Max Financial Services (MFSL) Q2 24/25 earnings summary

Executive summary

• Announced plans to refresh corporate name and brand identity to include Axis, reflecting Axis Bank's co-promoter status and leveraging combined brand strength for broader market reach; board approval and regulatory process underway.

• Achieved strong growth in individual adjusted first-year premium, up 34% YoY in Q2 and 31% in H1, outpacing private sector and industry growth rates; private market share expanded to 9.3%.

• Value of New Business (VNB) for H1 FY25 grew 16% to ₹766 crore, with a New Business Margin (NBM) of 21.2%.

• Expanded distribution with 20-26 new partners in H1, including banks and brokers, and maintained leadership in digital channels.

• Recognized for customer experience and digital transformation, with multiple awards from ET Now, SKOCH Summit, and others.

Financial highlights

• Consolidated revenue (excluding investment income) grew 14% YoY to ₹12,820 crore in H1 FY25; consolidated revenue from operations for Q2 FY25 was ₹13,372.39 crore.

• Consolidated profit after tax reached ₹295 crore in H1; Q2 consolidated net profit was ₹139.34 crore, down from ₹170.32 crore YoY.

• Gross premium increased 14% to ₹14,137 crore; assets under management reached ₹1,70,144 crore, up 27% YoY.

• Embedded value at end-September 2024 was ₹23,338 crore, up 30% YoY; solvency ratio at 198%.

• Net worth rose 55% to ₹5,961 crore, aided by capital infusion.

Outlook and guidance

• Management expects to maintain growth momentum, targeting VNB growth in the double-digit teens and aiming for a 5-7% delta above industry growth rates.

• VNB margin guidance for FY25 is 23-24%, factoring in regulatory changes and ongoing margin optimization initiatives.

• Focus on proprietary channel growth, product innovation, and digital transformation; persistency and customer NPS targeted for further improvement.

• Rebranding expected to be completed in the next quarter, pending regulatory approvals.

• Capital infusion and strategic partnership with Axis Bank expected to support future growth.