PB Fintech. Q1 FY27 Results (NSE: POLICYBZR)
Signal: Earnings grew
The read
Q1FY27 marks the 8th consecutive quarter of operating margin expansion, with EBIT margin reaching 10.2% (vs 3% OPM in Q1FY26). Revenue growth of 40% YoY is sustained by 41% insurance premium growth and 33% core lending disbursal growth. PAT of ₹163 Cr (+92% YoY) is robust but partly dependent on other income (51% of PBT); core operating profit (EBIT) of ₹192 Cr reflects steady improvement.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,888.28 Cr | 40% | N/A |
| EBIT | ₹192.19 Cr | N/A | |
| Net profit | ₹162.89 Cr | 92% | |
| EPS | ₹3.53 | 92% | |
| EBIT margin | 10.2% |
P&L walk
Revenue grew 40% YoY to ₹1,888 Cr, driven by 41% growth in total insurance premium. EBITDA margin (as per XBRL) stood at 12.3%, while adjusted EBITDA margin improved to 10% from 7% YoY. Other income of ₹93 Cr contributed 51.4% of PBT, boosting PAT to ₹163 Cr (+92% YoY).
Segments
Core Online Business (Policybazaar & Paisabazaar) drives profitability with Adj EBITDA of ₹222 Cr (19% margin), while New Initiatives (PB Partners, UAE, etc.) remain loss-making at -₹36 Cr Adj EBITDA but improving from -₹31 Cr YoY. Standalone PAT of ₹407.7 Cr vs consolidated ₹162.9 Cr highlights subsidiary losses dragging group earnings.
Key positives
- PAT grew 92% YoY to ₹163 Cr, with PAT margin expanding from 6% to 9%.
- Revenue increased 40% YoY to ₹1,888 Cr, driven by 41% growth in total insurance premium.
- Protection (health + term) new premium surged 53% YoY, indicating strong product mix shift.
- Core online business reported Adj EBITDA margin of 19%, up from 14% YoY.
- Rolling 12-month renewal revenue reached ₹1,003 Cr, up 38% YoY, providing earnings visibility.
- 8th consecutive quarter of operating profit margin expansion (OPM/EBIT margin from -12% to 10.2% over last 8 quarters).
Key concerns
- Other income of ₹93 Cr constituted 51.4% of PBT, inflating PAT beyond operating profitability.
- New Initiatives continue to report negative Adj EBITDA (-₹36 Cr), though improving from -₹31 Cr YoY.
- Standalone PAT far exceeds consolidated PAT, indicating subsidiary losses (particularly in New Initiatives) are material.
Earnings quality: includes non-operating other income
Research and educational content only. Not investment advice.