Is the current crash a good buying opportunity, if it already factors in the worst case scenario from the draft IRDAI proposal on commission cap?
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Must listen interview.
Below is my understaning
Policybazaar revenue ₹3,635 Cr (53.4%)
Paisabazaar revenue ₹445 Cr (6.6%)
New Initiatives ₹2,715 cr (40.0%)
Total ₹6,794 cr 100%
(Policybazaar + Paisabazaar together) = ₹841 Cr adjusted EBITDA
New Initiatives revenue ₹2,715 Cr but loss of ₹116 Cr
Policybazzar includes General and Life Insurance
Life Insurance mainly term insurance
General Insurance → Health + Motor + Travel + other general insurance.
Revenue is roughly split 50:50 between GI and LI
LI no impact of proposed regulation
PB has 5000 cash, which generates 380 cr income
FY 2026 Revenue 6700 & profit 670
Less treasury 380 = 290 underlying profit
As per management GI revenue loss due to proposed changes will be appro 40%
GI revenue loss will be 1240 and hence loss in profit will be 300 cr
(₹1,240 cr revenue loss is partly cushioned by ₹650 cr of cost cuts (10% cost cut), so profit falls by ₹590 cr. That pushes the core business from a ₹290 cr profit to a ₹300 cr loss. Interest income of ₹380 cr keeps the company slightly profitable overall at about ₹80 cr PAT, down from ₹670 cr.)
If we all treasury income which is 380 cr, Pat will be 80 cr, this seems significantly lower than current PAT of 670
I may have made some error in calculation, if any, point this and I will correct it. Let’s learn together.
Disc: No investment.
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