From Losses to Profits: PB Fintech’s Impressive Turnaround and Future Plans

Synopsis: India’s online insurance market is dominated by one player holding a 93% share, PB Fintech. After years of losses, it has turned around with a 165% surge in profits and is now targeting Rs 1 trillion in premiums. Strong GST tailwinds and large protection gaps make Policybazaar’s parent uniquely positioned as India’s leading fintech powerhouse.

PB Fintech: Powering India’s Digital Insurance and Credit Ecosystem

PB Fintech stands as India’s leading online marketplace for insurance and lending products, commanding a dominant 93% market share through its platforms, Policybazaar and Paisabazaar. The company offers comprehensive end-to-end solutions, providing seamless access to insurance, credit, and various financial products. It is committed to raising awareness among Indian households about the financial risks associated with death, illness, and damage. Leveraging robust data insights and advanced analytics, PB Fintech enables insurers and lending partners to innovate and create tailored financial products for consumers. Its business model thrives on powerful network effects driven by strong consumer demand, deep risk expertise, and exceptional service quality. 

As of Q2 FY26, PB Fintech caters to 120.2 million registered users, with 23 million actively transacting consumers, and has sold 59 million policies through Policybazaar, partnering with 51 insurance companies. On the lending side, Paisabazaar reported that approximately 54.8 million consumers accessed their credit scores, with 6.8 million actively transacting users completing 10 million transactions. 

Policybazaar and Paisabazaar: Dual Engines of PB Fintech’s Revenue Model

Policybazaar: Policybazaar primarily earns revenue through commissions from insurance partners and renewal premiums. Additional income streams include value-added services such as telemarketing sales, post-sales support, account management, and premium collection. The platform offers a comprehensive suite across 10 product categories, including health, life, four-wheeler, two-wheeler, travel, home, and corporate insurance, spanning over 800 products from 51 insurers.

Paisabazaar: Paisabazaar generates revenue mainly from commissions paid by lending partners, along with fees from credit advisory, marketing, and related services. As of Q2 FY26, it serves approximately 5.5 crore credit score consumers and handles around 21 lakh average monthly enquiries. The platform provides credit offers from more than 70 partners. 

Insurance and Lending Industry Landscape

India’s insurance sector has grown at a 17% CAGR over two decades, projected to reach Rs 19,30,290 crore by FY26, fueled by rising awareness, regulatory reforms, and private participation. Yet, penetration remains low at 3.7% (FY24), with life insurance density at USD 74, far below global peers, and general insurance density at USD 23 versus the world average of USD 528. High out-of-pocket healthcare spending (66%), escalating medical costs, and a growing geriatric population are boosting health insurance demand. The FY26 Budget raised FDI limits to 100%, enhancing sector prospects. Technology is transforming insurance via fintech innovations that boost productivity, user experience, and cost efficiency.

Consumer lending, encompassing personal, home, and auto loans, has low penetration at 37% versus global averages (62%), due to limited financial literacy, rural reach gaps, and debt aversion. Growth drivers include rising spending, digitisation, new tech lenders, and regulatory support. Tech platforms enhance reach, credit scoring, fraud prevention, and efficiency across the lending chain.

Q2 FY26 Financial Highlights

• PB Fintech reported a total premium of Rs 7,605 Cr in Q2 FY26, up 40% YoY, driven by 44% growth in online protection and 60% growth in the health segment. Disbursals surged 102% YoY to Rs 8,570 Cr. Since Q2 FY22, premiums and disbursals have grown 5.3x and 5.7x, respectively.
• Consolidated revenue rose 38% YoY to Rs 1,614 Cr, supported by a 36% increase in core insurance revenue. Quarterly insurance renewals reached an ARR of Rs 758 Cr, up from Rs 516 Cr last year. Core insurance premiums (excluding savings) sustained a 35-45% growth over 10 quarters despite pressure on the savings segment.
• The credit segment generated Rs 106 Cr in revenue with disbursals of Rs 2,280 Cr; however, credit revenue declined 22% YoY.
• Profit after tax jumped 165% YoY to Rs 135 Cr, with margins expanding from 4% to 8%. Over four years, revenue increased nearly sixfold at a 55% CAGR, with PAT margin improving from -73% to 8%, reflecting strong operational efficiency.
• Total expenses rose 17.9% QoQ and 28.4% YoY to Rs 1,558.8 Cr. Employee benefits, the highest cost, increased 7.2% QoQ and 18.2% YoY to Rs 600 Cr. Advertising and promotion expenses were Rs 280.1 Cr, nearly flat YoY but up 10.6% QoQ. Other expenses surged 29.5% QoQ and 67% YoY to Rs 592.5 Cr, while network and internet costs rose 26% YoY to Rs 43.1 Cr.

