Niva Bupa Health Q2 FY27 Results (NSE: NIVABUPA)
Signal: Earnings grew
The read
The operating inflection is underwriting-led: the combined ratio improved 342bps YoY to 93.20% and insurance service margin expanded 342bps to 6.80%, allowing PAT to rise 124.1% to ₹13,564 lakh even as investment income fell 19.2% QoQ and PAT slipped 1.6% sequentially.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,412.27 Cr | +27.0% | +6.1% |
| Net profit | ₹135.64 Cr | +124.1% | |
| EPS | ₹0.73 | +121.2% | |
| EBIT margin | 0% |
P&L walk
Standalone insurance revenue was ₹2,41,227 lakh, up 27.0% YoY and 6.1% QoQ; insurance service result rose 176.2% YoY to ₹12,599 lakh, while investment income of ₹15,961 lakh supported PAT growth of 124.1% to ₹13,564 lakh.
Segments
Health Insurance drove the group with revenue of ₹2,37,534 lakh and segment profit of ₹12,587 lakh, up 27.9% and 135.8% YoY respectively; Travel also turned profitable at ₹46 lakh versus a ₹346 lakh loss, while Personal Accident profit declined 12.3% YoY to ₹931 lakh.
Key positives
- GWP reached ₹2,48,405 lakh, up 34.8% YoY, outpacing insurance revenue growth of 27.0%.
- Combined operating ratio improved from 96.62% to 93.20% YoY, with claims ratio down 199bps and expense ratio down 143bps.
- Insurance service result rose 176.2% YoY to ₹12,599 lakh and insurance service margin expanded 342bps to 6.80%.
- H1 operating cash flow turned positive at ₹44,763 lakh versus negative ₹10,679 lakh in H1FY26.
- Travel Insurance turned profitable at ₹46 lakh versus a ₹346 lakh loss in Q2FY26.
Key concerns
- Solvency ratio declined to 2.03 from 2.85 YoY and 2.25 QoQ, although it remained above the disclosed regulatory threshold.
- PAT growth was partly supported by ₹15,961 lakh of net investment income, which declined 19.2% QoQ; the sequential earnings trend was therefore weaker than the YoY headline.
- Personal Accident segment profit declined 12.3% YoY to ₹931 lakh despite revenue declining only 14.6% to ₹3,238 lakh.
- EOM ratio was 34.67% for H1FY27, close to the maximum permissible 36.10%, leaving limited headroom despite current compliance.
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