POLICYBZR - PB Fintech.
Financial Performance
Revenue Growth by Segment
Consolidated revenue grew at a CAGR of 55% from ā¹280 Cr in Q2 FY22 to ā¹1,614 Cr in Q2 FY26. Core business segments showed strong momentum with Health insurance growing 60% YoY, Protection (Life) growing 44% YoY, and Motor insurance growing approximately 40% YoY.
Geographic Revenue Split
The UAE insurance business is a significant contributor, with premiums growing 64% YoY to ā¹415 Cr in Q2 FY26. The India business covers 99% of pin codes (19,000+), driving growth in Tier 4 and 5 towns.
Profitability Margins
Consolidated PAT grew 165% YoY to ā¹135 Cr in Q2 FY26, with the PAT margin improving from 4% to 8% YoY. Historically, the PAT margin was -73% in Q2 FY22. The profit pool currently represents 1.77% of the total insurance premium.
EBITDA Margin
The company reported a sharp improvement in EBITDA margins led by the Core online business. While specific EBITDA % was not explicitly stated for the quarter, the PAT margin reached 8% (ā¹135 Cr) on a revenue of ā¹1,614 Cr.
Capital Expenditure
Net cash outflow for the purchase of property, plant, equipment, and intangible assets was ā¹26.84 Cr for the half-year ended September 30, 2025, compared to ā¹41.38 Cr in the previous year period.
Credit Rating & Borrowing
Not disclosed in available documents; however, the company maintains a strong equity position of ā¹6,438 Cr with total liabilities of only ā¹1,092.54 Cr as of September 30, 2025.
Operational Drivers
Raw Materials
As a service-based fintech, primary costs are Employee benefits (ā¹355.44 Cr in Q2 FY26, representing 22% of revenue) and Advertising/Promotion (ā¹193.88 Cr, representing 12% of revenue).
Import Sources
Not applicable for digital service operations.
Key Suppliers
Key partners include various insurance companies and financial institutions whose products are aggregated on the platform. Management noted sharing the burden of partner P&L softening, which impacted trail revenue.
Capacity Expansion
The company has expanded its reach to 19,000 pin codes (99% of India). It is increasingly moving towards smaller, higher-quality advisors to drive growth in Tier 4 and 5 towns.
Raw Material Costs
Employee share-based payment expense was ā¹109.67 Cr for the half-year ended September 30, 2025. Total expenses for Q2 FY26 were ā¹1,334 Cr.
Manufacturing Efficiency
Not applicable; however, the UAE business has achieved consistent profitability for three consecutive quarters.
Logistics & Distribution
Distribution is handled digitally and via a network of advisors across 19,000 pin codes.
Strategic Growth
Expected Growth Rate
55%
Growth Strategy
Achieving growth through expansion into Tier 4/5 towns (99% pin code coverage), scaling the UAE business (64% growth), and aiming for the PoSP (PB Partners) business to reach break-even next year. The company targets a net profit of ā¹1,000 Cr next year and a long-term profit pool of 3% of premiums by FY30.
Products & Services
Insurance policies (Life, Health, Motor), credit reports, personal loans, and credit cards.
Brand Portfolio
Policybazaar, Paisabazaar, PB Partners, Docprime, PB Pay.
New Products/Services
Unique cross-border health insurance products and claims assurance programs for motor insurance in the UAE market.
Market Expansion
Expansion into the UAE market (now consistently profitable) and deepening penetration in rural India (Tier 4/5 towns).
Market Share & Ranking
Not explicitly ranked, but covers 99% of Indian pin codes, indicating a dominant market position in aggregation.
Strategic Alliances
Strategic partnerships with major Indian and UAE insurers; acquisition of Genesis Group (May 2024) to bolster Middle East operations.
External Factors
Industry Trends
The industry is shifting toward digital aggregation and PoSP models. PB Fintech is positioning itself by covering 99% of pin codes and doubling down on alternate data for risk assessment to improve book quality.
Competitive Landscape
Operates in a 'bucket shop' distributor environment but differentiates by being more involved in the risk assessment process for partners.
Competitive Moat
Durable moat built on 18 years of data, a massive network of 19,000 pin codes, and a profit-to-premium efficiency of 1.77% which is difficult for new entrants to replicate.
Macro Economic Sensitivity
Sensitive to insurance penetration rates in India and regulatory shifts in the financial services sector.
Consumer Behavior
Increasing demand for health and life insurance in both India and UAE markets.
Geopolitical Risks
Trade and regulatory barriers in the UAE; however, the company uses cross-border health insurance as a unique value proposition.
Regulatory & Governance
Industry Regulations
Regulated by IRDAI (Insurance Brokers) Regulations 2018 in India and Central Bank of UAE (CBUAE) Resolution No. 15 of 2013. Policybazaar is also an electronic commerce operator under the CGST Act 2017.
Taxation Policy Impact
Effective tax rate for H1 FY26 was approximately 6.3% (ā¹14.86 Cr tax on ā¹234.40 Cr PBT).
Legal Contingencies
IRDAI issued show-cause notices and a letter of advice on August 25, 2025, regarding documentation and filing processes. The company impaired its investment in Myloancare Ventures by ā¹26.67 Cr due to liquidity issues and cash burn.
Risk Analysis
Key Uncertainties
Regulatory changes by IRDAI and potential further softening of partner P&L which could reduce trail revenues by an estimated 2-5% based on margin sensitivity.
Geographic Concentration Risk
High concentration in India (99% pin codes), though UAE is growing rapidly (64% YoY).
Third Party Dependencies
High dependency on insurance partners; if partners suffer P&L losses, Policybazaar shares the burden through reduced trail revenue.
Technology Obsolescence Risk
Mitigated by continuous investment in risk assessment models and alternate data collection.
Credit & Counterparty Risk
Trade receivables increased to ā¹246.99 Cr, indicating potential credit exposure if partner payments are delayed.