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Informist, Wednesday, Nov. 12, 2025

 

--Max Financial: See strong growth momentum in protection 
--Max Financial: Holding on to growth guidance of 15-17% for FY26 
--Max Financial: Confident of maintaining new business margin at 24-25% 
--CONTEXT: Comments by Max Financial's mgmt in post-earnings analyst call 

 

By Pratiksha and Navya Sruthi

 

MUMBAI/NEW DELHI – Max Financial Services Ltd. is confident of maintaining its new business margin at 24-25% in 2025-26 (Apr-Mar), the company's management said in a post-earnings analyst concall Wednesday. "..despite the impact of a series of actions on cost, product mix, execution, we are confident that we will maintain the margin guidance that we had given earlier, of improving the margins from the previous year and be in the range of 24 to 25%," it said.

 

The new business margins during Apr-Sept rose 210 basis points to 23.3%. Max Financial, the holding company of Axis Max Life Insurance Ltd., reported a consolidated net profit of INR 41.2 million for Jul-Sept, down 96% on year due to a decline in policyholders' income from life insurance operations. Sequentially, the net profit was down 94%.

 

The company also held on to its growth guidance of 15-17% for FY26. "We're hopeful that on the second half, we'll be better, but right now, just holding on to the guidance. If we have a positive surprise to deliver, I'm sure that could delight you as well," the management said. 

 

The company expects Axis Max Life Insurance's protection segment to see strong growth momentum. The company's retail protection and health annualised premium equivalent grew 36% to INR 5.40 billion during Apr-Sept, against INR 3.96 billion a year ago. 

 

The management said that the recent cut in goods and services tax rates had further improved the affordability of insurance products, and that it had passed on the full benefit to all its customers. "We believe this will support stronger demand over the medium to long term. In fact, early signs of increased traction, particularly in the protection segment, are already visible," it said. 

 

"In the month of September, approximately 75% of sales were impacted due to GST credit disallowances, which contributes to around 0.6% of margin impact in first half," it said. "Thereby, the GST impact is close to 300 to 350 basis point on run rate basis." Effective Sept. 22, the government removed GST on all individual health and life insurance premiums. Earlier, health and life insurance products attracted GST at the rate of 18%.

 

At 1120 IST, shares of the company were 2.6% higher at INR 1,677.70 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

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