Strong operating beat with underwriting profit surging 200% YoY, but headline net loss of Rs 55 Cr due to Rs 558 Cr equity MTM loss masks underlying improvement. quarter Investor Presentation One-Pager Mar 2026

Gross Written Premium (GWP)

₹6,259 Cr

+17% YoY on N basis

Underwriting Profit

₹186 Cr

+200% YoY (from ₹62 Cr)

Net Profit (Reported)

₹-55 Cr

Vs ₹271 Cr profit in Q4 FY25; due to MTM loss

Combined Ratio

95.7%

Improved by 2.7% YoY (98.4% → 95.7%)

What Went Right

Fresh retail growth on N basis accelerated 38% YoY, with 94% new-to-insurance mix (vs 90% last year).
Loss ratio improved for third consecutive quarter, down 4% YoY to 65.2% (retail loss ratio -3% to 64.8%).
Underwriting profit turned positive at Rs 186 Cr vs Rs 62 Cr in Q4 FY25, a 200% increase.
Expense ratio improved 30 bps to 30.1% for FY26 despite Rs 80 Cr of GST/Labor Code headwinds.
Full-year normalized PAT (8% investment yield) rose 45% YoY to Rs 1,222 Cr, with ROE expanding to 13.1% from 10.1%.

What to Watch

Reported net loss of Rs 55 Cr vs profit of Rs 271 Cr in Q4 FY25, entirely due to Rs 558 Cr mark-to-market loss from equity market correction.
Retail loss ratio for full FY26 at 68.2% remains above historical levels of ~65-66%, with management only expecting gradual improvement.
Retail premium growth of 19% in Q4 still lags industry retail health growth of ~29%, partly due to deliberate de-emphasis on portability and certain geographies.
Group health business continues to be de-emphasized; growth in that segment is subdued as management prioritises profitability over scale.
Deferred revenue from long-term policy sales (NEP vs GWP gap) will continue to mask near-term reported revenue growth.

Management Guidance

Management targets sustainable high-teen growth and mid-teen to high-teen ROEs.
Will continue annual price increases across all products, repricing ~80% of the book between Q4 FY26 and Q1 FY27.
Aiming to reach 1 million agents in the next two years, adding 1 lakh agents annually.
Expects volume-based retention to improve further from current 86-87% NOP basis.
Combined ratio target remains below 100% on IND AS basis, but no explicit numeric combined ratio target disclosed.

Investor Lens

The underlying underwriting turnaround is real and sustained, with three consecutive quarters of loss ratio improvement, driven by analytics-led pricing, portfolio optimisation, and telemedicine/wellness initiatives. However, the equity MTM volatility overwhelmed headline PAT, and the retail loss ratio still needs to retreat to historical ~65-66% levels for full credibility. The deliberate growth moderation (below industry) is a conscious trade-off to protect underwriting discipline, but investors will watch whether this gap narrows as the base effect normalises. Key focus for next quarters: NEP growth catching up with GWP (currently lagging due to long-term policies), trajectory of the back-book repricing, and any regulatory changes on expense-of-management limits. The normalized ROE of 13.1% supports a thesis that structural improvements are gaining traction, but near-term equity market sensitivity remains a risk.

From investor presentation · AI-generated analysis · Not investment advice

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📈 STRONG Net Profit up 11000% to ₹111 Cr

Revenue

Revenue grew 13.9% YoY to ₹4,648 Cr and 1.8% QoQ. This indicates a steady growth in the company's top line.

Profitability

Net Profit surged 11000% YoY to ₹111 Cr, with EPS at 1.89. PAT margin stands at 2.38% of revenue.

Margins

Operating Profit Margin (OPM) is at 3%, up from 0% in Mar 2025. This significant improvement in OPM is a positive sign.

Balance Sheet

The company has a debt of ₹490 Cr and reserves of ₹8,990 Cr, indicating a healthy balance sheet. Total assets stand at ₹23,619 Cr.

Key Risks

Low OPM, high tax rate of 26%, and minimal other income are potential risks. Dependence on a single business line could also be a concern.

Outlook

The company's strong profitability growth and healthy balance sheet position it well for future growth. However, sustaining this growth momentum will be crucial in the coming quarters.

Generated by AI · Mar 2026 results · Not investment advice

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