Revenue Surge Meets Profitability Milestone

Financial Year2020 (Mar)2021 (Mar)2022 (Mar)2023 (Mar)2024 (Mar)2025 (Mar)5-year CAGRRevenue (Rs Cr)7718871,4252,5583,4384,97745.21%PAT (Rs Cr)-304-150-833-48864353–Loan Disbursals (Rs Cr)6,5502,9176,60711,61914,80820,46525.59%Insurance Premium (Rs Cr)3,7814,7556,97511,58915,87523,48644.09%Renewals Revenue (Rs Cr)10216222431847166845.62%Credit Score Consumers (Cr)1.802.202.703.504.305.1023.16%

PB Fintech delivered explosive revenue growth, surging from Rs 771 Cr in FY20 to Rs 4,977 Cr in FY25 at a 45.21% CAGR, outpacing industry averages through scaled insurance premiums (44.09% CAGR to Rs 23,486 Cr) and loan disbursals (25.59% CAGR to Rs 20,465 Cr). Renewals revenue mirrored this momentum at 45.62% CAGR, reaching Rs 668 Cr by FY25, underscoring sticky customer economics and high-margin predictability that bolstered operating leverage. 

Profitability marked a dramatic turnaround, flipping from cumulative losses (peaking at -Rs 833 Cr in FY22) to Rs 64 Cr PAT in FY24 and Rs 353 Cr in FY25. This strong performance comes from reaching untapped markets alongside better operational efficiency.​ Credit score consumers grew steadily at 23.16% CAGR to 5.1 Cr, fueling Paisabazaar’s network effects despite cyclical pressures, while Q2 FY26’s 38% revenue jump to Rs 1,614 Cr and 165% PAT rise to Rs 135 Cr signal a sustained trajectory toward 3% PAT/premium goals.

Growth Strategy and New Verticals

PB Fintech is rapidly expanding into new growth areas, with a key focus on affordable healthcare through its subsidiary, PB Health. This initiative aims to develop a “payvider” model that combines affordable hospital services with comprehensive health solutions for the uninsured and middle-class segments. By leveraging advanced AI technologies, PB Health is building a holistic health ecosystem to address critical gaps in healthcare accessibility.

The company is also fueling growth through its agent aggregator platform, PB Partners, which is a platform for independent sellers of Insurance and other financial products. It now boasts over 380,000 advisors across 19,000 PIN codes, covering 99% of India’s postal zones. This platform emphasises smaller, high-quality, and diversified advisors across multiple business lines, driving strong expansion, especially in Tier 4 and Tier 5 towns and extending PB Fintech’s reach into underserved markets.

On the international front, PB Fintech’s UAE insurance business grew 64% year-on-year, primarily across health and life insurance segments, closely mirroring its core Indian business model. This segment offers unique cross-border health insurance products and a claims assurance program for motor insurance, maintaining consistent profitability for three consecutive quarters.

Collectively, PB Fintech’s new initiatives, including PB Partners, PB for Business, PB UAE, and PB Connect, generated Rs 655 crore in revenue for Q2, representing a 61% year-on-year increase. These initiatives also recorded a significant improvement in adjusted EBITDA margin, moving from -12% to -4%, alongside a positive contribution margin of 5%, signalling solid progress toward overall profitability.

Impact of GST Cut on Policybazaar

The GST cut on individual life and health insurance premiums from 18% to 0%, effective September 22, 2025, delivers immediate benefits to PB Fintech’s Policybazaar business by slashing consumer prices, sparking record demand, and boosting conversions. September 5 and 22 marked the platform’s highest traffic days ever for health, term, and other lines, with strong October performance despite the seasonal Diwali lull. This heightened awareness around insurance has translated into higher bookings and persistence. 

However, the loss of input tax credit (ITC) for insurers poses potential headwinds, as some may adjust distributor commissions, impacting PB Fintech’s revenue from commissions and renewals. Management views this as a nuanced, multi-stakeholder dynamic involving insurers, regulators, government, consumers, and employees, rejecting simplistic media narratives. 

