Max Financial Services (MFSL) Q2 24/25 earnings summary

Executive summary

• Announced plans to refresh corporate name and brand identity to include Axis, leveraging Axis Bank's co-promoter status for stronger brand association and market reach; board approvals obtained, regulatory approvals pending.

• Achieved robust growth in individual adjusted first-year premium (34% YoY in Q2, 31% in H1), outpacing private sector and industry growth rates; private market share expanded to 9.3%.

• Expanded distribution by onboarding 26 new partners, including banks and brokers, and maintained leadership in digital channels.

• Focused on product innovation, notably launching a Nifty 500 Momentum Fund and enhancing protection and health offerings.

• Maintained high customer satisfaction, with Net Promoter Score rising to 61 and persistency metrics at record levels.

Financial highlights

• Consolidated revenue (excluding investment income) grew 14% YoY to INR 12,820 crore in H1 FY25; consolidated revenue from operations for Q2 FY25 was ₹13,372.39 crore.

• Consolidated profit after tax reached INR 295 crore in H1 FY25; Q2 FY25 net profit was ₹139.34 crore.

• Gross premium increased 14% to INR 14,137 crore; Value of New Business (VNB) for H1 at INR 766 crore, up 16%.

• Embedded value at end-September 2024 stood at INR 23,338 crore, with annualized total return on EV (excluding capital infusion) at 24.2%.

• Solvency ratio at 198%; assets under management grew 27% YoY to INR 1.7 lakh crore.

Outlook and guidance

• Management aspires for double-digit VNB growth and strong APE growth, maintaining a margin range of 23-24% for FY25 despite regulatory changes.

• Expects to mitigate most of the 100-200 bps margin impact from new surrender regulations over the next few quarters.

• Focus on proprietary channel growth, product innovation, and digital transformation; continued leadership in online protection and savings.

• Persistency and customer NPS targeted for further improvement.

• No explicit forward-looking guidance provided, but capital infusion and strategic partnership with Axis Bank expected to support future growth.