Prime Highlights
- PB Fintech shares gained over 2% after Kotak Institutional Equities upgraded the stock, citing improved confidence and reduced uncertainties.
- The company’s strong business performance and growth outlook make it more attractive for long-term investors.
Key Facts
- New business premium grew 45% year-on-year in Q3 FY2026, with stable commission levels at around 20.8%.
- Market share is expected to rise from 10% in FY2026 to 18% by FY2032, with profit projected to reach ₹1,100 crore by FY2027.
Background:
Shares of PB Fintech rose over 2% on Friday after Kotak Institutional Equities upgraded its rating on the stock from “Reduce” to “Add,” citing a better risk-reward balance and easing concerns around regulations and expansion plans.
The brokerage said the company had underperformed in recent months despite steady business growth. It noted that earlier worries about a potential international insurance distribution acquisition and changes in commission regulations have started to fade, improving investor confidence in the stock’s long-term prospects. Kotak maintained its fair value estimate at ₹1,725 per share.
PB Fintech, which runs Policybazaar, saw strong growth in its insurance business, mainly due to higher demand for term and health plans. Its new business premium rose 45% year-on-year in the third quarter of FY2026, while commission stayed steady at about 20.8%.
Kotak Institutional Equities expects the company to continue growing in the coming months, even if commission rates slowly decline. It added that PB Fintech’s diversified insurer partnerships, consistent cash flows, and execution track record position it well to manage regulatory changes.
PB Fintech recently postponed a board meeting on its international acquisition plan, suggesting it may take a different approach to expansion.
According to Kotak Institutional Equities, the company’s profit could rise to ₹1,100 crore in FY2027 from ₹680 crore in FY2026, helped by higher revenue and better margins. Its market share is also expected to grow to 18% by FY2032 from 10% in FY2026.
On the BSE, the stock traded at around ₹1,500 per share, within its 52-week range of ₹1,312 to ₹1,977.
