PB Fintech (POLICYBZR) Q1 2025 earnings summary

Executive summary

• Health and life insurance new premium grew 78% year-over-year in Q1 FY25, driving total insurance premium to ₹4,871 crore, up 62% year-over-year.

• Revenue rose 52% year-over-year to just over ₹1,010 crore, with PAT improving to ₹60 crore from a ₹12 crore loss last year.

• Consolidated revenue from operations for the quarter ended June 30, 2024, was ₹101,049 lakhs, up from ₹66,559 lakhs year-over-year.

• Lending disbursal stood at ₹3,140 crore, with a temporary slowdown in unsecured credit due to regulatory and market factors.

• Policybazaar and Paisabazaar platforms continue to lead in their respective markets, with strong consumer engagement and digital adoption.

Financial highlights

• Core insurance new premium grew 66% year-over-year; health and life insurance new premium up 78% year-over-year.

• Adjusted EBITDA for Q1 FY25 was ₹49 crore, up 117% year-over-year; adjusted EBITDA margin improved to 5%.

• PAT margin for the rolling 12 months reached 4%, up from 0% a year ago.

• New initiatives revenue grew 131% year-over-year, with significant margin improvement though still negative.

• Renewal trail revenue ARR reached ₹559 crore, up from ₹418 crore last year, operating at 85% margin.

Outlook and guidance

• Management expects industry credit growth to resume in H2, with a strategic shift to increase secured lending to 50% of disbursements over time.

• Renewal revenue growth is expected to accelerate in coming quarters, with a full-year target of 45%-46% growth.

• Long-term growth opportunity for retail credit remains robust, driven by macroeconomic factors and underpenetration.

• No immediate plans for shareholder returns; capital allocation to be revisited after March 2026.

• Management continues to monitor regulatory proceedings and is confident ongoing inspections and tax matters will not materially impact operations.