Max Financial Services (MFSL) Q1 25/26 earnings summary

Executive summary

• Revenue excluding investment income grew 18% year-over-year to ₹6,194 crore in Q1 FY26; consolidated profit after tax was ₹86 crore, impacted by new business strain.

• Individual adjusted first-year premium rose 23% to ₹1,553 crore, outpacing private industry growth of 8%.

• Private market share expanded to 10.0%, up 121 bps from 8.8% in 3M FY'25.

• Recognized as a top employer, maintaining high rankings in Great Place to Work surveys and completed a major rebranding and digital transformation.

• Leadership transition announced: Sumit Madan to succeed Prashant Tripathy as MD & CEO from October 1.

Financial highlights

• Gross written premium grew 18% year-over-year to ₹6,397 crore; renewal premium up 17% to ₹3,873 crore.

• Value of New Business (VNB) rose 32% to ₹335 crore; New Business Margin (NBM) expanded to 20.1% from 17.5%.

• Embedded value at June-end stood at ₹26,478 crore, up 20% year-over-year.

• Assets under management reached ₹1.83 lakh crore, a 14% increase.

• Net worth rose 10% to ₹6,348 crore.

Outlook and guidance

• Confident in maintaining margin guidance of 24%-25% for FY26, supported by ongoing investments in distribution.

• Focus remains on predictable, sustainable growth, with continued leadership in online acquisition and product innovation.

• Digital penetration target of 95% by FY 2026, with 93.58% achieved as of June 2025.

• Expect the delta between adjusted FYP and APE to narrow to 2%-4% for the rest of the year.

• No immediate need for external capital; solvency ratio at 199% provides comfort for growth.