Go Digit General Q2 FY27 Results (NSE: GODIGIT)
Signal: Earnings declined
The read
The underwriting inflection remains negative: insurance revenue grew 1.7% YoY, but the combined ratio deteriorated to 95.9% from 79.7% as claims rose to 62.4% of revenue and Motor OD losses widened to ₹15,755 lakh; investment income of ₹36,840 lakh softened the impact, but PAT still fell 31.1% to ₹14,239 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,720.49 Cr | +1.7% | +2.1% |
| Net profit | ₹142.39 Cr | -31.1% | |
| EPS | ₹1.54 | -31.3% | |
| EBIT margin | 0% |
P&L walk
Insurance revenue of ₹2,72,049 lakh grew 1.7% YoY, but the insurance service result fell 73.4% to ₹4,304 lakh as claims and expenses increased; investment income of ₹36,840 lakh partly cushioned the underwriting deterioration, leaving PAT down 31.1% to ₹14,239 lakh.
Segments
Motor OD is the principal drag, with a ₹15,755 lakh segment loss versus a ₹12,997 lakh loss YoY, while Motor TP generated ₹24,505 lakh of profit and remained the largest offset; Motor OD and Motor TP together contributed ₹8,750 lakh of profit before other segments.
Key positives
- Investment income increased 20.6% YoY to ₹36,840 lakh, partly cushioning the 73.4% decline in the insurance service result.
- Motor TP remained profitable at ₹24,505 lakh in Q2FY27, although down 12.8% YoY from ₹28,109 lakh.
- Solvency remained strong at 2.40x versus 2.26x YoY, despite the decline in quarterly PAT.
Key concerns
- Combined ratio worsened to 95.9% from 79.7% YoY, with claims ratio rising 14.2pp to 62.4% and expense ratio rising 2.0pp to 33.5%.
- Motor OD loss widened to ₹15,755 lakh from ₹12,997 lakh YoY, indicating continued pressure in a major business line.
- PAT declined 31.1% YoY to ₹14,239 lakh despite 20.6% growth in investment income, leaving earnings increasingly dependent on portfolio returns to offset weak underwriting.
- GWP declined 3.6% YoY to ₹2,57,145 lakh even as insurance revenue increased 1.7%, indicating weaker current-period premium momentum.
Research and educational content only. Not investment advice.