PB Fintech's Q2 revenue surges 44%, reports fourth straight quarter of profit

Yashish Dahiya, Chairman & CEO, PB Fintech

PB Fintech, the parent company of Policybazaar and Paisabazaar, on November 5, reported a fourth straight quarter of profit in the September quarter, fuelled by the high growth in health and life insurance premiums.

The company reported a 44 percent growth in operational income at Rs 1,167 crore during Q2 of FY25, as against the Rs 811 crore it reported during the same quarter of the previous financial year.

The company's net profit also grew to Rs 51 crore during the second quarter of FY25, compared to the Rs 21 crore loss it had reported in the September quarter of FY24.

The company reported a 69 percent growth in the health and life insurance segment with a total insurance premium collection of Rs 5,450 crore during the quarter.

"Our renewal/trail revenue is at an annual recurring revenue (ARR) of Rs 633 crore, up from Rs 436 crore during the same quarter of last year, a 45 percent growth. This typically operates at over 85 percent margins and is a significant source of profit growth," the company said in a statement.

During the quarter, the company saw its share prices fluctuate widely after reports emerged that it was planning to invest in healthcare providers.

In an interview with Moneycontrol, the Group CEO Yashish Dahiya clarified that it will only be a minority investor and will not run hospitals.

Ahead of the announcement of quarterly results, the company's share price had fallen by more than 4 percent on November 5.

Meanwhile, PB Fintech's credit business saw an 8 percent decline in revenue even as its loan disbursal remained flat compared to the same quarter of last year, which it attributed to a change in product mix between secured and unsecured credit.

The Reserve Bank of India (RBI) has been asking banks and NBFCs to reduce their exposure to unsecured credit as it feels that the sector is overheated.

According to the company, its ARR of credit disbursal stood at Rs 17,000 crore while it is issuing around 5.8 lakh credit cards through the Paisabazaar platform.