PB Fintech (POLICYBZR) Q2 2025 earnings summary

Executive summary

• Health and life insurance new premium grew 69% year-over-year, with total insurance premium at ₹5,450 Cr for Q2 FY25 and an ARR of nearly ₹22,000 Cr.

• Core insurance revenue increased 41% year-over-year, while overall Q2 revenue rose 44% to ₹1,167 Cr.

• PAT improved by ₹72 Cr year-over-year, reaching ₹51 Cr, turning positive from a loss of ₹21 Cr in the prior year.

• Cash position increased to ₹5,423 Cr, up ₹171 Cr sequentially.

• Customer satisfaction (CSAT) reached 90%, up from 87% at IPO.

Financial highlights

• New initiatives revenue grew 87% year-over-year and are now at contribution level, no longer loss-making.

• Adjusted EBITDA for Q2 FY25 was ₹56 Cr, up from ₹13 Cr in Q2 FY24, with margin improving to 5%.

• Contribution margin for the core online business reached 43% on a rolling 12-month basis.

• Renewal/trail revenue annualized run rate rose 45% year-over-year to ₹633 Cr.

• Cash balance increased by ₹200 Cr in the quarter, now exceeding ₹5,400 Cr.

Outlook and guidance

• Medium-term guidance remains at 30% fresh business growth over the next three to four years.

• H2 FY25 is expected to remain muted for unsecured credit growth due to industry moderation and regulatory tightening.

• Management expects revenue and premium growth to align as product mix stabilizes.

• Free cash flow for FY25 expected at $60 million, with FY26 projected above $100 million.

• Management continues to explore options for underperforming subsidiaries and will re-evaluate positions as business conditions evolve.