PB Fintech, the parent company of Policybazaar, received a thumbs-up from top brokerages after reporting a strong performance in Q1FY26, with both HSBC and Jefferies maintaining their buy ratings. The quarter was marked by margin expansion in new business verticals and healthy revenue growth, despite near-term compression in core margins.
HSBC on PB Fintech share: Margin gains from new initiatives; medium-term outlook favourable
Rating: Buy | Target Price: ₹2,250
HSBC noted that PB Fintech delivered an earnings beat in Q1FY26, primarily due to margin improvement in its new initiatives. However, it also flagged that core business margins were compressed on a year-on-year basis.
The brokerage cautioned that the company’s strategy of prioritizing growth may limit margin expansion in the near term. Still, it remains optimistic about the medium-term trajectory, given the platform’s improving unit economics and expanding addressable market.
Jefferies on PB Fintech share: 80% EBITDA surge, insurance renewals aid profitability
Rating: Buy | Target Price: ₹2,100
Jefferies highlighted that PB Fintech’s Q1 profit came in slightly ahead of expectations, supported by a rise in insurance renewals and strong performance in newer verticals. Revenues rose by 33% YoY, while contribution increased by 31%.
The standout was the adjusted EBITDA, which jumped 80% YoY, indicating robust operational leverage. The brokerage acknowledged that cash generation is currently impacted by the 1/n accounting rule, but expects normalization post September 2025.
Jefferies also sees sustained growth and profitability supporting the company’s valuation premium, with its healthcare investment seen as a strong signal of financial confidence.
Summary of brokerage views on PB Fintech:
| Brokerage | Rating | Target Price | Key View |
|---|---|---|---|
| HSBC | Buy | ₹2,250 | Earnings beat driven by new initiative margins; positive medium-term view |
| Jefferies | Buy | ₹2,100 | Profit beat, 80% EBITDA growth, healthcare investment reflects strong cash flow |
Disclaimer: This article is based on brokerage reports and is for informational purposes only. It does not constitute a recommendation or investment advice. Investors should consult their financial advisors before making investment decisions.
