Go Digit General Insurance Limited — Q4 FY26 earnings call

Call held 28 Apr 2026

Management summary

Go Digit General reported a strong Q4 and FY26, with significant growth in gross written premium and assets under management. Profitability saw a substantial increase, and the company's solvency improved. The adoption of new Indian accounting standards provides greater clarity. While some segments like health faced losses and motor OD loss ratios increased, management is taking corrective actions and remains optimistic about future growth, particularly in new commercial lines and direct crop participation.

Highlights

  • Gross written premium reached INR11,300 crores.

  • Assets Under Management (AUM) grew to INR23,000 crores, a 16.3% increase over the previous year.

  • Profit Before Tax (PBT) for Q4 FY26 was INR239 crores, up from INR142 crores in Q4 FY25.

  • Profit After Tax (PAT) under Indian accounting standards was INR179 crores, up from INR106 crores in Q4 FY25.

  • Annual Return on Equity (ROE) on Indian net worth stood at 17.7% post-tax.

  • Combined ratio improved by 1.2% YoY to 105.7% for the full year FY26.

  • Solvency ratio improved to 2.42.

Concerns

  • Health segment incurred a loss of approximately INR252 crores.

  • Fire segment net loss ratio increased due to two major claims.

  • Commercial vehicle business proportion declined to 24% of total motor business.

  • Motor Own Damage (OD) loss ratio increased YoY for the full year.

Key financials

7 periods

Headline

  • Gross Written Premium
    ₹11,300 Cr
  • Assets Under Management
    ₹23,000 Cr
    YoY +16.3%
  • ROE (Annual, Post-Tax, Indian Net Worth)
    17.7%
  • Solvency
    2.42
  • Leverage
    5%
  • Health Segment Loss
    ₹252 Cr

Q4 FY25

  • Profit Before Tax
    ₹142 Cr

Q4 FY25, Indian AS

  • Profit After Tax
    ₹106 Cr

Q4 FY26

  • Profit Before Tax
    ₹239 Cr
  • GDPI Growth
    21.3%

Q4 FY26, Indian AS

  • Profit After Tax
    ₹179 Cr

FY25

  • Combined Ratio
    106.9%
  • Motor Retention
    95.9%

FY26

  • Combined Ratio
    105.7%
  • GDPI Growth
    16.2%
  • Tax Rate
    13.8%
  • Motor Retention
    89.6%

What they filed

Q1 FY27: revenue up 8.5%, net profit down 37.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue2,234 2,436 2,594 2,236 2,488 +11%2,570 +6%2,711 +5%2,427 +9%
EBITDA89 118 -209 159 135 +52%162 +37%-297 −42%114 −28%
Net profit89 119 116 138 117 +31%140 +18%149 +28%86 −38%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Motor
    44% Private Car Share32% 2-wheeler Share24% Commercial Vehicle Share
  • Health
    6% Retail Share73% Employer-Employee Share22% Non-Employer Employee Share

Capital allocation

high confidence
  • Liquidity Liquidity disclosed Solvency ratio improved to 2.42, indicating a strong capital position. Management stated they do not need any additional capital and expect solvency to remain comfortably above 200%.
    Our solvency has now improved to 2.42. And I think for us, the issue is likely to be we anyway don't need any capital and even under the new scenario, we would not expect any new capital. ... solvency will still continue to be comfortably be above 200%.

Guidance & targets

Tax Rate

  • Tax Rate Tax Rate · Next year · High confidence 25.2%
    Next year, the tax rate would move to 25.2% basis.

    — Kamesh Goyal

Profitability

  • DAC Unwind Profitability · '26, '27 · High confidence 65%
    And roughly 65% of this will actually get -- will unwind in '26, '27.

    — Kamesh Goyal

Volume

  • New Commercial Lines Premium Volume · next three to five years · Medium confidence INR1,000 crores
    this specialized line of business are capable of giving Digit about INR1,000 crores premium in the next three to five years.

    — Kamesh Goyal

  • Health Business Growth Volume · future (conditional) · Low confidence 50-60%
    in group health, for example, if pricing improves just by 5%, just by 5%. And we are able to through the initiatives we are working on are able to reduce our loss ratio by 2%, this business can easily grow by 50%, 60%.

    — Kamesh Goyal

Leverage

  • Leverage Ratio Leverage · over the next 2 years · High confidence 5%
    We had said that over the next 2 years, we would expect it to be about 5.