The management prioritises renewal rate improvements (measured by policy count) to retain more customers long-term, leveraging lower prices and enhanced product features like higher cumulative bonuses. Cross-sell and upsell opportunities follow, such as pushing higher sums assured in term plans (e.g., Rs 1.5 Cr vs. Rs 1 Cr for minimal extra cost). From the next quarter, premium figures will exclude GST with restated historicals for comparability, positioning all stakeholders, consumers, insurers, and Policybazaar for mutual gains.  

What lies ahead for PB Fintech?

PB Fintech aims for 1 trillion rupees in annual insurance premiums. This target may shift by one or two quarters due to GST changes but remains achievable through sustained 35-45% core new premium growth excluding savings over the past 10 quarters. Management expects PAT as a percentage of premium to reach 3% by FY30, up from the current 1.77%, driven by renewal trail revenue of 774 Cr (39% YoY growth) and consistent profitability improvements. New initiatives like PB Partners target near-zero adjusted EBITDA losses in FY27, with PoSP (Point of Sales Person) losses becoming minimal next year while prioritizing strategic growth; core credit has bottomed out with a 4% QoQ revenue rise. From Q3 FY26, premiums will exclude GST with restated historicals for clear comparisons, supporting long-term profit pools from high-quality fresh business and renewals.​

Competitive Edge and Risks

PB Fintech leads with 93% online aggregator share, 90.5% CSAT (Customer Satisfaction Score), AI-driven fraud detection, and end-to-end claims support in 200 cities, delivering superior business quality via sharp risk assessment and 51 insurer partnerships. Network effects from 120.2 Mn registered users, 23 Mn transactors, and a phygital hybrid model (blending its extensive digital platforms with in-person physical support) provide scale advantages. While PB Partners covers 99% of pin codes with 380K advisors for Tier 4-5 penetration. However, high competitive intensity from online distributors, internet firms, and traditional players challenges the evolving fintech space. Credit-cycle risks expose Paisabazaar to downturns and insurance seasonality; regulatory scrutiny from IRDAI, SEBI, and RBI adds uncertainty. Tech/data risks from rapid evolution, partner dependencies (client attrition), and past losses (Rs 488 Cr in FY23) could impact margins if growth slows.​

Moat through leveraging tech and digital infrastructure

PB Fintech is steadily deepening its moat by combining proprietary technology with India’s rapidly evolving digital public infrastructure. This is playing out against the backdrop of a structurally rising digital payments and non-cash ecosystem in India, with the value of digital transactions expected to reach USD 60-70 trillion by FY28. PB Fintech is actively leveraging key elements of India’s digital public infrastructure, such as DigiLocker, Account Aggregator, UPI, e-KYC, and PMJDY, to onboard and serve customers in a market where insurance penetration remains low by global standards. 

Over time, every transaction on its platform feeds into a rich data ecosystem across insurance and credit, enabling sharper risk assessment, smoother claims assistance, fraud detection, and increasingly personalized product design. This creates a virtuous flywheel: more consumer data allows better plan recommendations and risk management, which reduces costs for both insurers and customers, encouraging insurers to offer more products and services on the platform, justifying further tech investments and physical expansion, and ultimately attracting more customers back into the ecosystem.

Conclusion

PB Fintech’s commanding 93% market share and tech-driven scale position it ideally to capture India’s insurance growth, where 3.7% penetration lags global norms amid a 17% CAGR fueled by rising incomes and DPI rails like UPI. GST reductions have ignited volume surges, evident in record traffic days, while renewal ARR at Rs 758 Cr and new verticals analytically support the 1 Tn premium trajectory, potentially yielding 3% PAT/premium by FY30 through better profit per policy.​

Yet, this path demands navigating credit-cycle volatility (Paisabazaar down 22% YoY), regulatory flux (IRDAI/RBI scrutiny), and partner dependencies, where AI moats (fraud detection, 90.5% CSAT) and phygital reach provide defensible edges over fragmented rivals. Ultimately, PB Fintech’s focus on quality-led expansion, bridging 97% mortality gaps and 66% out-of-pocket health spends, transforms underpenetration into enduring supremacy, balancing risks with resilient profitability.​

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