Why Did PB Fintech Shares Fall 6% Despite a 162% Surge in Net Profit?

Synopsis:- Shares fell nearly 6% despite a 162% YoY jump in quarterly earnings, as brokerages trimmed targets to ₹1,750. Concerns over a proposed QIP, healthcare expansion, and a steep P/E of 118 versus industry 28.8 triggered caution, even with premiums at ₹7,965 crore.

The shares of the insurance solution provider plummeted up to 6 percent in today’s trading session despite the company reporting robust Q3FY26, but brokerages reduced the target price.

With a market capitalization of Rs 69,243.90 crore, the shares of PB Fintech Ltd were trading at Rs 1,489.00 per share, decreasing around 5 percent as compared to the previous closing price of Rs 1,562.35 apiece.

Q3FY26 Highlights

The shares of PB Fintech Ltd have seen significant movement after announcing its financial performance in Q3FY26, in which revenue increased by 37 percent on a year-on-year basis from Rs 1,292 crore in Q3FY25 to Rs 1,771 crore in Q3FY26. However, on a Quarter-on-Quarter basis, revenue increased by 10 percent from Rs 1,614 crore in Q2FY26 to Rs 1,771 crore in Q3FY26.

Moreover, net profit increased by 162 percent on a yearly basis from Rs 72 crore in Q3FY25 to Rs 189 crore in Q3FY26, meanwhile, on a quarter-on-quarter basis, net profit increased by 40 percent from Rs 135 crore in Q2FY26 to Rs 189 crore in Q3FY26. 

Furthermore, the company’s total insurance premiums rising 45% YoY to Rs 7,965 crore, driven by robust online protection growth, while renewal revenue reached an ARR of  Rs 863 crore. Core new insurance premiums grew 36%, and credit disbursals stood at Rs 2,470 crore, reflecting sustained growth momentum.

Brokerage Coverage

However, despite strong Q3FY26 volume growth aided by GST-led tailwinds in term and health insurance, Motilal Oswal has cut its target price to ₹1,750 from ₹2,000 and maintained a Neutral stance, indicating limited upside and moderating optimism around near-term earnings visibility.

JM Financial, while retaining an Add rating, also reduced its target to ₹1,750 from ₹1,830. The brokerage noted performance was largely in line with expectations, suggesting that much of the growth momentum may already be priced in, limiting scope for significant rerating.

Concerns also stem from the proposed QIP for international expansion and the ongoing healthcare foray, which could increase volatility and stretch management bandwidth. As a result, the valuation multiple has been lowered to 43x FY28E EBITDA, reflecting a more cautious outlook.

Additionally, the stock trades at a steep P/E of 118 compared to the industry average of 28.8. This sharp premium valuation leaves little room for earnings disappointment and increases the risk of correction if growth slows or execution falters.

PB Fintech Limited is a leading Indian digital financial services platform, best known for operating Policybazaar and Paisabazaar. The company enables customers to compare and purchase insurance, loans, and other financial products online. With a technology-driven model, it has transformed how Indians access and manage financial services.

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