PB Fintech Reports 92% Surge in Q1 Profit to Rs 163 Crore as Insurance Premiums Rise 41%.
PB Fintech has demonstrated impressive financial performance for the June quarter, reporting a remarkable 92% year-on-year (YoY) increase in profit after tax, which now stands at Rs 163 crore. This substantial growth was driven primarily by a 40% rise in operating revenue, amounting to Rs 1,888 crore, and enhanced margins, with the PAT margin improving to 9%, compared to 6% in the same quarter of the previous year. The total insurance premium collected surged by 41% YoY, reaching Rs 8,372 crore, with the protection segment, particularly health and term insurance, being the leading contributor to this growth.
The company’s core online insurance premium experienced a robust growth rate of 41% YoY in Q1FY27, with new protection premiums increasing by 53% and health insurance premiums growing by 59%. Notably, the growth in core new insurance premium, which excludes savings products, rose by 48%, highlighting the company’s focus on higher-margin offerings. The stability in growth for core insurance premium has been consistent, remaining above 34% YoY for 13 consecutive quarters. Furthermore, core insurance revenue improved by 46% YoY during the quarter, reinforcing PB Fintech’s market position and operational efficiency.
In the lending vertical, PB Fintech reported a total disbursal of Rs 4,366 crore, with core lending disbursal increasing by 33% YoY to Rs 2,776 crore. Core credit revenue rose by 25% YoY to Rs 127 crore, marking consistent growth over four consecutive quarters. The company’s renewal and trail revenue also showcased significant advancement, standing at Rs 1,003 crore, a 38% YoY increase, emphasizing the importance of renewal revenue as a long-term profit growth driver. With a quarterly core insurance renewal revenue run-rate of Rs 999 crore, the company underscores its capability to build sustainable cash flows.
The new initiatives segment also demonstrated resilience, with a revenue increase of 35% YoY, and improvements in adjusted EBITDA margins, reflecting managerial efforts to drive profitability in nascent business lines. The aggregated advisor platform, PB Partners, continued to expand significantly, boasting more than 5 lakh advisors and a 55% increase in active partners to 1.13 lakh. This growth in the advisor network is pivotal for future client acquisition and revenue generation. Overall, PB Fintech’s solid quarterly performance highlights a positive outlook for continued growth, driven by its diversified insurance and lending portfolios, as well as ongoing innovations in service delivery.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova team.)