PB Fintech tanks up to 6.6% ahead of Q2 results: Double-digit revenue growth expected, margins likely to remain subdued

The parent of Policybazaar.com is scheduled to release its earnings report for the second quarter of the current fiscal later during the day.

According to experts, the fintech’s margins are likely to remain subdued in the September quarter. The company’s core platform business premium growth is expected to contribute nearly 30% to the existing business revenue growth.

Experts believe that the company’s revenue to range around ₹1,110.2 crore to ₹1,159.1 crore, indicating a year-on-year growth of up to 43%, and quarter-on-quarter rise of up to 15%. The company’s earnings before interest taxes depreciation and amortisation (EBITDA) is expected to grow 132% YoY and 40% QoQ to ₹69.1 crore in Q2FY25. The company’s margins are expected to improve by 277 basis points (bps) to 4.4%.

Experts project that the net profit of the company is likely to be between ₹42.6 crore and ₹65 crore, increasing up to 243% from the June quarter. The company is expected to turn profitable on a year-on-year basis as it had posted a net loss of ₹21.1 crore in the year-ago period.

Experts believe that the company's total insurance premiums are likely to grow 51.5% YoY (year-on-year) to ₹5,266.2 crore.

PB Fintech Q1FY25 results

PB Fintech’s consolidated revenue from operations for Q1FY25 increased over 51% to ₹1,010.49 crore compared to ₹665.59 crore in Q1FY24. Sequentially, the company’s revenue from operations declined over 7% from ₹1,089.57 crore in the March quarter of FY24.

The company’s consolidated profit-after-tax stood at ₹59.98 crore in the June quarter of the current fiscal compared to a net loss of ₹11.9 crore in the year-ago period. In Q1FY25 the company’s PAT declined 0.34% QoQ from ₹60.19 crore in the Q4FY24.

The company’s adjusted EBITDA for the June quarter of FY25 stood at ₹49 crore growing by 117% compared to ₹23 crore in the June quarter of FY24. The company’s EBITDA margin improved to 5% in Q1FY25 compared to 3% in the corresponding quarter of the preceding fiscal.

PB Fintech share price

PF Fintech shares were under pressure ahead of the release of Q2 results on Tuesday. The stock settled 5.1% lower at ₹1,629 apiece on the NSE.

Shares of PB Fintech have gained over 126% in the last one year while rising over 103% on a year-to-date basis. In the last six months the stock has gained more than 29%. However, shares of PB Fintech have declined nearly 5% in the last one month and 4% in the last five sessions.