PB Fintech (POLICYBZR) Q1 25/26 earnings summary

Executive summary

• Total insurance premium for the quarter reached ₹6,616 Cr, up 36% year-over-year, led by 65% Health insurance growth and strong performance in the core protection business.

• Consolidated operating revenue grew 33% year-over-year to ₹1,348 Cr, with PAT (excluding exceptional items) up 347% to ₹85 Cr, reflecting a 6% margin.

• The company remains focused on growth over profitability, aiming for scale and long-term market creation, especially in Health and term insurance.

• Lending disbursal hit ₹7,003 Cr (123% YoY growth), but core lending disbursal declined 33% YoY, indicating stress in this segment.

• Consolidated revenue from operations for the quarter ended June 30, 2025, was ₹134,799 lakhs, up from ₹101,049 lakhs year-over-year.

Financial highlights

• Core online insurance premium grew 35% year-over-year; protection (health & term) new premium up 46% YoY.

• Renewal and trail revenue on a 12-month rolling basis rose 43% to ₹725 Cr, with ARR at ₹673 Cr and 80%+ margins.

• Adjusted EBITDA rose 81% YoY to ₹89 Cr; EBITDA margin improved to 7%.

• Core business (excluding savings) has maintained ~40% growth for nine quarters, with 42% this quarter.

• Earnings per share (basic) for the quarter was ₹1.85, up from ₹1.34 year-over-year.

Outlook and guidance

• Management prioritizes growth over short-term profitability, targeting a long-term goal of ₹1 lakh Cr premium by 2030.

• Contribution margin for new initiatives expected to be around zero next year, with long-term adjusted EBITDA margin for POSP business projected at 5%.

• Tax rate guidance is 8-10% for the next 18 months, with long-term profitability guidance unchanged.

• Management expects no material impact from ongoing regulatory and tax proceedings on continuing operations.

• Continued investment in new business lines and international expansion, including healthcare and payment aggregation.