PB Fintech Ltd, the parent of Policybazaar, saw its revenue grow in the second quarter ended September, aided by new insurance plans and renewals, and credit disbursals.
Consolidated revenue from operations of ₹1,614 crore in the quarter ended September, up 38% year-on-year and 20% sequentially, according to its exchange filing. The sequential growth, however, eased from a 33% jump to ₹1,348 crore in the April-June quarter.
Profit after tax stood at ₹135 crore, up 58% sequentially and 165% year-on-year, reflecting stronger operating leverage and improved contribution. The PAT margin improved to 8% in Q2 from 4% a year earlier. This is the second time since listing the PAT margin has been positive.
Total insurance premium stood at ₹7,605 crore in the September quarter, up 40% year-on-year and 15% quarter-on-quarter, driven by a 44% jump in online new protection business, with health insurance contributing about 60%.
The company’s core new insurance premium bucket, comprising first‑year premium buyers in health and term life, rose 39% year-on-year in Q2 FY26. The revenue is realized from Policybazaar’s commission take rate on the premiums collected.
GST fallout
The removal of goods and services tax (GST) on individual health and life insurance premiums is positive for consumers via lower prices and improved conversions. However, analysts such as Trudence Capital argued it could create headwinds for platforms like PB Fintech by prompting insurers to rejig commission structures after losing input tax credit (ITC), with potential impact on a large share of revenue.
According to PB Fintech co-founder and group chief executive officer Yashish Dahiya, demand has been “extremely surprising and positive” post the GST changes.
“We’ve seen demand stay very strong post the GST change, with record traffic and conversions in September; commissions are a nuanced conversation across insurers, regulators and consumers, and we’re engaging constructively with partners,” said Dahiya. “From next quarter, we’ll report premium figures excluding GST and restate the past for an apples‑to‑apples view,” he added.
PB Fintech’s savings policies that bundle investment features, including endowment and unit-linked plans, remained weak. Excluding this savings category, growth has held in the 35–45% range for ten consecutive quarters, the company said.
Renewal or trail revenue on a 12‑month rolling basis reached ₹774 crore, up from ₹556 crore a year ago, marking 39% growth, led by a 47% rise in the insurance segment. The company said renewals are pivotal to long-term profit. Analysts had pointed out earlier that renewals are low-cost yet high-margin, since marketing and customer acquisition spends are largely incurred on new business.
Total expenses stood at ₹1,558.8 crore in Q2, growing 17.9% sequentially and 28.4% year-on-year.
Employee benefits remained the largest cost head at ₹600 crore in Q2, up 7.2% QoQ and 18.2% over a year earlier. Advertising and promotion expenses were ₹280.1 crore, rising 10.6% QoQ and nearly flat year-on-year.
Other expenses surged 29.5% QoQ and 67% year-on-year to ₹592.5 crore in the second quarter. Network and internet costs stood at ₹43.1 crore, marginally higher than in the previous quarter and a 26% rise from the year-ago period.
PB Fintech’s new initiatives, including PB Partners, PB for Business, PB UAE and PB Connect, delivered ₹655 crore in revenue for Q2, up 61% year-on-year, with adjusted Ebitda margin improving to -4% from -12% and contribution at 5%.
Ebitda is earnings before interest, tax, depreciation and amortization, a measure of operating income. A negative Ebitda margin implies a company’s expenses are higher than its revenue.
PB Partners, the agent-aggregator platform within new initiatives, scaled to over 3.8 lakh advisors and broadened across lines of business, with a focus on smaller, higher-quality agents. The platform now operates in 19,000 pincodes, covering 99% of India’s pincodes, underpinning growth in tier 4 and 5 towns, the company said.
Paisabazaar, PB Fintech’s credit marketplace, reported ₹106 crore in credit revenue for Q2 FY26 from the core online business, alongside loan disbursals of ₹2,280 crore.
In the UAE business, Policybazaar’s insurance premium rose 64% year-on-year, with the mix tilting toward health and life, and differentiated by cross‑border health offerings and a claims‑assurance programme for motor insurance, the company said.
During the earnings call, Dahiya said that the company’s nascent bets, including PensionBazaar and PB Money, are still on the drawing board with negligible spending so far and are unlikely to move the needle on results for at least a year.
“PB Money has put customers’ investments in one view and is piloting savings products like bonds and deposits, but it’s very early,” said Santosh Agarwal, CEO, Paisabazaar.
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