PB Fintech Q2 FY27 PAT rises 43% as margin reaches 9% YoY

PB Fintech reported profit after tax, or PAT, of Rs 192 crore in Q2 FY27, up 43% from Rs 135 crore a year earlier. Total revenue increased 35% to Rs 2,178 crore, while PAT margin rose to 9% from 8%. Adjusted earnings before interest, tax, depreciation and amortisation, or EBITDA, increased 39% to Rs 216 crore.

How did PB Fintech’s Q2 FY27 profit change?

PB Fintech increased PAT by Rs 57 crore year on year to Rs 192 crore in Q2 FY27 from Rs 135 crore in Q2 FY26. PAT was 9% of revenue, compared with 8% in the corresponding quarter, following a 4% PAT margin in Q2 FY25.

Revenue rose to Rs 2,178 crore from Rs 1,614 crore, while total premium increased 38% to Rs 9,385 crore from Rs 6,824 crore. The presentation states that India insurance premium excludes goods and services tax, or GST.

Reported EBITDA rose Rs 68 crore to Rs 166 crore from Rs 98 crore, a 69% increase that outpaced revenue growth. The presentation defines adjusted EBITDA as a non-generally accepted accounting principles, or non-GAAP, measure that excludes employee stock option plan, or ESOP, charges.

What drove PB Fintech’s revenue growth in Q2 FY27?

PB Fintech’s core online business generated Rs 1,336 crore of revenue, up 39% from Rs 958 crore in Q2 FY26. Insurance revenue increased 42% to Rs 1,211 crore from Rs 852 crore, while credit revenue rose 19% to Rs 125 crore from Rs 106 crore.

Core online premium grew 38% to Rs 6,543 crore from Rs 4,746 crore. The presentation defines the core online business as Policybazaar and Paisabazaar, and reports that protection new premium, comprising health and term products, increased 42% year on year.

New initiatives produced Rs 842 crore of revenue, up 28% from Rs 655 crore, and Rs 2,842 crore of premium, up 37% from Rs 2,078 crore. The segment includes PB Partners, PB for Business, PB UAE, PB Connect, PB Pay and Pensionbazaar; its revenue growth was below the core online business’s 39% rate.

Group contribution, defined as revenue less direct employee costs and acquisition marketing, increased 36% to Rs 631 crore from Rs 464 crore. Contribution margin stayed at 29%, as the core online margin moved to 44% from 45% and the new-initiatives margin rose to 6% from 5%.

How did PB Fintech’s operating profitability develop?

PB Fintech’s adjusted EBITDA increased 39% to Rs 216 crore in Q2 FY27 from Rs 156 crore in Q2 FY26, while its adjusted EBITDA margin remained 10%. The company includes online and offline brand spending in fixed costs rather than in direct costs.

The core online business generated adjusted EBITDA of Rs 259 crore, up 41% from Rs 183 crore, with its margin unchanged at 19%. That amount exceeded group adjusted EBITDA because new initiatives recorded a Rs 42 crore adjusted EBITDA loss, compared with a Rs 27 crore loss a year earlier.

New initiatives’ adjusted EBITDA margin was negative 5%, compared with negative 4% in Q2 FY26, on revenue of Rs 842 crore. The presentation attributes the overall margin dip to early-stage PB Pay and Pensionbazaar, while stating that insurance initiatives improved adjusted EBITDA margin to negative 3.7% from negative 4.4%.

Below adjusted EBITDA, ESOP charges declined 13% to Rs 51 crore from Rs 58 crore. Depreciation rose 29% to Rs 44 crore, finance cost increased 26% to Rs 12 crore, other income rose 18% to Rs 100 crore, and associates moved to a Rs 4 crore loss from a Rs 3 crore profit.

Has PB Fintech’s profitability improved over five years?

PB Fintech’s quarterly revenue rose to Rs 2,178 crore in Q2 FY27 from Rs 280 crore in Q2 FY22, a 7.8-times increase. The presentation describes this five-year revenue expansion as a 51% compound annual growth rate, or CAGR.

Quarterly PAT moved from a Rs 204 crore loss in Q2 FY22 to a Rs 192 crore profit in Q2 FY27. The displayed figures imply a Rs 396 crore movement, while the presentation describes the increase as Rs 397 crore; PAT was a Rs 21 crore loss in Q2 FY24 before becoming a Rs 51 crore profit in Q2 FY25.

PAT margin improved from negative 73% in Q2 FY22 to negative 3% in Q2 FY24, then to 4% in Q2 FY25 and 9% in Q2 FY27. The rolling 12-month data also show PAT of Rs 806 crore for the 12 months ending September 2026, equal to 2.3% of total premium of Rs 34,939 crore.

Core online rolling-12-month revenue reached Rs 4,818 crore at September 2026, compared with Rs 1,484 crore at September 2022. Its adjusted EBITDA margin increased to 21% from negative 1% across those dates, while contribution margin was 44% at both September 2026 and the latest quarterly comparison.

Conclusion

PB Fintech’s Q2 FY27 results show revenue and premium growth translating into higher operating earnings and PAT. Core online insurance revenue rose 42%, ahead of 19% credit revenue growth, while group PAT increased 43% to Rs 192 crore and PAT margin reached 9%.

The next measure to watch is the new-initiatives loss, which widened to Rs 42 crore in Q2 FY27 from Rs 27 crore despite 28% revenue growth. Management identified PB Pay and Pensionbazaar as early-stage drivers of the segment’s negative 5% adjusted EBITDA margin, while insurance initiatives reported a year-on-year margin improvement.