Why is PB Fintech shares down by more than 5% today? Here’s what you need to know

Synopsis: The shares of India’s largest online platform for insurance and lending products were in focus after crashing more than 5% after the new insurance bill was said to cap commissions, remuneration, and rewards paid to insurance agents and intermediaries. Let us see how the company might be affected by this. 

The shares of this company, which is India’s largest online platform for insurance and lending products through its flagship brands, Policybazaar and Paisabazaar, through which they provide convenient access to insurance, credit, and other financial products, had its shares tumble as the new insurance bill is said to cap commissions and a few other aspects of insurance services in which the company operates.  

With a market cap of Rs 84,722 crore, the shares of PB Fintech Ltd crashed more than 5% and reached their low at Rs 1,813.05 compared to their previous day’s closing price at Rs 1,925.30 and are trading at a PE of 185, whereas their industry PE is 33.3. The shares have given a return of 38% since their listing in November 2021. 

About the bill

The Insurance Bill 2025 has been introduced to strengthen oversight in India’s insurance sector, with a clear focus on protecting policyholders and improving transparency. A key proposal in the bill is to give IRDAI explicit powers to cap commissions, remuneration, and rewards paid to insurance agents and intermediaries. By bringing payouts under tighter regulatory control, the government aims to curb excessive incentives in the distribution chain and ensure fairer practices for customers.

At the same time, the bill is part of a broader reform push in the insurance industry. It complements earlier measures such as allowing up to 100% foreign direct investment (FDI) in insurance companies, subject to safeguards like having key management personnel who are Indian citizens. While commission caps are intended to improve discipline and governance, the higher FDI limit is designed to attract global capital, increase competition, and support long-term growth and insurance penetration across the country.

How it will affect Policy Bazaar

The company’s earnings are largely driven by its insurance broking business, which contributed about Rs 1,428 crore of revenue out of a total of Rs 1,613 crore for the period, and the remaining Rs 185 crore comes from other sources. These other sources consist of commissions from financial products. This may not seem like a huge impact, but it affects a segment of the company revenue. 

As a result, any move to cap commissions directly affects the company’s revenue and profit engine, although the exact impact can be assessed after complete details of the bill. 

In summary, the financials clearly show that the company’s performance is closely linked to insurance broking economics. Regulatory changes around commissions therefore pose a near-term risk to margins and profitability, even if business volumes remain stable.

Negative sentiments regarding the bill could also have caused investors to liquidate their position in the company, causing a fall in the share price. Final details of the bill are still awaited. 

Financials and more

The revenue from operations is at Rs 1614 crore in Q2 FY26 versus Rs 1167 crore in Q2 FY25, which is a growth of about 38 per cent. Similarly, the net profit has also increased from Rs 51 crore in Q2 FY25 to Rs 135 crore in Q2 FY26, which is a growth of about 165 per cent.

PB Fintech is a technology-led financial services platform that offers end-to-end insurance and credit solutions through its digital marketplaces. It simplifies complex financial choices by providing personalised, transparent options across insurance, credit, and financial planning, helping consumers make informed decisions.

The company follows an asset-light, data-driven model, leveraging technology and analytics to connect consumers with insurers and lenders. This scalable marketplace approach, supported by strong network effects and partner integrations, positions PB Fintech as a consumer-centric intermediary in India’s evolving financial services landscape.

Written by Leon Mendonca. 

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