Max Financial Services (MFSL) Q2 26/27 earnings summary

Executive summary

• H1 FY27 consolidated revenue from operations was ₹26,570.60 crore; continuing-operations PAT was ₹218.59 crore, versus ₹92.89 crore a year earlier.

• H1 VNB rose 21% to ₹1,180 crore, with margin expanding to 25.4%; management expects stronger APE growth and further margin improvement in H2.

• Proposed EoM and commission reforms could reset industry economics; management expects limited net impact, while final rules and the proposed amalgamation remain approval-dependent.

Financial highlights

• H1 consolidated revenue including investment income was ₹26,582 crore, up 17%; revenue excluding investment income was ₹17,484 crore, up 16%.

• H1 gross written premium rose 17% to ₹18,066 crore; renewal premium increased 18% to ₹11,247 crore.

• Total APE increased 11% to ₹4,638 crore; individual adjusted FYP rose 12% to ₹4,368 crore.

• H1 VNB rose 21% to ₹1,180 crore; Q2 VNB increased 15% to ₹734 crore.

• H1 PBT was ₹246.69 crore and continuing-operations EPS was ₹5.11; Q2 continuing-operations PAT was ₹100.30 crore versus ₹5.91 crore a year earlier.

Outlook and guidance

• H2 APE growth is expected to accelerate versus H1; management expects quarterly margins to improve and FY27 VNB margin closer to 26%, within a 25%-26% range.

• EoM is expected to move from roughly 25% toward 15%, then 12.5%; commission realignment, GST treatment and efficiency measures are expected to support the transition.

• Core operating expenses are expected to grow 8%-10%; full-year total expense-to-EoM ratio may remain near last year’s 25% level including GST.

• Annuity refresh is planned for Q4; management expects category momentum to remain steady.