POLICYBZR Q1 FY24 earnings call.
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Revenue
₹666 Cr
verified against source
Revenue YoY
32%
reported change
EBITDA
₹23 Cr
latest reported figure
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What the record says.
PB Fintech delivered a standout Q1 FY24 with consolidated adjusted EBITDA turning positive at INR 23 crore, a INR 89 crore improvement from the INR 66 crore loss in Q1 FY23. Core business adjusted EBITDA was INR 69 crore, up INR 64 crore sequentially. Total insurance premium reached INR 3,011 crore at 24% YoY growth, though this was below expectations due to subdued savings business. Renewal ARR surged 53% to INR 418 crore from INR 273 crore, providing a high-margin (85%) recurring revenue base that drives future profitability. Health and term protection grew approximately 40%, marking recovery after two years of stagnation. Paisabazaar achieved 7 consecutive months of EBITDA profitability with INR 1,300+ crore annualized disbursements. Management maintained confidence in the INR 1,000 crore PAT guidance for FY26-27, projecting INR 400+ crore cash generation in FY24. Risks include muted savings growth potentially constraining premium trajectory, GST uncertainty in insurance distribution, and competitive pressure from digital-first entrants targeting the large addressable market.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects to generate INR 400+ crore cash in FY24, building on Q1's INR 18 crore positive cash generation.
- INR 1,000 crore PAT guidance for FY26-27 remains unchanged; management expressed higher confidence for FY24 delivery within this trajectory.
- Annual investment in new initiatives (POSP, PB Partners, UAE) capped at INR 150-250 crore, down from ~INR 146 crore in Q1 FY23 to INR 34 crore in Q1 FY24.
- Targeting ~20% EBITDA-to-revenue ratio in a reasonable timeframe, currently at 6-7%, as renewal revenue (14% of credit revenue) and operating leverage improve margins.
Risks flagged
- Savings business was below last year's Q1 levels due to March tax changes impacting the market. This suppressed overall premium growth to 24% instead of potential higher levels.
- Industry-wide GST consultation on commission structures remains unresolved. Management stated no provisioning and no expected material impact, but the issue is still under regulatory review.
- POSP business showed -6% decline and high margin volatility (-10% to +1% contribution margin quarter-to-quarter). Management acknowledged this is a competitive dynamic they will 'wait out', with economics improving gradually.
- Analyst questioned competitive threat from PhonePe and Jio Financial Services. Management deflected, stating only unnamed 'unknown' players following Policybazaar's model are second-largest—but did not address digital platform competition directly.
Key quotes
- I would, usually, I would ask you to desist from focusing on new business margin. It doesn't make sense. If health grows faster than other categories, you will see our margin decline. Health on new business is a zero margin category. I would rather that we were at 15%-20% negative margin on the first year, but we're growing much faster.
- The industry always grows together. It is not like one player will grow and the rest of the industry will go into the dumps. Usually, you may have player-to-player shift a little bit. We are still a very small market share. The area we focus on will hopefully grow faster than the rest of the industry, because protection is what we are focusing on.
- We have moved from -13% [EBITDA margin] to very near to double digits in the last 1 year. That's a very big change. Our renewal revenue is growing at 53%. Let's see. Paisa has always been a strategic question mark and an operational positive surprise. I expect the same.
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