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% YoY.

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

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

• The company is investing ahead of demand, including a $3 million over-investment in operating capacity this quarter.

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

Financial highlights

• Core insurance new premium grew 66% YoY; health & life insurance new premium up 78% YoY.

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

• Contribution margin for the rolling 12 months reached 29%; PAT margin improved to 4%.

• New initiatives revenue grew 131% YoY, with adjusted EBITDA margin improving from -31% to -12%.

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

Outlook and guidance

• Short-term moderation in unsecured credit growth expected to resume in H2 as regulatory and supply-side issues ease.

• Renewal revenue growth is projected at 45% for the year, with Q1 at 34% and subsequent quarters expected to be higher.

• Focus on scaling secured credit business, aiming for secured disbursals to reach 50% of total in coming years.

• 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.