Insurtech company Go Digit reported a 31.1% year-on-year decline in net profit for the second quarter of the fiscal year 2027, falling to ₹142.4 crore. The company posted a profit of ₹206.8 crore during the same period last year.
Key Takeaways
- Profitability decline: Net profit fell to ₹142.4 crore, down from ₹206.8 crore in the year-ago quarter.
- Rising expenses: Insurance service expenses increased 22.4% year-on-year, reaching ₹2,607.73 crore.
- Revenue growth: Insurance revenue saw a marginal increase of 1.7%, totaling ₹2,720.5 crore.
- Claims impact: Incurred claims rose by 9.2% to ₹1,968.03 crore compared to the previous year.
- Investment income: The company reported a 20.6% year-on-year increase in investment income, reaching ₹368.4 crore.
Operational Performance
The decline in profitability occurred despite a slight uptick in insurance revenue. While revenue grew 1.7% to ₹2,720.5 crore, the company’s insurance service result—a measure of operational profitability before financial income—dropped 73.4% to ₹43 crore. This sharp decrease was largely driven by rising operational costs. Insurance service expenses rose to ₹2,607.73 crore, up from ₹2,130.85 crore in the corresponding quarter of the previous year.
Segment Breakdown
Motor Third Party insurance remained the company’s primary revenue driver, contributing ₹1,066.1 crore, an increase of 8.3% year-on-year. Motor Own Damage insurance also saw growth, rising 11.4% to reach ₹640.64 crore. Despite these gains in specific segments, the company’s gross written premium for the quarter fell by 3.6% to ₹2,571 crore.
Financial Results
Profit before tax declined 31.2% year-on-year to ₹190.18 crore. Tax expenses for the quarter totaled ₹47.79 crore, a decrease from the ₹69.51 crore recorded in the same quarter last year. For the first half of the 2027 fiscal year, net profit fell 3.2% to ₹521 crore. Company shares closed 1.05% higher at ₹260.30 following the announcement.