Policybazaar parent’s Q1 profit jumps 92% driven by margin gains
The Gurugram-based company’s net profit for the quarter jumped 92% year-on-year (YoY) to Rs 163 crore as operating margins recorded significant improvement, and its Ebitda (earnings before interest, taxes, depreciation and amortisation) expanded fourfold to Rs 139 crore. PB Fintech’s post-tax profit is larger than its Ebitda because the company reports significant non-operating income — Rs 93 for…
PB Fintech, the parent company behind the insurance marketplace Policybazaar, announced a remarkable surge in its first-quarter earnings, with profits jumping by an impressive 92% compared to the previous year. The Gurugram-based fintech firm reported an operating revenue of Rs 1,888 crore for the April-June quarter, marking a 40% increase year-on-year. This growth was primarily fueled by a significant rise in new insurance premiums, which continues to be the core driver of the group's earnings.
Operating margins experienced notable improvement, and the company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) expanded fourfold to Rs 139 crore. Interestingly, PB Fintech's post-tax profit exceeded its EBITDA due to substantial non-operating income, amounting to Rs 93 crore for the June quarter.
The company's profit margin improved to 9% for the April-June period, up from 6% in the same quarter last year. In an earnings call, Yashish Dahiya, the cofounder and group CEO of PB Fintech, revealed that the company had hired around 5,000 people in Q1 2027, a move aimed at reducing costs while prioritizing growth.
Dahiya also highlighted that the company is witnessing higher growth in renewals, as the benefits of its previous three years of growth start to manifest. The core online insurance distribution business remained the mainstay of PB Fintech, contributing Rs 1,194 crore in revenue for Q1 FY27, while new ventures, including offline distributor-based insurance, international operations, and corporate sales, generated approximately Rs 694 crore.
While the company's new initiatives vertical, which continues to operate at a loss, saw its adjusted EBITDA decline by 18% to Rs 36 crore, the strong performance of the core business propelled the overall bottom line expansion.
Loan disbursals through Paisabazaar reached Rs 4,366 crore, reflecting a 33% year-on-year increase. The company currently disburses loans and credit cards at an annual run rate of Rs 17,500 crore and 370,000, respectively. PB Fintech's stock saw a 1.3% increase on the BSE, closing at Rs 1,630, with a market capitalization of Rs 75,419 crore.
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