PB Fintech shares surge 3% on Q2 growth fuelled by health insurance segment

PB Fintech, the parent of Policy Bazaar and Paisa Bazaar, saw its shares rise by 3.4% to ₹1,696 in early Wednesday trade on the NSE following the announcement of its fourth consecutive quarterly profit, fuelled by strong growth in its health and life insurance segments.

The company posted a profit of ₹50.98 crore in the second quarter, rebounding from a consolidated loss of ₹21.11 crore in the same quarter last year. However, this quarter's profit is 15% lower than the ₹59.98 crore reported in the first quarter.

However, by midday, the stock pared gains, trading up just 0.57% at ₹1,651.30 as of 12:28 p.m.

The company reported a 40.1% increase in total income for the quarter ending September 30, 2024, reaching ₹1,273.23 crore, up from ₹909.12 crore in the same period last year. Revenue from operations rose by 43.8% to ₹1,167.23 crore, compared to ₹811.63 crore previously. Total expenses increased 30.4% to ₹1,213.39 crore from ₹930.22 crore year-on-year.

PB Fintech's insurance and broker services segment posted a 58.1% year-on-year increase, reaching ₹998.76 crore in Q2 FY25, up from ₹631.83 crore in the same period last year. However, revenue from other services, which include commissions from financial products, online marketing, and consulting, declined by 6.3% to ₹168.47 crore from ₹179.8 crore.

Insurance premium income rose to ₹5,450 crore, led by a 69% increase in new health and life insurance business, while renewal revenue reached an annualised run rate (ARR) of ₹633 crore, up 45% year-on-year. Credit card revenue fell 8% to ₹143 crore due to a shift toward secured credit, but the business remains adjusted EBITDA positive, maintaining an annualised credit disbursal rate of ₹17,000 crore.

New initiatives showed solid momentum, with revenue from these segments growing 87% to ₹400 crore. The company also reportedly has plans to launch PB Money, a personal finance platform to support users in managing payments, investments, and insurance.

PB Fintech’s shares have climbed 107% this year, rising from ₹794 to the current ₹1,651. The stock, which first moved above its IPO price of ₹980 in January, reached a peak of ₹1,966 in September. From its all-time low of ₹356 in November 2022, the stock has increased by 351%.