PB Fintech shares in focus as analysts mixed post Q2 results; check targets

Shares of PB Fintech are in focus on Monday, November 2, after global investment banking firms have mixed views post the company's second quarter results.

While HSBC has a "hold" recommendation, Nomura has a "neutral" rating, Bernstein has an "outperform" rating on the PB Fintech stock, and see an upside potential of 10%.

HSBC

HSBC has a "hold" rating and a target price of ₹1,100 per share. This indicates an upside of 10% from its previous closing price of ₹1,000.1 apiece.

HSBC said the second quarter earnings were a miss, which was driven by elevated operating costs. Meanwhile, its customer acquisition rate and growth momentum were healthy.

It added that the ongoing uncertainty is likely to keep the stock sideways. The clarity on regulations and strategic initiatives could remove the overhang.

The Insurance Regulatory and Development Authority of India (IRDAI) has proposed changes to insurance distribution and commission norms to reduce the rising costs and protect policyholders.

HSBC has cut its estimated FY27-29 earnings per share (EPS) by 2-4%.

Nomura

Nomura has a "neutral" rating and a target price of ₹1,100 as well on the PB Fintech stock.

It said the company's September quarter net profit beat its estimates by 13% Its EBITDA margin stock at 9,92% in the second quarter compared to expectations of 9%.

Nomura said the EBITDA margins expanded by 25 basis points from the previous year as the contribution margins were flat. However, the expenses outside the contribution as percentage of revenues declined by 140 basis points.

With premium growth of 31% from the year-ago period in the first half of the financial year 2027, the company is running ahead of its full year premium growth estimates of 25% for FY27, Nomura said.

Policybazaar and other insurance platforms' growth momentum remains robust, with a high base estimated for the second half of FY27, but the PB Fintech management is optimistic about two-year compound annual growth rate (CAGR) trends, Nomura said.

The management has set a target to evolve the business in 1,000 days, it added.

Bernstein

Bernstein has an "outperform" rating and a target price of ₹1,085 per share. This indicates an upside of 8.5% from its previous closing price.

It said PB Fintech's second quarter print was decent but what mattered was regulation impact and mitigation measures.

The company was restrained in their replies, given the discussion paper is under consultation and the mitigation plans are in the discussion stage with the regulator.

It has laid down a 1,000-day agenda, focusing on exploring non-insurance revenues, monetizing ancillary services and building cost discipline, Bernstein said.

PB Fintech has avoided committing to the idea, given regulatory constraints, but seemed inclined to explore becoming an insurer, it added.

Stock reaction

Of the 25 analysts who have coverage on PB Fintech, 15 have "buy" ratings, six have "hold" ratings and four have "sell" recommendations.

Shares of PB Fintech ended the previous session ₹1.8% lower at ₹1,000.1 apiece. The stock has gained 2.5% in the past month but has fallen 44.6% in 2026, so far.

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