PB Fintech Shares Slump 5% During Intraday

Shares of insurtech major Policybazaar’s parent PB Fintech dropped 5% to INR 1494.00 during the intraday trading session on the BSE today (February 17). 

The decline in its share price coincided with a drop in benchmark indices. While Nifty is trading 0.15% low at 22,893.85, Sensex is 0.22% down at 75,775.50 at 11:01 AM. 

The shares later recovered some losses and were trading 3.40% lower at INR 1516.70 apiece with the company’s market capitalisation at INR 69,655 Cr at 11:06 AM. 

The stock has ended in the red in four out of the last seven sessions. 

At the current market price, the stock has given a return of over 51% in the past one year. However in the short term, the stock has given a negative return of almost 12% in the last month, and over 7% in the last five days. 

The company, in the fourth quarter of the current financial year (Q3 FY25), reported a 92% jump in its consolidated profit after tax (PAT) to INR 71.54 Cr from INR 37.23 Cr in the year-ago quarter, buoyed by healthy insurance premium collection.

On a quarter-on-quarter basis, net profit climbed over 40% from INR 50.98 Cr. Notably, this was the fifth consecutive profitable quarter for PB Fintech. The company clocked an EBITDA profit of INR 28 Cr during the quarter under review against an EBITDA loss of INR 25 Cr in Q3 FY24.

PB Fintech’s revenue from operations zoomed 48% to INR 1,291.62 Cr in Q3 FY25 from INR 870.89 Cr in the corresponding quarter last year. Sequentially, it rose nearly 11% from INR 1,167.23 Cr.

Last month, the Goods and Services Tax (GST) department conducted a raid on a wholly-owned subsidiary of insurtech major PB Fintech on Sunday. Sources told Inc42 that the raid was in relation to PB Partners, the fintech major’s platform for insurance agents.

The company is being investigated for alleged tax evasion of about INR 80 Cr to INR 90 Cr, and the GST officials reviewed the financial records and GST filings during the raid.