According to Motilal Oswal's research report dated May 06, 2026, the brokerage has recommended a Neutral rating on PB Fintech with a target price of ₹1,870. The target price is based on DCF valuation and implies an FY28E EV/EBITDA of 53x. The rating reflects the company's strong operational performance in Q4FY26, though the brokerage maintains a cautious stance on the stock.
As reported by Motilal Oswal, PB Fintech delivered robust Q4FY26 results with revenue of ₹20.6 billion, representing an 11% beat over estimates and 37% year-on-year growth. The revenue growth was primarily driven by online revenue of ₹12.5 billion (13% beat, 42% YoY growth) and new initiatives revenue of ₹8.1 billion (7% beat, 29% YoY growth). For the full fiscal year FY26, revenue grew 37% YoY to ₹67.9 billion.
According to the research report, PB Fintech demonstrated strong profitability improvements with adjusted EBITDA of ₹2.8 billion (22% beat, 87% YoY growth) and adjusted EBITDA margin of 13.6%, which exceeded the estimated 12.3%. The core online adjusted EBITDA margin improved to 25.1% from 21.7% in Q4FY25, while new initiatives margin turned positive at 4.2% compared to negative 6.3% in the previous quarter. For FY26, adjusted EBITDA margin stood at 10.7%.
As reported by Motilal Oswal, the brokerage has increased revenue estimates by 2%/3% for FY27/28 following the strong Q4FY26 performance. The improved cost efficiency has resulted in 2%/5% increase in PAT estimates for FY27/28. The company's online business continues to show strong momentum with improved margins, while the new initiatives segment is gradually moving towards profitability.
