POLICYBZR - PB Fintech Limited Share Price

In the earnings call conducted on August 1, 2025, management provided a positive outlook for PB Fintech Limited, highlighting a year-on-year revenue growth of 33%, reaching Rs.1,348 crore, primarily driven by a 36% increase in total insurance premiums to Rs.6,616 crore. Notably, the health insurance segment saw extraordinary growth of 65%. The management noted that the core new insurance premium has been consistently growing in the range of 40% over the past nine quarters.

Key forward-looking points mentioned include:

1. Growth Focus: The primary focus remains on growth rather than immediate profitability. The management anticipates maintaining a growth trajectory of around 30-40% for core business, with expectations for long-term profit growth driven by this expansion.

2. Insurance Premium Target: Management has set an ambitious target to achieve Rs.1 lakh crore in insurance premiums by 2030, signaling their intent to prioritize scale.

3. Customer Success Metrics: Customer satisfaction ratings are above 90%, indicating strong service quality, which is integral for retaining and attracting customers in a competitive market.

4. Health and Term Insurance Market: The management indicated that PB Fintech holds a market share of about 15% in health and around 25% in term insurance. They foresee further growth potential in these segments.

5. Cost Management: While costs have risen due to investments in growth, there is an expectation that these will stabilize, ultimately leading to improved margins in the long term.

6. New Initiative Contribution: The contribution margin for new initiatives has improved to 5%, and management forecasted that this could further enhance as they move deeper into the market.

7. Credit Business: They highlight a near-term expectation of growth resuming in the credit segment by Q3 FY2026, after a period of soft demand.

The outlook paints a picture of a company that is strategically invested in growth while committed to developing its service offerings across both the insurance and credit segments.

Here are the major questions from the Q&A section of the earnings call transcript, along with the detailed answers provided by the management:

Question 1: How is management thinking in terms of balancing between growth and profitability?

Management: Our focus right now is entirely on growth. We will deliver profits, but they will come as an outcome. We're not optimizing for profits currently; instead, we prioritize investments that foster growth. While we could drive higher profits right now, our bias leans heavily towards expanding our market presence. We aim to reach Rs.1 lakh Cr in premiums by 2030, focusing less on immediate profitability and more on achieving significant scale.

Question 2: Is there any change in strategy at Paisabazaar since Santosh took over?

Management: Yes, we're expanding our Secured lending, growing customer monetization on existing traffic, and enhancing our risk assessment capabilities through alternate data sources. We're also launching additional financial products like bonds and fixed deposits. These strategic shifts aim to sharpen our underwriting process and build a more diversified product ecosystem.

Question 3: Is there increased competitive intensity from smaller players in new initiatives?

Management: The competitive landscape remains, but it's not drastically altered. Our focus should be on adding value to our agent partners rather than merely competing. As the market matures, our strength lies in sustainable business practices, which should naturally lead us to better economics without being overly affected by competition.

Question 4: What is PB Fintech's market share in the Health and Term insurance sectors?

Management: In retail Health insurance, we hold about 15% of the fresh retail business; in Term insurance, approximately 25%. However, our primary goal is not about market share, but rather about market creation, addressing the needs of underserved segments in India.

Question 5: What are the trends regarding renewal take rates in health insurance?

Management: Currently, the renewal take rate is gradually increasing. We have seen slight improvements, reflecting the growing contribution of Health insurance to our portfolio. In the long run, we aim to sustain these levels and improve our loss ratios through better customer management.

These encapsulated answers showcase the management's strategic direction and operational focus, highlighting their commitment to growth while managing profitability thoughtfully.