PB Fintech Limited Q3 FY26 Earnings Call Summary

Summary

PB Fintech Limited - Q3 FY26 Earnings Call Summary Monday, February 02, 2026 5:00 PM

Event Participants

Executives 6 Alok Bansal, Mandeep Mehta, Mohit Khobragade, Santosh Agarwal, Sarbvir Singh, Yashish Dahiya

Analysts 8 Dipanjan Ghosh, Manas Agrawal, Nischint Chawathe, Nidhesh Jain, Prayesh Jain, Sachin Dixon, Sachin Salgaonkar, Supratim Datta

Financials & KPIs

Geographic & Segment Commentary

• Core Online Insurance: Strong growth was driven by risk products, particularly health (+79% YoY) and term insurance. Management attributed this to high disclosure standards at onboarding, which facilitates a smoother claims experience and builds consumer trust.
• PB Partners (B2B2C): The segment continues to consolidate leadership by focusing on smaller, high-quality advisors in Tier 4 and Tier 5 towns. While margins are thin due to the variable cost nature of agent commissions, the platform provides significant scale to the overall insurance ecosystem.
• UAE Operations: Insurance premiums grew 62% YoY with a strategic shift toward health and life products, which now constitute more than 50% of the regional premium. The business has remained consistently profitable for four consecutive quarters.
• Paisabazaar: The segment is pivoting from purely credit discovery to a full financial platform, recently launching bonds and fixed deposits. Improving customer LTV through asset and liability management remains the core strategic focus.

Company-Specific & Strategic Commentary

• International Expansion & QIP: Management proposed a QIP to fund global expansion, targeting profit-rich markets in the Middle East, Southeast Asia, or Europe. The strategy involves acquiring stable players and applying Policybazaar’s innovation and technology to transform them (Yashish Dahiya).
• Claims-Led Growth: Growth is being driven by a “virtuous cycle” where superior disclosure capture leads to higher claim settlement rights, which in turn drives customer preference (+90% CSAT). Policybazaar accounted for an estimated 40% of new retail health lives added in India recently (Sarbvir Singh).
• PB Health & Integrated Care: The company is building a health network involving ~500 hospitals with 15-20% self-owned capacity to control quality and care pathways. The goal is to lower incidence costs by directing patients to appropriate care levels (secondary vs. tertiary).
• MGA Opportunity: Management views Managing General Agents (MGA) as the most transformational potential move for the industry, allowing distributors to handle underwriting and claims, similar to the impact of NBFCs on the banking sector.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

International Strategy & QIP

• Question: What is the rationale for a QIP given the existing ₹5,000 Cr cash and a strong India business? (Sachin Salgaonkar)
• Answer: It is the right time to expand as the India business is strong. PB aims to be a global MNC, targeting markets with high profit pools but low innovation. Any acquisition must be strategically fit and financially accretive (Yashish Dahiya).

Commission Structure & EoM

• Question: How will potential commission cuts or the transition to COR-based models for health impact the P&L? (Manas Agrawal)
• Answer: PB is comfortable within the 30-35% EoM framework. The COR approach was adopted to leverage superior disclosure capture for better claim outcomes, not to maximize take rates. Being a high-efficiency player, tighter regulations often lead to market share gains for PB (Yashish Dahiya).

PB Partners Profitability

• Question: Why are margins thin in the POSP business compared to other B2B2C segments like mutual funds? (Dipanjan Ghosh)
• Answer: Unlike mutual funds (pull products with AUM), motor insurance is a push product with high variable costs. The goal for PB Partners is scale and ecosystem relevance rather than immediate high margins (Sarbvir Singh).

Health Segment Performance

• Question: What are the drivers of the 79% growth in health? (Prayesh Jain/Nischint Chawathe)
• Answer: Growth is primarily driven by fresh new lives rather than ticket size or portability. PB’s share of new retail health lives in India is significant (~40%). High growth is sustainable because of the claims-service brand equity (Sarbvir Singh).

Key Takeaway

PB Fintech delivered a robust Q3 FY26, characterized by a 165% YoY increase in PAT to ₹189 crores and a 45% growth in total insurance premiums to ₹7,965 crores. The performance was anchored by the core online insurance segment, where new health insurance premiums surged 79% YoY, driven by the company’s “claims-assured” value proposition and high disclosure standards. Strategically, the company is pivoting toward international expansion via a proposed QIP, seeking to export its distribution innovation to markets in the Middle East and Europe. Management also clarified that Paisabazaar and new initiatives have hit a profitability inflection point, while the integration of healthcare services (PB Health) aims to optimize the insurance value chain through better care pathway management. With a strong renewal ARR of ₹863 crores and expansion into the MGA model, PB Fintech remains positioned to outperform industry growth rates while maintaining a disciplined focus on unit economics and consumer trust.