PB Fintech shares jump as CEO reiterates profitability target

Shares of PB Fintech rose more than 4 percent on February 22, after CEO Yashish Dahiya reiterated the company’s profitability target.

“A Rs 1000 crore PAT in 2027. That is my stated objective as I look at the next four years because we are at the end of 2023 now. So by 2026-2027 we should make a thousand crore profit. I think it takes away the question that are you profitable? Is your business fundamentally profitable?” said Mr. Dahiya in an interview with ET on Wednesday.

In Q3FY23, the financial services platform saw its consolidated loss narrow to Rs 87 crore from Rs 298 crore reported in Q3FY22. Revenue from operations grew 66% YoY to Rs 610 crore with the company reporting positive core business adjusted EBITDA at Rs 26 crore. This was attributed to the credit business breaking even in December ahead of expectations of achieving it in Q4FY23.

“Our EBITDA has grown at ₹164 crores for the first nine months of the year. Please notice that the PAT loss has reduced by more than ₹200 crores, but that is not really reflective of the business reality. The business reality is this…that's going to consistently keep changing, right. We stay confident of being adjusted EBITDA-positive for Q4 this year and deliver the first full year of PAT in '23-24,” Management said during Q3FY23 earnings call.

In the Q2FY23 earnings call, the management had guided PB Fintech to achieve a PAT of Rs 1,000 crore by FY26/27.

“I think we would be subdued on any investments at least till we put a reasonable amount of profit on the books. To be brutally honest, I am focused on a single number which is Rs 1,000 crores of profit in 26-27,” Mr. Dahiya had said during Q2FY23 earnings call.

PB Fintech shares closed 2.17 percent higher on the NSE at Rs 508.90 apiece.