Neutral PB Fintech; target of Rs 2000: Motilal Oswal

Motilal Oswal's research report on PB Fintech

PB Fintech is a dominant digital marketplace in both insurance and consumer credit—two sectors benefiting from rising financial awareness, digitalization, and significant under-penetration. With ~90% share in online insurance and growing traction in digital unsecured loans, the company offers scaled access to India’s structurally growing protection (life and health insurance) and credit markets. The company has rapidly scaled its presence in India’s insurance distribution landscape, with its share of overall industry premiums rising to ~3% in FY25 (1.3% in FY20). This sharp expansion underscores the platform’s growing relevance as a mainstream distribution channel, steadily challenging the dominance of traditional offline players. The business has evolved from customer acquisition to lifecycle monetization. PB Fintech reported an annualized run-rate of renewal revenue at INR7.7b in 2QFY26 (+39% YoY) and positive adjusted EBITDA across both Policy Bazaar (PLB) and Paisa Bazaar (PSB). We believe the platform is well-positioned for long-term margin expansion and expect EBITDA margin to reach ~13% in FY28 (from 2% in FY25).

Outlook

The possibility of commission restructuring by insurance companies due to the loss of input tax credit post GST exemption, poses a key risk for the company’s top-line growth. We initiate coverage on PB Fintech with a Neutral rating and a one-year TP of INR2,000 on the basis of DCFbased valuation (implying Sep’27E EV/EBITDA multiple of 58x).