PB Fintech, the parent of Policybazaar and Paisabazaar, reported a 165% jump in its profit after tax to Rs 135 crore in the quarter ended September 2025 (Q2FY26) from Rs 51 crore in the year-ago period on the back of robust growth in its core online insurance business and improvement in margins.
On a quarter-on-quarter (QoQ) basis, profit surged nearly 59% from Rs 85 crore.
The company clocked an operating revenue of Rs 1,614 crore in the second quarter of the ongoing fiscal year, marking a 38% increase from Rs 1,167 crore in the same quarter last year.
Sequentially, revenue grew 20% from Rs 1,348 crore in the April-June quarter (Q1 FY26).
The company’s adjusted EBITDA skyrocketed 180% year-on-year (YoY) to Rs 156 crore in the September quarter, with adjusted EBITDA margin doubling from 5% to 10%.
For the first six months of the fiscal year 2025-26 (H1 FY26), the Policybazaar parent reported an operating revenue of Rs 2,962 crore, up 36% from Rs 2,178 crore in the year-ago period.
The company’s PAT almost doubled to Rs 220 crore during this period, compared to Rs 111 crore posted in H1 FY25.
Adjusted EBITDA surged over 133% to Rs 245 crore in H2 FY26 from Rs 105 crore in the same period last year.
Core Revenue Drivers of PB Fintech
Policybazaar serves as the lynchpin of PB Fintech’s core online business. It contributed Rs 852 crore to the company’s total operating revenue in Q2FY26. Revenue from this platform rose 36.5% YoY from Rs 624 crore in Q2FY25 and 16.3% QoQ from Rs 732 crore in Q1FY26.
In its earnings release, the company said its total insurance premium grew 40% YoY and 15% QoQ to Rs 7,605 crore in Q2 FY26, led by growth in the online protection business and health insurance. Health insurance surged 60% YoY, while the overall protection business—which includes health and term insurance—grew 44% YoY, reflecting increased consumer focus on risk-based coverage.
“Steady growth continues for Core New Insurance Premium (net of Savings business) at 39% YoY. Savings continues to be stressed against the high base of Q2 last year. Excluding (the) savings category, we have been growing between 35%-45% for the last 10 quarters,” PB Fintech said.
While the company’s insurance broker services vertical reported a profit of Rs 188.3 crore in Q2FY26, other verticals incurred a cumulative loss of Rs 37 crore.
Other verticals include the company’s lending business run under Paisabazaar, PB Pay (its payment aggregator platform), Docprime, Icall Support Services, MyLoanCare, and PB Financial Account Aggregators, among others.
Meanwhile, renewal or trial revenue, a key indicator of long-term profitability, grew 39% to an annualised run rate (ARR) of Rs 774 crore in Q2FY26 from Rs 556 crore in the same quarter last year, driven by 47% growth in the insurance segment. The quarterly renewal revenue in insurance alone reached an ARR of Rs 758 crore in Q2FY26, up from Rs 516 crore in Q2FY25.
Credit Biz Bottoming Out, New Initiatives Scaling Rapidly
Paisabazaar, the company’s core lending vertical, reported a 22% YoY decline in revenue at Rs 106 crore in the quarter ended September 30, 2025, compared to Rs 136 crore in the year-ago quarter.
Sequentially, however, the vertical’s revenue rose 4% from Rs 102 crore posted in Q1FY26, indicating a recovery from earlier weakness in unsecured lending demand. The total disbursal value for the core online business stood at Rs 2,280 crore during the quarter.
Advertisements
“Core Lending Disbursal continues to be stressed with a decline of 33% YoY, up 9% QoQ,” the company said.
On the other hand, PB Fintech’s newer businesses—including PB Partners (its insurance agent aggregator platform), PB for Business, PB UAE and PB Connect—continued to scale rapidly. Revenue from these initiatives jumped 61% YoY and 27% QoQ to Rs 655 crore in the September quarter, as adjusted EBITDA margin recovered from -12% to -4%.
The company’s PB Partners agent platform has now expanded to over 3.8 lakh advisors and operates across 19,000 pin codes, deepening its reach in Tier IV and V towns.
Elsewhere, the company’s UAE operations continued to scale profitability, with premiums growing 64% YoY. “Our UAE Insurance premium grew 64% YoY & aligning more towards health & life insurance, similar to our India business. We have unique value proposition of cross-border health insurance products & claims assurance program for motor insurance. This business is now consistently profitable for three quarters,” the company said.
Breaking Down the Expenses of PB Fintech
Employee Cost:
The expenditure on employees’ remuneration and welfare expenses surged to Rs 600 crore in Q2FY26, up 18.2% from Rs 507.6 crore in the year-ago quarter. On a QoQ basis, this expense head rose 7% from Rs 560 crore.
Ad Expenses:
The Policybazaar parent managed to control the rise in advertising and promotion expenses. The company splurged Rs 280 crore under this expense head in Q2FY26, compared to Rs 278 crore spent in Q2FY25 and Rs 253 crore incurred in Q1FY26.
Other Expenses:
The company incurred Rs 592.5 crore in other expenses in Q2FY26. However, it did not provide a breakdown of these expenses.
Regulatory Hurdles & Expansion Into the Healthcare Sector
It is pertinent to mention that the Insurance Regulatory and Development Authority of India (IRDAI) had carried out inspections at premises linked to Policybazaar in 2020 and imposed a penalty of Rs 5 crore on Policybazaar in August 2025 for various violations, including biased and misleading product promotions. The regulator has also issued additional directions to the company. However, PB Fintech does not expect this action to have any further material impact on the operations of Policybazaar.
In January this year, PB Fintech also forayed into the healthcare sector with the incorporation of a wholly-owned subsidiary, PB Healthcare Services. Later in May, the healthcare venture secured $218 million in one of the largest seed funding rounds, led by US-based venture capital firm General Catalyst.
Following the Q2FY26 earnings announcement, shares of PB Fintech jumped nearly 5% to reach an intraday high of Rs 1,802.90 apiece on the Bombay Stock Exchange on Thursday.
Also Read:
Support our journalism:
For You
Source link