PB Fintech Q3 Earnings: Profit Jumps 88.2% YoY

resr 5paisa Research Team

Last Updated: 31st January 2025 - 03:51 pm

2 min read
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PB Fintech, the parent company of financial services platforms Policybazaar and Paisabazaar, announced its financial results for the third quarter of the fiscal year 2025 on Thursday. The company recorded an 88.2% surge in net profit for the quarter ending December 2024, reaching ₹71.5 crore, compared to ₹38 crore in the same period the previous year.

As of 3:00 PM IST, the PB Fintech share price was at ₹1,723.90 on the NSE.

Revenue saw a significant 48.3% jump, rising to ₹1,291.6 crore in Q3 FY25 from ₹870.9 crore in Q3 FY24. Additionally, the company reversed its EBITDA performance, reporting a positive ₹27.7 crore in Q3, in contrast to the EBITDA loss of ₹25.5 crore in the corresponding quarter of the prior year. The EBITDA margin stood at 2.1%.

Despite these positive financial results, PB Fintech’s stock closed 3% lower at ₹1,659.75 on Thursday.

The company’s Online Insurance New Premium segment witnessed a 44% year-on-year (YoY) increase, driven by growth in its newly introduced health and life insurance services. Total insurance premiums earned amounted to ₹6,135 crore, marking a 44% YoY rise, largely propelled by the expansion of new health and life insurance premiums.

For Q3 FY25, consolidated operating revenue grew 48% to ₹1,292 crore, with core insurance revenue increasing by 45% YoY. However, the core credit revenue segment saw an 18% decline YoY.

PB Fintech highlighted its renewal/trail revenue reaching an annualized run rate (ARR) of ₹665 crore, reflecting a 46% increase from ₹454 crore in the same quarter of the previous year. The company emphasized that this is a crucial factor in driving long-term profitability.

During the quarter, the company continued to enhance its customer onboarding and claims support services, with insurance customer satisfaction (CSAT) rising to 90.2%, compared to 90% in the prior quarter. Meanwhile, its credit business experienced a 20% YoY drop in disbursals through its online platform. However, the secured credit business—introduced in Q2 FY25 and now classified under "New Initiatives"—achieved ₹2,570 crore in disbursals and generated ₹24 crore in revenue for the quarter.

Since December 2022, the core credit business has remained adjusted EBITDA positive, with an ARR of ₹21,700 crore in credit disbursals and nearly 5 lakh credit cards issued. The total number of consumers with credit scores on the platform has reached 49.4 million.

More than 70% of disbursals through Paisabazaar were made to existing customers, indicating strong customer loyalty and repeat transactions. New Initiatives reported an 87% YoY increase in revenue, with an improvement in the adjusted EBITDA margin from -13% to -7%, contributing 3% to the company's overall performance.

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