PB Fintech Q1 FY27: Premium Growth Stays Strong, Profitability Improves

PB Fintech opened FY27 with strong operating momentum across insurance and credit. In Q1 FY27, the group reported consolidated operating revenue of ₹1,888 crore, up 40% year on year. Profit after tax rose 92% year on year to ₹163 crore, taking PAT margin from 6% to 9%.

The headline growth driver remained insurance. Total insurance premium for the quarter increased 41% year on year to ₹8,372 crore. Management highlighted that growth was led by protection categories. New protection premium (health plus term) grew 53% year on year, with new health insurance in the core business up 59%.

Credit also showed improving trends. Total loan disbursal for the quarter was ₹4,366 crore, with core disbursal reported at ₹2,776 crore, up 33% year on year. Management stated that core credit disbursal and revenue have now grown for four consecutive quarters.

What the quarter looked like in numbers

PB Fintech’s presentation breaks the business into Core Online (Policybazaar and Paisabazaar) and New Initiatives (PB Partners, PB for Business, PB UAE and PB Connect). In Q1 FY27, core online revenue was ₹1,194 crore, while new initiatives contributed ₹694 crore.

The profitability picture continues to improve at the consolidated level, even as the company reiterated that growth remains the priority over near-term margin maximisation. The group’s adjusted EBITDA for the quarter was ₹186 crore versus ₹89 crore in Q1 FY26. Reported EBITDA was ₹139 crore versus ₹34 crore, and PAT was ₹163 crore versus ₹85 crore.

Note: Premium numbers exclude GST as stated in the presentation.

Insurance: protection-led growth and rising renewals

Management’s commentary focused on two themes: strong growth in new business, and a steadily rising renewal and trail income base.

On growth, the company said that core new insurance premium excluding savings grew 48% year on year in Q1 FY27, while core new insurance premium including savings grew 39%. Management also stated that the company has grown above 34% year on year for 13 consecutive quarters when excluding the savings category.

On recurring revenues, the company disclosed that core renewal and trail revenue on a 12-month rolling basis was ₹1,003 crore, up from ₹725 crore in the same quarter last year. It also highlighted that quarterly core insurance renewal revenue was at an ARR of ₹999 crore versus ₹673 crore in Q1 last year.

The emphasis on service continues to be central to the pitch. The presentation cites insurance CSAT consistent above 90% and about 70,000 health claims supported in Q1 FY27. The company also described expansion of a phygital model across more than 250 cities and on-ground claims support in 300 plus cities.

Credit: growth returns, with engagement expanding beyond loans

Paisabazaar’s core credit revenue growth (up 25% year on year per management) and core disbursal growth (up 33%) suggest the business is in a stronger phase than it was during earlier slowdowns. Management also shared that Paisabazaar contribution margin for the quarter was 41% and operating EBITDA was around break-even.

A second strand of the credit story is the shift from being a comparison platform to becoming a more frequent-use app. The presentation outlines engagement loops through bill payments, mobile recharges and a cashback engine (PB Wallet). It also highlights initiatives like PB Pass, positioned as a differentiated rewards proposition.

The company is also expanding into savings and wealth products. The presentation notes scaling fixed income offerings (bonds and fixed deposits) and a mutual fund daily SIP product targeted for launch in August 2026. On the earnings call, management described these offerings as engagement-first. It stated that savings could be 10% to 15% of Paisabazaar revenue at best over the next two years.

New initiatives: PB Partners scale, PB Connect pivot, UAE profitability

New initiatives contributed ₹694 crore of revenue in Q1 FY27 and reported adjusted EBITDA of negative ₹36 crore, implying an adjusted EBITDA margin of minus 5%.

The most scaled initiative is PB Partners, the agent aggregator platform. PB Fintech disclosed 500,000 plus advisors, active partner count of 1.13 lakh (up 55% year on year), presence in about 19,000 pin codes (99% of India) and Tier 2 and Tier 3 contribution of 78% of overall GWP for the quarter. PB Partners reported premium (excluding GST) of ₹1,637 crore and revenue of ₹561 crore.

Management also shared a partner concentration metric for the first time, noting that the top 100 partners account for 16% of PB Partners premium and that it intends to reduce this over time by broadening the base.

PB Connect, which is part of the secured credit ecosystem, has been re-strategised. On the call, management said the wholesale or consolidation part of PB Connect has been stopped and was zero in Q1 FY27. It said retail-side revenue for the quarter was ₹12 crore.

In the UAE, the company reported insurance premium growth of 31% year on year and stated that the UAE business was profitable in FY26 and also profitable in Q1 FY27.

The AI operating system: scale metrics and operating claims

PB Fintech devoted a large portion of the presentation to its AI and tech stack. It highlighted the scale of operations, including customer interactions in the range of about 10 crore per month and large volumes of calls, emails, documents and tickets processed daily.

The company stated that 100% calls are transcribed using in-house on-prem ASR across Indian languages, and that 2.5 million transcription hours were recorded in Q1 FY27. It also cited advisor productivity and conversion improvements linked to AI-driven intent calling and internal tools such as Ask Genie.

Management’s commentary also framed AI investments as outcome-driven rather than token-cost driven. The stated focus was on conversion, productivity and customer experience, rather than near-term headcount optimisation.

Disclosures investors should keep in view

The quarter also includes notable audit and regulatory disclosures.

The auditor’s review report draws attention to IRDAI inspections and show-cause notices at Policybazaar Insurance Brokers Private Limited. It notes that a penalty of ₹500 lakhs was paid in September 2025, and that updates for other inspection reports are awaited.

The auditor also draws attention to tax and investigation proceedings at the Paisabazaar subsidiary, including a past DGGI search and income tax survey proceedings. The notes describe amounts deposited under protest and that appeals have been filed at the appellate forums.

In addition, the group’s financials include restatements related to the merger of Makesense Technologies, with the NCLT order dated August 29, 2025 and appointed date April 1, 2022.

Takeaways

PB Fintech’s Q1 FY27 results show a business that is scaling while improving profitability. Insurance continues to lead growth, especially in protection categories, and the renewal and trail revenue base is becoming more material. Credit has returned to growth, and management is building engagement through payments and savings products.

At the same time, new initiatives remain in investment mode and are still loss-making at an EBITDA level. Investors should also track the regulatory and tax matters disclosed in the auditor’s report and notes.

Overall, the quarter reinforces a consistent management message. The company is prioritising growth, investing in brand, service and AI capabilities, and expecting operating leverage to play out over time rather than optimising for near-term margins.