    — Kamesh Goyal

Investment Strategy

  • Equity Asset Allocation Investment Strategy · future · Medium confidence 12.5%
    we have runway to now go even above 10%. I would say 12.5% is quite comfortable for us.

    — Kamesh Goyal

  • Fixed Income Duration Investment Strategy · ongoing · High confidence 4.5
    if it doesn't, then I said we already are at 8.5%. Similarly, on fixed income, interest rates stay where they are, we can maintain the duration of 4.5.

    — Kamesh Goyal

What to watch in Q1 FY27

Motor OD Loss Ratio Trend

From July quarter onwards.
Current Increased YoY for full year FY26, but Q4 showed reduction vs Q3.
Target Stabilization and reduction.

Why it matters

Indicates effectiveness of corrective actions taken by management to improve profitability in a key segment.

in the last quarter, I had said that we have started taking corrective actions in motor own damage loss ratio. And from July quarter, we should see some impact. If you look at only quarter 4, we have actually seen reduction in our quarter 4 loss ratio compared to quarter 3. But my sense is that we should really see impact of this loss ratio in a way, stabilizing first in July to September and then actually reducing.

Risks & concerns

  • Health segment losses

    medium

    The health segment incurred a loss of approximately INR252 crores, leading to non-renewal of some business.

    Management acknowledged

  • Motor OD loss ratio increase

    medium

    A strategic decision to prioritize premium retention and focus on SAOD business led to a temporary increase in loss ratio, with corrective actions now underway.

    Management acknowledged

  • Regulatory pressure on Expense of Management (EOM)

    medium

    Government and regulators are focused on reducing insurance costs, which could lead to new regulations impacting EOM.

    Management acknowledged

  • Increased competition from new players

    medium

    New non-life insurers, some backed by private equity or strong parents, are entering the market, potentially increasing competition.

    Management acknowledged

  • Market volatility impacting investments

    medium

    Potential for significant market downturns could impact investment gains, though the company feels well-positioned with its asset allocation.

    Management acknowledged

  • Fire segment net loss ratio increase

    low

    Two major claims impacted the net loss ratio in the fire segment, though gross loss ratio remained stable.

    Management acknowledged

Q&A highlights

7 direct
Fire Segment Profitability & Crop Business Strategy Direct
on fire, I think I have already said that we have increased the capacity. On the cat limit, we have increased the cat limit, but we have moved from INR36 crores to INR45 crores in terms of overall premium... I don't think our premium has actually gone up on the cat in absolute amount. Secondly, I also said that our commission terms have become better in Fire and Engineering... on crop, I think this year, we want to also participate on the tenders on the direct side.

Clarifies the company's approach to managing profitability in the fire segment despite increased risk cover and outlines a strategic shift towards direct participation in the crop business.

Asked by Sanketh

New Commercial Ventures & Growth Drivers Direct
this specialized line of business are capable of giving Digit about INR1,000 crores premium in the next three to five years... I think as far as motor goes, only yesterday, I think I was part of a call, and I think Jasleen can add if she wants to. I think we are seeing in the month of April, some correction which is happening in the market, both on the price as well as on the commission.

Provides a quantitative target for new commercial lines and offers insights into current market dynamics and competition in the motor segment.

Asked by Supratim Datta

Motor OD Loss Ratio & Retention Direct
we consciously delayed taking some corrective action in motor own damage loss ratio. One, we wanted to experiment and see whether our premium retention remains high... Overall retention in motor this year is 89.6% compared to 95.9%.

Explains the rationale behind the increased motor OD loss ratio and the observed decline in motor retention, indicating a strategic trade-off.

Asked by Nidhesh Jain

EOM Management & Acquisition Cost Direct
regulator is also very conscious that EOM objective was to reduce the cost for the end customer... So, our expectation is that some sort of regulations will come in the next 2, 3 months' time frame... acquisition cost in India is significantly higher than other countries on a like-to-like basis because if that is the case, then there is room to improve that?

Highlights potential regulatory intervention regarding Expense of Management (EOM) and acquisition costs, which could impact industry structure and profitability.

