PB Fintech share price target slashed to less than half by Bernstein days after retaining Rs 2,310 target

Fresh updates from the financial markets indicate that PB Fintech shares will be in focus on Wednesday after Bernstein slashed its target price on the Policybazaar parent by as much as 53 percent to Rs 1,085 from Rs 2,310, just days after retaining the earlier target.

The revised target is almost at par with PB Fintech's Tuesday closing price of Rs 1,081, following a 43 percent collapse in the stock over four consecutive sessions since the Insurance Regulatory and Development Authority of India (IRDAI) proposed an overhaul of insurance distribution economics.

Bernstein retained its 'Outperform' rating but stated the sharp target-price reduction reflects a commission-trimmed proposal that is harsher than previously anticipated. The brokerage stated softer general insurance take rates under the proposed framework may be insufficient to cover PB Fintech's current costs.

The latest assessment marks a sharp revision from Bernstein's stance earlier the current week, when it maintained a Rs 2,310 target despite factoring in a substantial impact from the proposed regulations.

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Bernstein sees difficult choices for Policybazaar

Bernstein stated Policybazaar may need to scale back parts of its general insurance business or shift towards life insurance as it adjusts to the proposed commission caps. Its point-of-sale-person, or POSP, business is anticipated to scale down as the economics become less viable.

Health insurance could require a more fundamental change. Bernstein stated PB Fintech may have to find alternative models to capture some of the value lost through softer distribution commissions, including potentially capturing underwriting economics.

The brokerage stated mitigation strategies are available, but their impact is difficult to quantify. Bernstein keeps see a long-term expansion and value-creation opportunity for PB Fintech, but stated the next 18 months could be a critical period for the firm, with a wide range of potential outcomes.

PB Fintech shares down 43% in four sessions

PB Fintech shares closed 6.11 percent softer at Rs 1,081 on Tuesday, extending their slide to a fourth consecutive session. The stock has lost around 43 percent over those four sessions and is down 40.1 percent so far in 2026, compared with a 13.1 percent decline in the Nifty 50. The firm's market capitalisation has fallen to around Rs 50,000 crore.

The sell-off began after IRDAI proposed sweeping changes to insurance distribution commissions across health, motor and life insurance. The proposals have prompted concerns that softer commission rates could significantly reduce Policybazaar's take rates and force the firm to trimmed costs or alter its business mix.

Other research firms have additionally reassessed PB Fintech following the proposals. HSBC last week downgraded the stock to 'Hold' and trimmed its target price to Rs 1,150 from Rs 2,100, while Motilal Oswal retained a 'Neutral' rating with a target of Rs 1,150.