For a company that practically invented the idea of buying insurance online, PB Fintech, the parent of Policybazaar and Paisabazaar, looks oddly out of place in India’s platform-stock comeback.
Zomato, now Eternal is sizzling.
Nykaa has found its fashion footing.
Even Paytm’s ghost has been half-exorcised.
Yet, PB Fintech’s stock has barely moved. It is down nearly 16% from the beginning of the year, in a market where Zomato, Nykaa and Paytm are all up 22%, 55% and 25% respectively — begging the question, what is wrong with PB Fintech?
So what is holding it back?
A good quarter that didn’t feel good
On paper, PB Fintech has done everything right.
Financial Year 2024–25 (FY25) had already ended on a strong note, with annual operating revenue touching Rs 4,977 crore, up 45%, and profit at Rs 353 crore, almost six times higher than the previous year.
In the June quarter (Q1FY26), consolidated revenue rose 33% year-on-year to Rs 1,348 crore. Net profit climbed 40% to Rs 85 crore. The online insurance premium grew 35%, led by new health policies that surged 65%. The company’s renewal income, the steady annuity-like stream from existing customers, climbed 43% to Rs 725 crore.
Even the United Arab Emirates (UAE) arm, once a small experiment, grew 68% and turned profitable for the second consecutive quarter. By most measures, PB Fintech delivered a strong quarter. And yet, the market has not rewarded it.
The new headwinds
Indian insurance has been in the news recently and not for reasons that help sentiment.
Changes to Goods and Services Tax (GST) rules, the potential launch of the Bima Sugam platform, and talk of regulatory pressure on distributor commissions have all cast a shadow over the sector.
The uncertainty has already shown up in the stock price. PB Fintech has corrected since September 4, 2025, the day the government announced the new GST 2.0 framework.
The revised GST rules, while aimed at simplification, removed input tax credit (ITC) benefits for insurers. That could squeeze margins across the insurance value chain and, over time, weigh on distributor commissions. The Bima Sugam initiative, meanwhile, is meant to create a unified digital marketplace for insurers and consumers. While still in the early stages, it raises questions about how much control private intermediaries like Policybazaar will retain over customer acquisition and distribution economics.
At the same time, PB Fintech’s new diversification into health services has added another variable. While it could open a new growth avenue, investors remain cautious about the shift toward a more capital-heavy model that differs sharply from its asset-light digital roots.
For now, none of this directly disrupts PB Fintech’s business model, but it blurs visibility just enough to make investors nervous.
When regulatory winds shift, the market often chooses to step back and wait for clarity.
The glamour has moved elsewhere
Platform stocks thrive on stories.
Zomato has its quick-commerce surge.
Nykaa is riding an early festive wave.
PB Fintech, in contrast, sounds almost boring.
It is talking about renewals, trail revenues, and steady margins, the kind of things that please accountants but not investors looking for excitement.
Even its other business, Paisabazaar, has turned subdued. Credit revenue fell 22% in the June quarter to Rs 102 crore, with loan disbursals at Rs 2,095 crore.
The lending marketplace once promised to be the next engine of growth, but tighter funding norms and slower unsecured-loan growth have taken the shine off.
PB Fintech has been quick to point out that it is focussing on higher-quality borrowers and sustainable growth, but that narrative is more about discipline than disruption. And right now, markets are rewarding the latter.
Growing up comes with slower stories
PB Fintech is no longer a start-up story.
The company employs over 23,000 people, reaches 99% of India’s postal identification number (PIN) codes, and boasts more than 3.5 lakh registered agents under PB Partners. Its customer-support score, a reflection of claims handling and service, stays above 90%.
That is the kind of scale most companies dream of. But it also means the wild growth phase is behind it.
For nine consecutive quarters, its core online insurance growth has been around 40%.
Predictable and steady.
While every investor’s dream, it may also be too steady for a market hooked on surprise.
The valuation puzzle
At roughly 216 times FY26 earnings, PB Fintech’s valuation assumes far more than steady growth.
Investors paying that kind of multiple do not just want predictability; they want potential, pace, and a story that fires their imagination.
Right now, Policybazaar offers profits and prudence, not promise. Its fundamentals are strong, but its narrative feels stuck. In the world of platform stocks, dependability alone does not fuel rallies. Excitement does.
At these valuations, investors need more than dependable. They need a reason to believe PB Fintech can surprise them again.
What could change the narrative
So what needs to change for investors to take notice?
PB Fintech needs a new spark, something beyond just more efficient insurance sales.
One such opportunity could come from healthcare. PB Fintech has committed around ₹800 crore to this long-term plan, with about Rs 200 crore to be deployed in the first year toward creating a “healthcare service layer.” The plan, which aims to link digital consultations, at-home care and partner hospitals, could reshape Policybazaar’s role. But it also takes the company into a capital-heavy space where execution risks are higher and payoffs slower.
Beyond this, PB Fintech’s scale gives it the ability to expand into adjacent financial products, personalised wellness insurance, or even embedded finance. The ingredients are all there; what’s missing is a big, bold story that can make investors imagine a different future.
Right now, Policybazaar looks like the responsible older sibling in a family of risk-taking, fast-growing technology stocks.
Dependable, yes, but a little dull.
The takeaway
The irony is that PB Fintech has delivered exactly what the market used to demand. It has turned profitable, shown financial discipline and achieved growth without cash burn.
But markets, fickle as ever, have moved on to flashier stories. Investors today are willing to pay up for narrative, not just numbers.
Policybazaar’s problem is not that something is wrong with it. It is that everything about it feels fine. And in a market addicted to big promises, “fine” does not move share prices.
Note: We have relied on data from Screener throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Manvi Aggarwal has been tracking the stock markets for nearly two decades. She spent about eight years as a financial analyst at a value-style fund, managing money for international investors. That’s where she honed her expertise in deep-dive research, looking beyond the obvious to spot value where others didn’t. Now, she brings that same sharp eye to uncovering overlooked and misunderstood investment opportunities in Indian equities. As a columnist for LiveMint and Equitymaster, she breaks down complex financial trends into actionable insights for investors.
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