PB Fintech, the parent company of Policy Bazaar and Paisa Bazaar, reported a profit for the fourth consecutive quarter, leading to a 3.4% rise in its share price on Wednesday morning. In early trade, shares reached ₹1,696, reflecting optimism from investors following the company’s recent earnings release.
However, by 10:15 a.m., the stock had dropped 2.5% to ₹1,604, highlighting a volatile trading session as the company continues to navigate a strong yet fluctuating demand in the financial services industry. For those looking to buy shares online, PB Fintech’s recent growth and strategic initiatives continue to attract attention.
Quarterly profit and revenue growth highlight financial gains
For the second quarter of financial year 2025 (Q2 FY25), PB Fintech reported a net profit of ₹51 crore, a significant turnaround from the ₹21 crore loss reported in the same quarter the previous year. The company’s revenue also grew by 44% year-on-year (YoY), rising from ₹812 crore in the previous year to ₹1,167 crore this quarter. This growth in revenue is primarily attributed to rising demand in the insurance sector. This trend supports PB Fintech’s performance and has sparked interest among investors who buy shares online.
Strong insurance demand drives revenue increase
A significant portion of PB Fintech's revenue growth stems from its core insurance offerings. In Q2, revenue from insurance sales rose by 41% YoY, reaching ₹624 crore. Analysts have noted that India’s insurance sector, historically underpenetrated, is seeing increased demand as more individuals seek to secure their financial futures.
This expansion in insurance uptake, alongside improved financial literacy and rising incomes, has contributed to PB Fintech’s favourable performance in recent quarters, making it an appealing stock for those aiming to buy shares online.
Credit segment reports mixed results in Q2
PB Fintech’s credit card and lending services delivered varied outcomes this quarter. Credit card revenue saw an 8% YoY decline to ₹143 crore, mainly due to shifts in the product mix between secured and unsecured credit. Despite this decrease, the company has maintained a positive adjusted EBITDA in its credit segment since December 2022.
Currently, PB Fintech operates at an annualised disbursal rate of ₹17,000 crore in credit and oversees approximately 5.8 lakh credit card issuances. With a total credit score consumer base now reaching 47.7 million, the company remains an attractive option for investors looking to buy shares online in the fintech sector.
Operating expenses and adjusted EBITDA improvements
As PB Fintech scales its operations, it has increased investments in operating expenses, with the anticipation that these upfront investments will yield returns in the latter half of FY25. The adjusted EBITDA margin has also shown improvement, moving from -26% to -12%, marking a 14 percentage point gain compared to the previous year.
The company’s management has attributed this improvement to enhanced operating efficiencies and expects that its ongoing focus on expanding revenue streams will drive continued margin growth. For those who buy shares online, these operational improvements and PB Fintech’s focus on profitability may enhance the appeal of its stock.
Stock performance sees a 102% rise in CY24
PB Fintech’s stock has seen a remarkable increase of over 100% in the calendar year 2024, rising from ₹794 to the current trading price of ₹1,607. After crossing its IPO price of ₹980 earlier this year, the stock experienced a strong rally, reaching a record high of ₹1,966 in September.
As of now, PB Fintech shares are trading approximately 64% higher than their IPO price, with a significant 351% gain from their all-time low of ₹356 recorded in November 2022. This upward momentum has positioned PB Fintech as an attractive option for investors who buy shares online and are looking for growth in the digital insurance and financial services space.
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