What is the story about?
Shares of PB Fintech are trading with losses of 3% on Tuesday, February 3, after the company reported a strong set of December quarter earnings and announced plans to raise funds through a qualified institutional placement (QIP) to support acquisitions.
The company said its board will meet on February 5 to consider fundraising via QIP, with the proceeds earmarked for inorganic growth opportunities.
PB Fintech indicated that the proposed capital raise is aimed at funding an acquisition, potentially in the insurance distribution space in international markets.
The company is also evaluating expansion opportunities both domestically and overseas, with possible geographies including Southeast Asia, the Middle East and Europe.
Management said that any acquisition would be guided by a clear checklist, focusing on large and stable markets where the company has some level of operational familiarity and where value creation is possible.
Such acquisitions are expected to be EPS accretive. PB Fintech also clarified that it has no plans to enter insurance manufacturing at this stage.
The company currently has cash of around ₹2,100 crore on its books.
On the earnings front, PB Fintech posted a sharp improvement in profitability for the December quarter.
Net profit rose to ₹189 crore from ₹71 crore a year ago, while revenue grew 37% year on year to ₹1,771 crore compared with ₹1,291 crore.
EBITDA jumped to ₹158.8 crore from ₹27.6 crore, with margins expanding to 9% from 2.1% in the same period last year.
PB Fintech shares ended 4.58% lower on Monday at ₹1,545. The stock is down 15% so far in 2026.
The company said its board will meet on February 5 to consider fundraising via QIP, with the proceeds earmarked for inorganic growth opportunities.
PB Fintech indicated that the proposed capital raise is aimed at funding an acquisition, potentially in the insurance distribution space in international markets.
The company is also evaluating expansion opportunities both domestically and overseas, with possible geographies including Southeast Asia, the Middle East and Europe.
Management said that any acquisition would be guided by a clear checklist, focusing on large and stable markets where the company has some level of operational familiarity and where value creation is possible.
Such acquisitions are expected to be EPS accretive. PB Fintech also clarified that it has no plans to enter insurance manufacturing at this stage.
The company currently has cash of around ₹2,100 crore on its books.
On the earnings front, PB Fintech posted a sharp improvement in profitability for the December quarter.
Net profit rose to ₹189 crore from ₹71 crore a year ago, while revenue grew 37% year on year to ₹1,771 crore compared with ₹1,291 crore.
EBITDA jumped to ₹158.8 crore from ₹27.6 crore, with margins expanding to 9% from 2.1% in the same period last year.
PB Fintech shares ended 4.58% lower on Monday at ₹1,545. The stock is down 15% so far in 2026.
