India’s insurance sector has grown at a steady pace. The market has expanded at around 17% compounded annual growth rate (CAGR) over the past two decades. It is projected to have reached about Rs. 19.3 lakh crore by FY26. Growth is coming from better awareness, regulatory push, and higher private participation.
This growth is not limited to insurers. It is also helping the businesses that sell these policies. Digital platforms are changing how insurance is bought. Customers can compare and purchase policies online. Distribution is shifting from agents to platforms.
This makes insurance distribution an interesting space. These businesses do not take underwriting risk. They operate with lower capital. Yet they benefit directly from rising policy volumes. As adoption increases, their earnings can scale faster.
The selected companies are among the few listed platforms that meaningfully participate in this shift. They already operate at scale and have large user bases. Insurance is not a standalone product for them. It is part of a broader financial ecosystem. This allows them to cross-sell at lower cost and improve conversion. The selection is therefore limited to platforms where distribution is active and scalable, rather than including businesses where insurance remains incidental.
#1 PB Fintech: Scaling The Core Insurance Engine
PB Fintech, popularly known as Policy Bazar, is India’s largest online platform for insurance and lending products through its flagship brands – Policybazaar and Paisabazaar platforms through which they provide convenient access to insurance, credit and other financial products.
PB Fintech reported a strong performance in Q3 FY26, reflecting continued momentum in the digital insurance distribution space. Operating revenue rose 37% year-on-year (YoY) to Rs 1,771 crore, while net profit increased 165% to Rs 189 crore. Growth was driven by higher insurance premiums, which stood at Rs 7,965 crore, up 45% YoY. The company continues to gain share in a market where distribution remains the key driver of insurance penetration.
The Core Engine: Why Health & Protection Premiums are Surging
The core insurance business remained the main growth engine. New protection premium grew 68% YoY, with health insurance growing 79%. This indicates a shift towards pure risk products, where digital platforms are increasingly influencing customer decisions. The company’s ability to assist customers during claims and ensure better disclosure has helped build trust. This has supported higher conversions and repeat business in a category that is still underpenetrated in India.
The distribution model is also expanding beyond metros. The company is increasing its presence in smaller towns through its agent aggregator platform. It is also building a hybrid model with physical advisory support in new cities. This is helping tap new customer segments, especially in Tier 3 and beyond. At the same time, new initiatives are nearing break-even, indicating improving operating leverage as scale increases.
Beyond Metros: The Global & Hybrid Expansion Strategy
PB Fintech is also looking at international expansion. The company is evaluating opportunities across the Middle East, Southeast Asia and Europe. Its UAE business has already shown traction, with premium growth of 62% YoY and consistent profitability over the past few quarters. Management believes its digital distribution model can be replicated in global markets that lack innovation in insurance distribution.
Going ahead, growth is likely to be driven by rising insurance adoption and increasing shift to online platforms. However, the business remains dependent on demand generation and customer acquisition. Margins in distribution remain thin, and scale remains the key lever. The company appears well placed, but sustaining high growth will depend on continued execution and expansion into new markets.
In the past year, the share price of PB Fintech is down 9.5%.
PB Fintech 1 Year Share Price Chart
#2 One97 Communications (Paytm): The Payments-to-Insurance Pivot
Incorporated in 2000, One 97 Communications (Paytm) is India’s leading digital ecosystem for consumers as well as merchants.
One 97 Communications reported steady improvement in its financial performance in Q3 FY26. Revenue stood at Rs 2,194 crore, up 20% YoY. The increase was supported by higher monetisation in payments and financial services.
The Turnaround Story: From Payments to High-Margin Financial Services
The company also reported a sharp improvement in profitability. Net profit came in at Rs 225 crore, compared to a loss of Rs 208 crore in the same quarter last year, marking a strong turnaround. The growth was driven by better cost control and operating leverage as the business scales.
The core strategy remains focused on payments-led financial services. The company continues to deepen its merchant ecosystem, with device-led distribution and subscription-based models driving monetisation. Growth is now increasingly coming from cross-selling financial products such as credit, insurance and wealth services to this base. This reflects the broader industry trend where distribution platforms, rather than product manufacturers, are capturing value as financial penetration rises.
On the consumer side, the company is rebuilding its credit business. The ‘Buy Now, Pay Later’ product has gained early traction, with customer additions picking up within months of launch. At the same time, the company is shifting away from pure distribution of loans towards payment-linked credit products. This approach is aimed at improving customer stickiness and long-term monetisation.
Rebuilding Credit: The Pivot to Payment-Linked Lending
Expansion efforts are also visible across segments. The company is scaling its online merchant business after a period of slowdown and is investing in enterprise sales. It is also building out its wealth and investment platform, with a focus on becoming a full-stack financial services provider. Internationally, the company has set up entities in select markets and is expected to announce partnerships in the coming quarters, though the focus remains on merchant-led expansion rather than remittance or diaspora-led plays.
