Geojit Investments Limited has issued a BUY rating on PB Fintech Ltd (PolicyBazaar), projecting a target price of Rs 2,031 from the current market price of Rs 1,766. This bullish stance is supported by the company’s impressive Q2FY26 financial performance with robust revenue growth and a return to positive EBITDA after a loss last year. Key growth drivers include a booming insurance brokerage segment, expanding contributions from new business initiatives, and an ambitious strategic target of Rs 1 trillion in premiums by FY30. The revised forecast reflects sound confidence in PB Fintech’s diversified digital insurance platform and its resilient market positioning to capitalize on expanding consumer protections and lending services.

Robust Quarterly Financial Performance

PB Fintech demonstrated substantial financial improvement in Q2FY26. The company reported consolidated revenue of Rs 1,614 crore, marking a 38.2% year-over-year surge, primarily fueled by a 43% growth in its insurance brokerage services. Core online business revenue rose 26% YoY to Rs 958 crore, driven mainly by a 36% increase in insurance revenues, complemented by a 61% jump from new initiatives. EBITDA turned positive at Rs 98 crore versus a Rs 8 crore loss in Q2FY25 and the EBITDA margin expanded by 680 basis points to 6.1%. Profit after tax grew an exceptional 164.6% YoY to Rs 135 crore on the back of higher top-line growth.

Strategic Market Expansion and Business Diversification

PB Fintech’s growth strategy rests on leveraging PolicyBazaar’s online platform and expanding its footprint in the insurance and lending markets. The company’s trail revenue—a recurring revenue stream from insurance policies—reached Rs 774 crore on a rolling 12-month basis, reflecting a 39% increase. The Point of Sale Person (PoSP) network shows promising diversification, balancing motor and non-motor insurance product sales aimed at strengthening market share. Furthermore, lending disbursals, particularly credit revenue, witnessed significant growth, with total lending disbursal reaching Rs 8,570 crore in Q2FY26, doubling over the prior year despite certain pressure in core lending disbursal segments.

Valuation Upside and Revised Target Price

The research house revised PB Fintech’s earnings estimates on a conservative basis while maintaining an upbeat medium-term outlook. The company’s FY27 EBITDA is projected at Rs 1,086 crore with a margin of 12.6%, and adjusted PAT is forecasted at Rs 1,138 crore, representing an annual growth rate exceeding 69%. PB Fintech trades currently with a price-to-earnings ratio (P/E) of 124.6x for FY26E and 73.1x for FY27E, which reflects premium valuation common in high-growth fintech stocks. Using a target multiple of 10.8x on FY27E Price-to-Sales, Geojit values the stock at Rs 2,031, implying a potential upside of around 15% over the next 12 months.

Investment Considerations and Risk Outlook

Key positives for investors include PB Fintech’s market leadership in digital insurance broking, scaling recurring revenues, and a well-diversified product portfolio promoting stable profitability. The company’s ambition to achieve Rs 1 trillion in premiums by FY30 underpins long-term growth potential. However, investors must be aware of challenges such as core lending pressure, intense competitive landscape, and valuation sensitivity given the high multiples. Additionally, the effective execution of cross-border insurance products and consistent profitability over multiple quarters enhance the company’s investment appeal.

Stock Levels and Target Recommendations

Investors are advised to consider the following trading levels as per the latest research:

Given the forecasted upside and strong earnings momentum, the stock is recommended as a BUY for investors seeking exposure to a high-growth fintech enterprise transforming the Indian insurance ecosystem. Accumulating the stock on potential dips near support levels can be prudent to optimize entry points, while setting a 12-month target at Rs 2,031.