PB Fintech Q2 profit soars 165% on strong protection premium growth

B Fintech Ltd, the parent of Policybazaar and Paisabazaar, reported a sharp rise in profitability for the September quarter (Q2 FY26), driven by robust growth in its insurance business, particularly in protection products like health and term insurance.

The company posted a consolidated net profit (PAT) of ₹135 crore, up 165% year-on-year from ₹51 crore in the same period last year, marking its fourth consecutive profitable quarter. Operating revenue climbed 38% YoY to ₹1,614 crore, led by the insurance segment’s solid performance, according to the company’s exchange filing.

“Protection, encompassing health and term insurance, continues to lead the charge with new premium growth of 44% year-on-year,” the company said in its statement, adding that health insurance premiums grew 60% during the quarter. The total insurance premium stood at ₹7,605 crore, a 40% jump from the year-ago period, with the core online insurance business growing 34%.

Adjusted EBITDA rose 180% YoY to ₹156 crore, translating to a margin improvement from 5% to 10%. “Our PAT margin has expanded to 8% this quarter, reflecting efficiency improvements and operating leverage,” the company said.

Renewal and trail revenue, a key metric for recurring income, grew 39% YoY on a rolling 12-month basis to ₹774 crore, led by a 47% jump in the insurance segment. The company said this remains “a key driver of long-term profit growth,” with quarterly insurance renewal revenue at an annualised run rate (ARR) of ₹758 crore.

The credit marketplace business under Paisabazaar, however, remained under pressure. Core credit revenue fell 22% YoY to ₹106 crore but grew 4% sequentially, with total loan disbursals of ₹2,280 crore in the quarter. The company noted that “the credit business has likely bottomed out” and expects gradual recovery in the coming quarters.

PB Fintech’s new initiatives — including PB Partners, PB for Business, and PB UAE — continued to show momentum, with revenue from these verticals up 61% YoY. PB Partners, its agent aggregator platform, now has over 3.8 lakh advisors across 19,000 pin codes, covering nearly 99% of India. The UAE business also maintained profitability for the third straight quarter, with premium growth of 64% YoY.

“Our focus remains on scaling protection-led growth while improving profitability across all lines of business,” the company said. The management added that the company’s “customer satisfaction score (CSAT) of 90.5%” and faster claim settlement services continue to strengthen its brand in both urban and smaller markets.

Since its listing in November 2021, PB Fintech’s revenue has grown at a CAGR of 55%, from ₹280 crore in Q2 FY22 to ₹1,614 crore in Q2 FY26, while PAT margin has improved from a loss of 73% to a profit margin of 8%.

The company said it is doubling down on technology investments to enhance customer experience, improve fraud detection, and expand hybrid (online-offline) distribution. “The quality of business, including honest declarations, sharp risk assessment, and complete product disclosure, remains central to our approach,” the company told investors during its earnings call.