1. At a Glance
India’s #1 online insurance and credit marketplace, Policybazaar is finally showing profits—but the P/E? Still a nosebleed 271. From -₹10 EPS to ₹7.7 in 3 years. Classic startup glow-up.
2. Introduction with Hook
PB Fintech is like that college kid who blew their savings on Red Bull and pizza, but suddenly shows up in a suit with a job at McKinsey. Profitable now, after years of losses, and expanding globally—but priced like it’s curing cancer.
- ₹85,403 Cr Market Cap
- EPS FY25: ₹7.69 (after 7 years of red ink)
- 93% Market Share in Online Insurance Distribution
3. Business Model (WTF Do They Even Do?)
It’s basically the Flipkart for insurance and loans, minus warehouse headaches:
- Policybazaar.com – Compare & buy insurance online.
- Paisabazaar.com – Loans, credit cards, personal finance marketplace.
They earn by:
- Commission on policy/loan sold
- Lead generation for insurers/lenders
- Renewals, cross-selling, and fintech consulting
The more you click, the more they cash in.
4. Financials Overview
| ₹ Cr | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Revenue | 1,425 | 2,558 | 3,438 | 4,977 |
| Net Profit | -833 | -488 | 64 | 353 |
| OPM % | -63% | -26% | -5% | 2% |
| ROE % | -18.5% | -10.8% | 1.5% | 5.13% |
From -₹833 Cr loss to ₹353 Cr profit in 3 years. Respect. Now, can they sustain it?
5. Valuation
- P/E: 271x
- Book Value: ₹140
- Price/BV: 13.3x
- EPS FY25: ₹7.69
Method 1: P/E Normalized (Assuming ₹15–₹20 EPS FY27)
FV = ₹1,200 – ₹1,600 (at 60–80x forward P/E)
Method 2: EV/Sales Method (5x–7x on FY25 revenue ₹4,977 Cr)
FV = ₹1,100 – ₹1,550
Blended Fair Value Range: ₹1,200 – ₹1,600
CMP ₹1,860 = Expensive. You’re paying for future dreams, not current cash.
6. What’s Cooking – News, Triggers, Drama
- Q1FY26 Profits at ₹171 Cr – up >100% YOY
- Paisabazaar Middle East LLC launched in Dubai
- 87 million registered users and counting
- EBITDA turns positive — finally.
- Risk: Overdependence on commission + fierce competition from Zerodha-backed Ditto and offline agents.
7. Balance Sheet
| Item | Mar 2025 (₹ Cr) |
|---|---|
| Equity Capital | ₹92 Cr |
| Reserves | ₹6,340 Cr |
| Borrowings | ₹322 Cr |
| Other Liabilities | ₹775 Cr |
| Total Liabilities | ₹7,529 Cr |
| Fixed Assets | ₹418 Cr |
| Investments | ₹2,173 Cr |
Takeaway:
Asset-light, cash-rich, minimal borrowings — fintech perfection.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY23 | ₹(299) Cr | ₹46 Cr | ₹(42) Cr | ₹(295) Cr |
| FY24 | ₹9 Cr | ₹301 Cr | ₹(57) Cr | ₹253 Cr |
| FY25 | ₹(183) Cr | ₹458 Cr | ₹(73) Cr | ₹202 Cr |
CFO still patchy, but investing gains + cash runway gives breathing room.
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE % | -8% | 2% | 5.9% |
| ROE % | -10.8% | 1.5% | 5.13% |
| OPM % | -26% | -5% | 2% |
| EPS ₹ | ₹-10.82 | ₹1.48 | ₹7.69 |
| Payout % | 0% | 0% | 0% |
Verdict: ROE crawling up. No dividend yet. Profit is still delicate.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | OPM % | Net Profit | EPS |
|---|---|---|---|---|
| FY22 | ₹1,425 Cr | -63% | ₹-833 Cr | ₹-18.5 |
| FY23 | ₹2,558 Cr | -26% | ₹-488 Cr | ₹-10.8 |
| FY24 | ₹3,438 Cr | -5% | ₹64 Cr | ₹1.48 |
| FY25 | ₹4,977 Cr | 2% | ₹353 Cr | ₹7.69 |
From disaster to decency. Now needs consistency.
11. Peer Comparison
| Company | CMP ₹ | P/E | ROE % | PAT ₹ Cr | Revenue ₹ Cr |
|---|---|---|---|---|---|
| PB Fintech | 1,860 | 271 | 5.1% | ₹353 | ₹4,977 |
| Paytm | 988 | NA | -10.3% | ₹-1,458 | ₹6,900 |
| Infibeam | 16 | 25.6 | 6.2% | ₹222 | ₹3,992 |
| MOS Utility | 250 | 49.9 | 15.5% | ₹12.5 | ₹616 |
Takeaway:
PB is best of fintech breed… but priced for perfection. Risk-reward tilted.
12. Miscellaneous – Shareholding, Promoters
| Category | Mar 2025 |
|---|---|
| FIIs | 45.93% (down from 51.58%) |
| DIIs | 22.95% (uptrend continues) |
| Public | 30.85% |
| Promoter Stake | 0% (it’s a professionally managed company) |
- DII love increasing
- FII slightly profit-booking
- Retail? Still believes in the ₹10,000 cr dream
13. EduInvesting Verdict™
Policybazaar is the fintech phoenix—burned cash for years, rose from red, and is now a ₹85K Cr empire.
But… is the future already priced in?
If they keep growing insurance & loan sales with discipline, this might be the Infosys of fintech. If not, it could be the Quikr of IPOs.
For now: It’s less about valuation, more about vision.
Metadata
– Written by EduInvesting Research Desk | July 15, 2025
– Tags: PB Fintech, Policybazaar, Paisabazaar, Fintech, Insurtech, Q1FY26, Profitability Turnaround, High P/E Stocks, Startup to Scaleup
