Go Digit General Insurance reported a 31.1% YoY decline in net profit to ₹142.4 Cr in Q2 FY27, while insurance revenue grew 1.7% to ₹2,720.5 Cr.
The insurer's insurance service result fell 73.4% YoY to ₹43 Cr as insurance service expenses increased 22.4% to ₹2,607.7 Cr
Motor Third Party insurance remained Go Digit’s largest segment, generating ₹1,066.1 Cr in Q2 FY27 revenue, up 8.3% YoY
Insurtech Go Digit reported a 31.1% year-on-year (YoY) decline in its net profit for the September quarter (Q2 FY27) to ₹142.4 Cr from ₹206.8 Cr in the corresponding quarter last year. The insurtech major’s profit also declined 62.4% sequentially from ₹378.61 Cr in the June quarter.
The decline in profitability came despite a marginal increase in insurance revenue, which rose 1.7% to ₹2,720.5 Cr during the quarter from ₹2,674.9 Cr in Q2 FY26. Sequentially, insurance revenue increased 2.1% from ₹2,665.6 Cr.
Segment-wise, Motor Third Party (TP) insurance remained Go Digit’s largest business, contributing ₹1,066.1 Cr to insurance revenue in Q2 FY27, up 8.3% YoY. Motor Own Damage (OD) insurance revenue grew at a faster pace of 11.4% YoY to ₹640.64 Cr.
The company’s gross written premium for the quarter dipped by 3.6% YoY to ₹2,571 Cr while gross direct premium, dipped 1.2% to ₹2,351 Cr.
However, the company’s insurance service result, which reflects the profitability of its insurance operations before investment and other financial income, sunk 73.4% YoY to ₹43 Cr from ₹161.98 Cr in the year-ago quarter. The figure also fell 62.3% sequentially from ₹114 Cr.
The deterioration in the insurance service result came as insurance service expenses increased 22.4% YoY to ₹2,607.73 Cr in Q2 FY27 from ₹2,130.85 Cr in the corresponding quarter last year. Incurred claims rose 9.2% to ₹1,968.03 Cr from ₹1,802.96 Cr, while employee benefit expenses increased 4.3% to ₹95.48 Cr.
Commission expenses, on the other hand, declined 2.6% YoY to ₹781.88 Cr from ₹803.10 Cr. Other insurance service expenses increased 1.7% to ₹94.52 Cr.
On the investment front, Go Digit reported a 20.6% YoY increase in investment income to ₹368.4 Cr in Q2 FY27 from ₹305.5 Cr in the year-ago period. However, investment income declined 39.2% sequentially from ₹606.47 Cr.
The company’s net finance result, which includes investment income and insurance finance income or expenses, increased 28.6% YoY to ₹196.94 Cr.
Consequently, Go Digit’s profit before tax (PBT) declined 31.2% YoY to ₹190.18 Cr in Q2 FY27 from ₹276.30 Cr in Q2 FY26. The figure was also down 62.4% sequentially from ₹505.96 Cr in Q1 FY27.
Total tax expense stood at ₹47.79 Cr during the quarter, comprising current tax of ₹3.93 Cr and deferred tax of ₹43.86 Cr. This compared with a total tax expense of ₹69.51 Cr in Q2 FY26.
For the first half of FY27 (H1 FY27), Go Digit reported a 3.2% YoY decline in net profit to ₹521 Cr from ₹538.23 Cr in H1 FY26. Insurance revenue increased 4.5% YoY to ₹5,386.09 Cr during the six-month period.
Shares of Go Digit ended today’s trading session 1.05% higher at ₹260.30.
Source: Inc42
