The company, which also operates online credit marketplace Paisabazaar, posted a consolidated net profit of 380.5 million rupees ($4.58 million) for the quarter ended Dec. 31, against a loss of 873 million rupees a year ago.

The firm, which had listed over three years ago, had expected to turn profitable, hoping heavy marketing spends would boost sales.

Revenue from operations rose nearly 43% to 8.71 billion rupees as proceeds from its insurance broker services more-than-doubled.

Revenue from its core online business of Policybazaar and Paisabazaar rose 39% to 5.93 billion rupees.

New premium for health and term insurance business grew 44%, the company said.

While total costs rose nearly 21%, advertising and promotion expenses dipped 28% from a year ago.

Peer digital payments firm Paytm reported a narrower loss in the December quarter.

PB Fintech's shares closed 1% higher ahead of its results. They had surged 77% in 2023, while Paytm had gained 20%.

($1 = 83.0800 Indian rupees)

(Reporting by Anuran Sadhu in Bengaluru)