Max Financial Services LimitedFinancial ServicesMFSL
Q1 FY27 earnings callMax Financial Services Limited
The company delivered strong growth and margin expansion, driven by a mix shift towards protection and annuity products, alongside benefits from a favorable yield curve.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Individual APE Growth | 15% | — | |
| VNB Margin | 23.2% | improved from 20.3% in Q1 FY26 | |
| Value of New Business (VNB) Growth | 33% | — | |
| Solvency Ratio | 198% | — | |
| Gross Written Premium (GWP) | INR10,610 crore | 19% growth | |
| Assets Under Management (AUM) | INR 2.03 lakh crore | 11% increase | |
| Embedded Value | INR 30,415 crore | 15% year-on-year |
Financials
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹8,923.21 Cr-27.8% YoY-33.3% QoQ | ₹69.81 Cr-59.2% YoY-49.9% QoQ | ₹1.62-62.3% YoY-50.3% QoQ |
| Q2 FY25 | ₹13,372.39 Cr+31.6% YoY+13.3% QoQ | ₹139.34 Cr-18.2% YoY-10.6% QoQ | ₹3.26-24% YoY-11.7% QoQ |
| Q1 FY25 | ₹11,798.84 Cr+28.7% YoY-20.7% QoQ | ₹155.94 Cr+54.2% YoYTurned profitable QoQ | ₹3.69+45.3% YoYTurned positive QoQ |
| Q4 FY24 | ₹14,887.81 Cr+49.9% YoY+20.5% QoQ | ₹-50.08 CrTurned loss-making YoYTurned loss-making QoQ | ₹-1.28Turned negative YoYTurned negative QoQ |
| Q3 FY24 | ₹12,355.67 Cr+38.9% YoY+21.6% QoQ | ₹171.21 Cr-36.4% YoY+0.5% QoQ | ₹4.30-34% YoY+0.2% QoQ |
TL;DR
- Individual APE grew 15% with private sector outperformance.
- VNB margin expanded to 23.2%, driving 33% VNB growth.
- Solvency ratio rose to 198% following Axis Bank's INR381 crore infusion.
- AUM crossed INR 2 lakh crore milestone.
- Structure simplification process is underway following regulatory clarity.
Said on the call
“We have had a strong start to the year, with solid performance across all the key metrics.”
From the Q&A
| Topic | What management said |
|---|---|
| Margin Drivers | Management stated the ~3% margin increase was ~70% due to yield curve benefits and ~30% due to protection mix and operating leverage, which also offset GST impact. |
| Capital & Solvency | The 198% solvency is above internal thresholds; the company can stay above risk thresholds comfortably for 2-3 quarters and will raise sub-debt to replace a redeemed tranche. |
| Structure Simplification | The process is underway post-regulatory guidelines; internal consultations are ongoing and the timeline (6-12 months from scheme filing) remains unchanged. |
| Offline Proprietary Growth | The 9% growth was impacted by voluntary policy cancellations for quality reasons; excluding that, growth was robust. |
| Online Diversification | 45% of online sales in Q1 were outside the largest web aggregator, up from 38% last year, aided by D2C engine growth and new aggregator partnerships. |
| Future Capital Needs | The INR1,600 crore QIP enabling approval is valid until May next year; future needs depend on growth and the finalization of the Risk-Based Capital (RBC) framework. |
| Competitive Landscape | Management declined to comment on competitors' actions but highlighted their consistent #1 position at key banks and strong counter-share in new partnerships. |
Guidance
- Expect to outperform the industry.
- Focus on delivering VNB growth that outpaces APE growth.
- Confident in sustaining year-on-year margin profiles through FY27.
Source
Summary written from the transcript filed by Max Financial Services Limited for the call held on 20 Aug 2026; published 20 Aug 2026, 19:00 IST.