PB Fintech Posts Fourth Profitable Quarter In A Row, Revenue Soars 43% YoY

Insurtech major Policybazaar’s parent PB Fintech reported a consolidated net profit of INR 50.98 Cr in the second quarter (Q2) of the fiscal year 2024-25 (FY25) against a loss of INR 21.11 Cr in the year-ago period.

However, profits tanked 15% sequentially from INR 59.98 Cr in the June quarter of the ongoing fiscal. Notably, this was the fourth consecutive profitable quarter for PB Fintech. 

Meanwhile, PB Fintech’s revenue from operations jumped more than 43% year-on-year (YoY) to INR 1,167.2 Cr in Q2 FY25 from INR 811.6 Cr in the year-ago quarter. On a sequential basis, it jumped 15% from INR 1,010.5 Cr in Q1 FY25. 

The company attributed the jump in the top line to consistent revenue growth and improving margins. While the core online business, which includes PolicyBazaar and Paisabazaar, contributed INR 767 Cr (up 28% YoY) to the group’s operating revenue in Q2 FY25, new initiatives arm’s revenues rose 87% YoY to INR 400 Cr.

The insurtech giant’s total adjusted EBITDA profitability improved further by 4.3X to INR 56 Cr in the quarter under review compared to INR 13 Cr in the year-ago period. 

The fintech’s total insurance premium stood at INR 5,450 Cr in Q2 FY25, up 57% YoY, led by broad-based growth across health and life insurance segments. 

In a filing with the BSE, the company highlighted that it disbursed loans worth INR 4,237 Cr in the quarter under review and issued 1.46 Lakh cards. 

“Our core health and life insurance businesses are growing ahead of expectations. In anticipation of this steady growth, we have invested ahead of sales in operating expenses which we expect will pay back in the second half of the year,” said the company in its earnings release.

A Closer Look At The Company’s Expenses

PB Fintech’s total expenses zoomed more than 30% YoY in Q2 FY25 to INR 1,213.4 Cr from INR 930.22 Cr in the year-ago period. This jump came primarily on the back of a steep rise in “other expenses”, which shot up 77% YoY.

Employee Cost: PB Fintech’s employee benefit expenditures rose 20% YoY to INR 507.57 Cr in the September quarter against INR 422.84 Cr in Q2 FY24.

Other Expenses: The fintech major spent INR 355.23 Cr towards other expenses during the fiscal compared to INR 200.48 Cr in the quarter ended September 2024. 

Advertising & Promotional Expenses: The company spent INR 278 Cr under this bucket in Q2 FY25, up over 12% from INR 247.36 Cr in the year-ago period. 

Shares of PB Fintech closed 4.24% lower at INR 1,640.2 on the BSE on Tuesday (November 5).