% YoY jump in its core online new protection business, including strong growth in health and term insurance segments. New protection premium rose 53% YoY, while new health insurance premium grew 59%, marking the 13th consecutive quarter of growth above 34%. Core insurance revenue rose 46% Y-o-Y during the quarter, with core insurance renewal revenue reaching an annual recurring revenue run-rate of ₹999 crore, up from ₹673 crore in Q1 last year. Insurance take rates have crossed 18% in Q1 FY27, with contribution margins remaining healthy at 29% led by expansion in contribution margins of existing and new business segments, as noted by Nomura. Revenue from insurance broker services segment stood at ₹1,728.44 crore, reflecting a 45.6% YoY increase from ₹1,186.95 crore in the June FY26 quarter. Policy Bazaar continued to deliver volume growth above its guidance of 30%, driven by a GST exemption-led boost in term and health insurance, according to Motilal Oswal.
In the lending segment, total lending disbursals stood at ₹4,366 crore, while core credit disbursals grew 33% YoY to ₹2,776 crore, marking the fourth straight quarter of growth. The lending revenue came in at ₹694 crore, higher than the ₹514 crore posted in June 2025 quarter. Core credit revenue increased 25% year-on-year to ₹127 crore, with core credit disbursal and revenue having grown for four straight quarters. However, secured lending disbursals declined to ₹15.9 billion during the quarter. The company's diversified business model across insurance and lending continues to provide stable revenue streams. The company continues to witness recovery in unsecured lending and stable momentum in retail secured lending, as noted by Motilal Oswal.
PB Fintech shares jumped 3.3% to hit an intraday high of ₹1,673.90 on the NSE following the results announcement, with the stock trading 1.41% higher at ₹1,642.90 as of 11:38 AM. The share price has risen 2.2% in the last five trading days, 4% in the last one month and 9% over the past six months, though it has fallen 5% on a year-to-date basis. PB Fintech has a total market capitalisation of ₹75,932.86 crore as of August 6, 2026, according to data on the NSE. At an operational level, its adjusted EBITDA advanced 109% YoY to ₹186 crore in Q1 FY27, from ₹89 crore in the year-ago period, with EBITDA margin expanding by 300 basis points YoY to 10% from 7%. Motilal Oswal Financial Services has raised its FY27 and FY28 revenue estimates by 3% and 2% respectively, while increasing FY27 and FY8 profit estimates by 5% and 4% citing better operational efficiency. However, brokerage opinions remain divided, with Nomura maintaining Neutral with a target price of ₹1,590, implying a downside of almost 2%, and Motilal Oswal maintaining Neutral with a reduced target price of ₹1,820, still implying an upside of 12% from current market price. Key brokerage houses have raised concerns about the regulatory environment posing a risk, with Nomura highlighting that the fair price of PB Fintech could see a 30% hit in case the regulator decides to make long-term policies commissions back-ended, citing regulation as the biggest trigger for the stock in either direction.
