PB Fintech shares rise over 5% as profit surges in Q2 FY25

PB Fintech Ltd., the parent company of Policybazaar and Paisabazaar, saw its shares climb more than 5% on Oct. 30 after reporting a sharp rise in quarterly profit and revenue. The stock touched an intraday high of ₹1,814 on the National Stock Exchange (NSE), up 5.25%, before settling higher in mid-morning trade.

The PB Fintech profit surge was reflected in its consolidated net profit of ₹135 crore for the July–September quarter of fiscal year 2024–25 (Q2 FY25), a 165% increase from ₹51 crore in the same period last year. Operational profit stood at ₹98 crore, compared with an operational loss of ₹8 crore a year earlier, marking a turnaround in performance.

Strong quarterly earnings boost stock

Revenue from operations rose 38% year on year (YoY) to ₹1,614 crore, supported by robust growth in both insurance and lending segments. PB Fintech’s total insurance premium for the quarter reached ₹7,605 crore, an increase of 40% YoY and 15% quarter on quarter (QoQ). The company attributed the rise to a 44% growth in its online new protection business.

In an exchange filing, PB Fintech said its renewal and trail revenue on a 12-month rolling basis reached ₹774 crore, up 39% from ₹556 crore in the same quarter last year. The company noted that renewal revenue in the insurance segment grew 47% year on year, underscoring the strength of its recurring income model and contributing to the overall PB Fintech profit surge.

“This is a key driver of long-term profit growth,” the company said in its filing, emphasizing that its insurance renewal revenue stood at an annualized run rate (ARR) of ₹758 crore, compared with ₹516 crore in the prior year period.

Revenue and premium growth remain solid

The company’s strong top-line and operational performance prompted a positive reaction from investors. As of 11:22 a.m., PB Fintech shares were trading 3.6% higher at ₹1,785, outperforming the NIFTY Midcap 50 index, which was up 0.14%.

Global brokerage Morgan Stanley (MS) said the company’s contribution margin performance was stronger than expected but cautioned that it should not be extrapolated based on management guidance. MS added that while new premium growth slightly trailed estimates, it remained healthy given the market environment. The brokerage also noted that clarity is still awaited on potential Goods and Services Tax (GST) implications that could affect PB Fintech’s revenue and earnings visibility, key factors influencing the future of the PB Fintech profit surge.

Brokerages see steady growth outlook

Jefferies said PB Fintech’s results exceeded both its own and market expectations. The brokerage highlighted that premiums rose 40% YoY, revenue increased 38%, EBITDA surged 2.8 times, and net profit reached ₹130 crore, indicating strong operational momentum.

Addressing concerns about potential commission rate cuts, Jefferies said management appeared “less worried,” pointing out that the company continues to attract high-quality clients and sustain growth across its business segments. It added that PB Fintech’s valuation—at 62 times FY27 enterprise value to adjusted EBITDA—remains reasonable given its strong growth trajectory.

PB Fintech, founded in 2008, operates Policybazaar, an online insurance marketplace, and Paisabazaar, a digital platform for loans and credit cards. The company has expanded its presence across multiple financial products, leveraging its technology-driven model to capture India’s growing online insurance and lending markets.

With consistent growth in both new and renewal business, analysts said PB Fintech’s performance in Q2 FY25 underscores its progress toward sustainable profitability. This PB Fintech profit surge also reflect broader momentum in India’s digital financial services sector, where online insurance and credit adoption continue to accelerate.

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