PB Fintech Ltd- When Zero GST Turns Costly

1.1k Views15 Oct 2025 21:28

SUMMARY

GST removal on life and health insurance eliminates insurers’ input tax credit, forcing them to cut agent-commissions, severely hurting Policybazaar (POLICYBZ IN) , whose 68% revenue depends on these segments.
PB Fintech could have faced revenue losses upto 4.4% and 65.7% Adj. EBITDA hit if it fully absorbs GST; even 50% absorption cuts Adj.EBITDA by ~35%, based on FY25 numbers.
Moreover, trail revenues, mainly from health insurance, could shrink sharply, threatening PB Fintech’s high-margin revenue stream and delaying its INR 10 bn profit target beyond FY27.

Try Now

Begin exploring Smartkarma's AI-augmented investing intelligence platform with a complimentary Preview Pass to:

Join 55,000+ investors, including top global asset managers overseeing $13+ trillion.

Upgrade later to our paid plans for full-access.

SMARTKARMA PREVIEW PASS

By signing up, you agree to our
Terms of Use and Privacy Policy.

Already have an account? Sign In Now

Discussions

(Paid Plans Only)

Price Chart(Sign Up to Access)

Insight Stream