From an industry perspective, the business continues to operate in a high-volume, low-margin environment. Customer acquisition remains critical, and monetisation depends on cross-selling multiple products. While growth visibility remains strong, near-term profitability may be influenced by regulatory changes and investment cycles. The company’s ability to scale distribution and improve monetisation will be key to sustaining momentum in the coming quarters.
In the past year, share price of One 97 Communications is up 21.9%.
One 97 Communications 1 Year Share Price Chart
#3 5paisa Capital: Expanding Beyond Broking
Incorporated in 2007, 5paisa Capital provides broking services in the Indian capital markets.
5paisa Capital reported a steady performance in Q3 FY26, supported by improved retail participation in the markets. Total revenue for the quarter stood at Rs 79 crore, down from Rs 85 crore reported a year ago. Profit after tax came in at Rs 12 crore, down from Rs 16 crore reported a year ago.
Scaling Volume: How Retail Participation is Driving ADTO Growth
The core broking business remained the primary driver. Broking revenue rose to Rs 37.1 crore, while allied income stood at Rs 19.8 crore. Activity levels improved during the quarter, with notional average daily turnover rising 24% sequentially to Rs 3.31 trillion. The company added around 78,000 new customers, taking its total base to over 5 million. Management continues to focus on improving the quality of acquisition, with emphasis on higher lifetime value and faster payback.
Alongside broking, the company is gradually building a broader distribution-led platform. Mutual fund assets under management grew 13% sequentially to Rs 1,868 crore, while the client funding book also expanded. These segments, along with credit and other financial products, are expected to support diversification of revenue over time. This reflects a broader shift in the industry, where platforms are moving beyond trading to distributing financial products, including insurance.
Tech-First Efficiency: Enhancing the User Experience for Long-Term Value
On the product side, the company continued to invest in technology and user experience. Several platform enhancements were rolled out during the quarter to improve trading efficiency and onboarding. Features such as faster account activation, improved margin funding access, and better analytics tools are aimed at increasing engagement and monetisation. These changes are also helping the platform scale without a proportionate increase in costs.
Going ahead, growth is likely to remain linked to retail participation and the company’s ability to deepen engagement across its platform. While broking continues to dominate revenue, the long-term opportunity lies in expanding distribution of financial products. The company remains in an early stage of this transition, and execution across these segments will be key to sustaining profitability.
In the past year, share price of 5paisa Capital is down 26.4%.
5paisa Capital 1 Year Share Price Chart
Comparative Returns: The Efficiency Gap
Let’s now turn to the valuations of the companies in focus, using the Enterprise Value to EBITDA multiple as a yardstick.
Valuations of Companies in focus
| Sr No | Company | EV/EBITDA Ratio | 5-Year Average EV/EBITDA | Industry Median | ROCE | ROE |
| 1 | PB Fintech | 85.2 | -16.5 | 10.4 | 5.9% | 5.1% |
| 2 | One 97 Communications | 44.9 | -33.2 | -10.1% | -10.3% | |
| 3 | 5paisa Capital | 2.9 | 8.9 | 5.7 | 13.6% | 11.9% |
In terms of return ratios, the difference is quite visible. 5paisa Capital has return on capital employed (ROCE) of 13.6% and return on earnings (ROE) of 11.9%. PB Fintech is lower at ROCE of 5.9% and ROE of 5.1%. While One 97 Communications reported profit in the past three quarters, its return ratios are still negative with ROCE at -10.1% and ROE at -10.3%.
Valuations are not aligned with current profitability. PB Fintech is at 85.2 times EV/EBITDA, which is much higher than the industry median of 10.4. One 97 Communications is at 44.9, even though earlier numbers have been negative. 5paisa Capital is at 2.9, which is below its 5-year average of 8.9 and also below the industry median of 5.7.
Insurance demand is rising, and platforms are starting to play a bigger role. These companies do not take underwriting risk. They focus on selling policies and other financial products. This helps them scale without heavy capital and improve customer stickiness.
PB Fintech continues to build on its insurance platform. One 97 Communications is using its app to push financial services, including insurance. 5paisa Capital is still early in this shift but is gradually adding more products beyond broking. The space is still evolving, and execution will be important.
Conclusion
The story is still playing out. Insurance demand is picking up, and these platforms are part of that shift. They are not taking risk. They are simply helping customers buy. That sounds simple, but doing it at scale is not easy.
The market is already giving very different valuations. Some stocks are expensive, others are not. So the gap between price and performance is quite wide.
From here, the focus should stay on basic things. Are users growing. Are more of them actually buying products. And are profits improving with scale. That is what will decide how this space shapes up.
You can track how these are progressing by adding stocks to your watchlist.
Disclaimer:
Note: We have relied on data from www.Screener.in throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Ekta Sonecha Desai has a passion for writing and a deep interest in the equity markets. Combined with an analytical approach, she likes to deep dive into the world of companies, studying their performance, and uncovering insights that bring value to her readers.
Disclosure: The writer and her dependents do not hold the stocks discussed in this article.
The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.