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Go Digit Q2 profit falls as flood claims and higher expenses hit underwriting
The listed insurtech reported insurance revenue of Rs 2,720.5 crore, up 1.7%, while Inc42 put net profit at Rs 142.4 crore, down 31.1% year on year.
Go Digit General Insurance reported a softer September quarter as claims and expenses rose faster than premiums. Inc42, reading the company's results, said consolidated net profit fell 31.1% year on year to Rs 142.4 crore in Q2 FY27 from Rs 206.8 crore a year earlier, and fell 62.4% from Rs 378.61 crore in the June quarter. Insurance revenue still edged up 1.7% to Rs 2,720.5 crore from Rs 2,674.9 crore.
In its NSE intimation and investor presentation dated 5 November 2026, Go Digit said insurance revenue was Rs 2,720 crore versus Rs 2,675 crore a year earlier. Gross written premium fell 3.6% to Rs 2,571 crore and gross direct premium fell 1.2% to Rs 2,351 crore. The company said that excluding health reinsurance inward and government health business it chose not to renew because pricing looked unattractive, gross written premium was flat.
Underwriting margins weakened. Inc42 put the insurance service result at Rs 43 crore, down 73.4% from Rs 161.98 crore, as insurance service expenses rose 22.4% to Rs 2,607.73 crore and incurred claims rose 9.2% to Rs 1,968.03 crore. Motor Third Party remained the largest segment at Rs 1,066.1 crore of insurance revenue, up 8.3%, while Motor Own Damage rose 11.4% to Rs 640.64 crore.
Go Digit's own presentation stresses Ind AS reporting from this quarter, with a transition date of 1 April 2025. Profit after tax excluding mark to market movements was Rs 208 crore versus Rs 277 crore a year earlier. Flood losses of about Rs 63 crore on a net basis weighed on the quarter; excluding floods, PAT ex MTM would have been Rs 255 crore versus Rs 285 crore. The Combined Insurance Service Ratio rose to 99.8% from 94.9%, or 97.4% excluding flood losses. Solvency stayed comfortable at 2.40x against the 1.50x regulatory minimum, and assets under management grew 15.9% to Rs 24,371 crore.
For the first half of FY27, Inc42 put net profit at Rs 521 crore, down 3.2% from Rs 538.23 crore, with insurance revenue up 4.5% to Rs 5,386.09 crore. Shares ended the session of the results day 1.05% higher at Rs 260.30, according to Inc42. The open question is whether motor loss ratios keep improving after the flood spike, and whether stepping away from thinly priced health reinsurance leaves enough growth in the core motor book.
