PB Fintech shares hit 52-week low after Q2 results; why is the stock falling?
Jefferies said PB Fintech's Q2 FY27 revenue grew 35 per cent year-on-year (YoY), ahead of its estimates. However, adjusted EBITDA stood at Rs 220 crore, up 39 per cent YoY, missing estimates due to higher expenses.
- Nov 2, 2026,
- Updated Nov 2, 2026 3:19 PM IST
Shares of PB Fintech Ltd, the parent company of Policybazaar and Paisabazaar, declined 7.67 per cent in Monday's trade to hit a 52-week low of Rs 923.35. The stock was last seen trading 7.33 per cent lower at Rs 926.70. At this level, it has crashed 42.10 per cent over the past three months.
The decline follows the company's September quarter (Q2 FY27) earnings announcement released after market hours on Friday.
Jefferies said PB Fintech's Q2 FY27 revenue grew 35 per cent year-on-year (YoY), ahead of its estimates. However, adjusted EBITDA stood at Rs 220 crore, up 39 per cent YoY, missing estimates due to higher expenses.
The global brokerage noted that the company discussed several measures to offset potential regulatory risks, including expanding non-insurance revenue, improving productivity and aligning costs with net present values (NPVs).
However, Jefferies flagged the risk of slower growth in the second half of FY27, as the GST tailwinds are behind. It cut its FY27 estimated profit after tax (PAT) by 3 per cent to factor in higher operating expenses. The brokerage has a sum-of-the-parts (SOTP)-based target price of Rs 1,540, valuing the company at 26 times its December 2028 estimated EV/adjusted EBITDA.
Motilal Oswal Financial Services (MOFSL) largely maintained its revenue estimates but cut its EBITDA estimates by 9 per cent and 10 per cent for FY27 and FY28, respectively, citing elevated costs in Q2 FY27.
"Lower tax structure has led to a 3 per cent/2 per cent decrease in PAT estimates for FY27/28. The final distribution reforms remain a key monitorable. We reiterate our Neutral stance with a revised TP of Rs 1,050 (based on 50x average of current and worst-case FY28E EPS)," the brokerage said.
JM Financial, meanwhile, said the Q2 performance was secondary to IRDAI's consultation paper, which proposes commission caps significantly below current take rates and has weighed on the stock since the draft was released.
"Although the draft guidelines are still awaited, we build the proposed framework into our model from FY28E. We assume blended take rates reset towards the capped levels; PB Partners is discontinued as the model is expected to turn unviable and costs align to the lower customer NPV. On this basis, we cut FY28/29E revenue estimates by 55 per cent/53 per cent and EPS estimates by 55 per cent/40 per cent. We value PB Fintech at 47.5x Sep'28E EBITDA with TP of Rs 1,200 (earlier Rs 1,780) and upgrade to BUY," it stated.
The Insurance Regulatory and Development Authority of India (IRDAI) has released a consultation paper proposing changes to commissions, Expenses of Management (EoM) and distribution norms in the insurance sector. The proposed changes could affect the commission structure for insurance distributors across products.
Shares of PB Fintech Ltd, the parent company of Policybazaar and Paisabazaar, declined 7.67 per cent in Monday's trade to hit a 52-week low of Rs 923.35. The stock was last seen trading 7.33 per cent lower at Rs 926.70. At this level, it has crashed 42.10 per cent over the past three months.
The decline follows the company's September quarter (Q2 FY27) earnings announcement released after market hours on Friday.
Jefferies said PB Fintech's Q2 FY27 revenue grew 35 per cent year-on-year (YoY), ahead of its estimates. However, adjusted EBITDA stood at Rs 220 crore, up 39 per cent YoY, missing estimates due to higher expenses.
The global brokerage noted that the company discussed several measures to offset potential regulatory risks, including expanding non-insurance revenue, improving productivity and aligning costs with net present values (NPVs).
However, Jefferies flagged the risk of slower growth in the second half of FY27, as the GST tailwinds are behind. It cut its FY27 estimated profit after tax (PAT) by 3 per cent to factor in higher operating expenses. The brokerage has a sum-of-the-parts (SOTP)-based target price of Rs 1,540, valuing the company at 26 times its December 2028 estimated EV/adjusted EBITDA.
Motilal Oswal Financial Services (MOFSL) largely maintained its revenue estimates but cut its EBITDA estimates by 9 per cent and 10 per cent for FY27 and FY28, respectively, citing elevated costs in Q2 FY27.
"Lower tax structure has led to a 3 per cent/2 per cent decrease in PAT estimates for FY27/28. The final distribution reforms remain a key monitorable. We reiterate our Neutral stance with a revised TP of Rs 1,050 (based on 50x average of current and worst-case FY28E EPS)," the brokerage said.
JM Financial, meanwhile, said the Q2 performance was secondary to IRDAI's consultation paper, which proposes commission caps significantly below current take rates and has weighed on the stock since the draft was released.
"Although the draft guidelines are still awaited, we build the proposed framework into our model from FY28E. We assume blended take rates reset towards the capped levels; PB Partners is discontinued as the model is expected to turn unviable and costs align to the lower customer NPV. On this basis, we cut FY28/29E revenue estimates by 55 per cent/53 per cent and EPS estimates by 55 per cent/40 per cent. We value PB Fintech at 47.5x Sep'28E EBITDA with TP of Rs 1,200 (earlier Rs 1,780) and upgrade to BUY," it stated.
The Insurance Regulatory and Development Authority of India (IRDAI) has released a consultation paper proposing changes to commissions, Expenses of Management (EoM) and distribution norms in the insurance sector. The proposed changes could affect the commission structure for insurance distributors across products.