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Max Financial Services Ltd has released its financial results for the quarter ended June 2025 (Q1 FY26), unveiling a mixed set of numbers that underscore both challenges and resilience within its operations. Here’s an in-depth analysis of the major takeaways from today’s announcement, with a close look at revenue performance, profitability, business drivers, and subsidiary achievements.
Introduction
Max Financial Services reported consolidated total revenue from operations of ₹128.22 billion (Rs12,822 crore) in Q1 FY26, growing 18% over the previous year. However, net profit for the quarter saw a sharp decline, falling to ₹696.4 million (Rs69.6 crore), a 45.3% year-on-year drop. Despite the profit drop, several operational metrics at the subsidiary Axis Max Life Insurance signal strength, with robust growth in new business and expanding market share.
Key Highlights of Q1 FY26
Revenue Performance
Total consolidated revenue from operations grew 18% year-on-year, reaching ₹128.22 billion, reflecting continued business expansion and higher sales across channels.
Net interest income rose by 16.8% to ₹1.32 billion in Q1 FY26 compared to ₹1.13 billion in the same period last year, indicating success in treasury and asset management.
Profitability Metrics
Net profit dropped significantly by 45.3% year-on-year to ₹696.4 million from ₹1.27 billion in Q1 FY25. The company attributes this decline to increased expenses and one-off items impacting the bottom line.
Earnings per share (EPS) followed this downtrend, reflecting the subdued profitability.
Subsidiary Performance: Axis Max Life Insurance
Individual Adjusted First Year Premium registered a robust 23% increase year-on-year, up to ₹15.53 billion, clearly outpacing the industry’s general growth rates.
The value of new business (VNB), a core profitability indicator in life insurance, grew impressively by 32% to ₹3.35 billion. This was driven by a better product mix and focus on profitable segments.
Gross Written Premium (GWP) stood at ₹63.97 billion, growing 18% annually, supported by renewals and increased new business.
Axis Max Life Insurance expanded its market share—up 121 basis points to 10% in the private sector—a signal of increasing brand presence and successful partnerships.
Embedded value, representing the present value of future profits from policies in force, rose 20% year-on-year to ₹264.78 billion, with an operating return on embedded value (RoEV) of 14.3%.
Assets under management (AUM) ended at ₹1,832.11 billion, 14% higher than a year ago.
Operational and Strategic Developments
New business growth was underpinned by outstanding performance in annuity (up 40%), retail protection and health (up 36%), and the non-participating (NPAR) savings segment (up 41%).
Sales of new retail policies increased by 10%, and the sum assured for individual new business surged by 26%.
The company onboarded 15 new business partners (eight in retail, seven in group), further broadening its distribution network.
An improvement in new business margins to 20.1% in Q1 FY26, up from 17.5% in Q1 FY25, reflects tightening focus on product profitability and distribution efficiency.
Market Reaction
Max Financial Services shares edged up 0.99% on the BSE, closing at ₹1,504.30, mirroring investor optimism on subsidiary performance and business momentum despite weaker profitability.
Conclusion
The Q1 FY26 results of Max Financial Services are a tale of two halves: while headline net profit felt the pinch of higher expenses, operational and
business growth indicators remained strong—largely thanks to the performance of Axis Max Life Insurance. Expansion in new business, improvement in margins, and rising market share suggest the long-term strategy is intact, even as the company navigates short-term profit challenges. The ongoing addition of partners, sharper focus on insurance product segments, and healthy embedded value gains are setting the stage for a stronger performance in the coming quarters.
Source: CNBC TV18
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