PB Fintech shares gain 2% after Q1 results. Why Morgan Stanley, Nomura see up to 25% downside

Shares of Policybazaar-parent PB Fintech gained 2% to Rs 1,665.50 on the BSE on Thursday after the company reported a 92% year-on-year surge in net profit to Rs 163 crore for the first quarter of FY27, helped by strong growth in insurance premium, higher operating revenue and better margins.

PB Fintech’s PAT margin improved to 9% in the April-June quarter of the ongoing financial year 2027, from 6% reported in the corresponding quarter of FY26. Its operating revenue increased 40% YoY to Rs 1,888 crore, while total insurance premium grew 41% YoY to Rs 8,372 crore during the quarter under review.

Growth was led by the protection business, which includes health and term insurance. New protection premium rose 53% YoY, while new health insurance premium grew 59%. The company said its core online insurance premium grew 41% YoY in Q1FY27. Core new insurance premium, excluding the savings business, rose 48%. Including savings, core new insurance premium grew 39%.

Morgan Stanley on PB Fintech share price

Morgan Stanley, however, maintained its ‘Underweight’ rating on the shares of PB Fintech, with a target price of Rs 1,215 apiece, implying 25% downside potential from the stock’s previous closing price.

The international brokerage noted that the company’s adjusted EBITDA beat estimates on higher revenue, while margins remained in line, ET Now reported. It added that core new business premium growth remained strong, led by protection and health insurance.

Morgan Stanley highlighted that premium growth is expected to moderate from Q3 onwards due to a high base effect, the report said, adding that the international brokerage maintained its ‘Underweight’ call citing valuations and regulatory uncertainty around commissions.

Also read | PB Fintech Q1 Results: Policybazaar parent’s profit soars 92% to Rs 163 crore as insurance premium grows 41%

Nomura on PB Fintech share price

Nomura maintained a ‘Neutral’ call on the shares of PB Fintech, with a target price of Rs 1,590 apiece, implying 2% downside potential. It noted that the company’s Q1 earnings largely beat estimates, however, regulatory uncertainty still looms large.

Management remains focused on scaling up the existing business and expanding into new segments, Nomura noted. However, it reiterated that the fair price of PB Fintech could see a 30% hit in case the regulator decides to make long-term policies commissions backended. “We note that regulation is the biggest trigger for the stock in either direction,” it said.

Motilal Oswal on PB Fintech share price

Motilal Oswal Financial Services said the company reported a strong topline growth, with operations efficiency driving the profit beat. It increased its revenue estimates for the company by up to 3% and profit expectations by up to 5%, considering the robust Q1 performance.

PB Fintech continues to deliver volume growth above its guidance of 30%, driven by GST exemption-led boost in term and health insurance, the brokerage said, adding that strong momentum in the protection segment, along with stronger renewal growth and productivity improvement, resulted in robust profitability. Additionally, the company continues witness recovery in unsecured lending and stable momentum in retail secured lending, it added.

Motilal Oswal however noted that uncertainty around commission regulations remains a key risk. It maintained its ‘Neutral’ rating on the stock, but reduced its target price to Rs 1,820 apiece, implying 12%upside potential from the stock’s previous closing price of Rs 1,620 apiece on NSE.

PB Fintech share price

PB Fintech shares had gained over 1% on Wednesday, ahead of the release of the results. The stock has gained around 2% in a week and 2.5% in a month, but is overall down more than 10% in 2026 so far.

In the longer term, PB Fintech shares have fallen around 7% in one year, but delivered 107% returns over three years. The company has a market capitalisation of nearly Rs 55,833 crore.

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