Asked by Nidhesh Jain

FY27 Product Mix Strategy & Motor TP Price Hike Direct
on the TP price hike, we are not privy to what the regulator is thinking. And secondly, I personally feel if the regulator is thinking for reducing the cost of insurance, then it might be better from their perspective to achieve that objective rather than increase the price... we don't drive ourselves to a line of business mix because we don't think there is an ideal line of business mix.

Clarifies management's stance on TP price hikes (not expecting an increase) and their flexible approach to product mix based on market opportunities rather than fixed targets.

Asked by Prayesh Jain

Group Health Business & New Competition Direct
in EOM, commission and management expenses should be split because a new company... management expenses are higher in the first few years... when we started Digit, we started from scratch from 0, and we were competing against really the big companies... I'm sure we will be able to compete with the new companies also.

Addresses the impact of EOM regulations on new entrants and expresses confidence in competing with new players, drawing parallels to the company's own history.

Asked by Dipanjan Ghosh

IFRS Claims Discount Benefit & Investment Yields Direct
I think when we look at IFRS or Indian accounting standards now results, we don't look at discounting of reserves in our KPI. What we look at is combined ratio on a net earned premium basis plus DAC... discounting typically would always be there because the reserves are there. Now if the discount rate changes... the discounting in reserves would be fairly stable.

Provides clarity on how the company evaluates performance under new accounting standards, specifically regarding discounting of reserves and investment yields, emphasizing their focus on combined ratio plus DAC.

Asked by Ananga Rana

3 min read 6 chapters

Detailed narrative

Q4 & FY26 Performance Overview

Go Digit General reported a strong Q4 and FY26, with gross written premium reaching INR11,300 crores. The company's assets under management (AUM) grew to INR23,000 crores, marking a 16.3% increase over the previous year. Profit Before Tax (PBT) for Q4 FY26 surged to INR239 crores from INR142 crores in the prior year, while Profit After Tax (PAT) under Indian accounting standards was INR179 crores, up from INR106 crores. The annual Return on Equity (ROE) on Indian net worth stood at a healthy 17.7% post-tax.

Transition to New Accounting Standards

The company has proactively prepared and audited its FY26 results under the new Indian accounting standards, which are based on IFRS and become applicable from April 1, 2026. This transition aims to provide greater clarity and comparability with other industry players. Management highlighted that under these new standards, their net worth is INR7,600 crores, significantly higher than the INR3,000 crores under the previous IGAAP basis. The combined ratio for FY26 improved by 1.2% to 105.7% compared to 106.9% in FY25.

Investment Performance and Strategy

Go Digit's investment portfolio saw its AUM grow by INR3,200 crores over the year. The overall investment yield was 1.8%, with the yield excluding capital gains at 7.1% for FY26 (compared to 7.2% in FY25). The company reported an unrealized loss of INR54 crores on its total investments, representing 0.2% of AUM. Management emphasized a strategic reduction in fixed income duration from 5.2 (March '25) to 4.4 (December '25), now maintained around 4.5, to manage interest rate risks. Equity asset allocation is currently around 8.5%, with a comfortable runway to increase to 12.5% even with market drops, given a solvency ratio of 2.42.

Growth Drivers and Product Mix

The company achieved a Gross Direct Premium Income (GDPI) growth of 16.2% for the full year and 21.3% for Q4 FY26. While overall growth was strong, the commercial vehicle segment's share in motor business declined to 24%, now lower than 2-wheelers (32%) and private cars (44%). Management indicated a flexible approach to product mix, focusing on opportunities rather than fixed targets. New specialized commercial lines are expected to contribute INR1,000 crores in premium over the next three to five years.

Reinsurance Strategy

Go Digit renewed its reinsurance program for FY27, maintaining stable treaties and improving commission terms in Fire and Engineering. The company increased its treaty capacity in fire and other lines of business. To manage accumulation risks in commercial vehicle segments, particularly in high-concentration geographies, the company has ceded 11% of non-motor, non-health premium. Risk excel limits for earthquake increased from INR1,600 crores to INR2,000 crores, with the company's retention increasing from INR36 crores to INR45 crores for Nat Cat.

Regulatory Environment and Competition

Management noted a strong regulatory focus on reducing the cost of insurance for end-customers, with potential regulations on Expense of Management (EOM) expected in the next 2-3 months. The company expressed confidence in its ability to compete with new entrants in the non-life space, drawing on its experience of growing against established players. Despite competitive pressures in segments like motor, management believes its agile strategy and focus on profitability will enable continued growth.

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