Synopsis: Go Digit General Insurance is in focus after strong Q2 results. The company’s net profit rose 31% YoY to Rs 117 crore on revenue growth of 13% to Rs 2,667 crore, driven by motor insurance. Brokerages like Citi and Jefferies maintained Buy calls, citing healthy business growth, while HDFC Securities stayed cautious due to higher motor loss ratios.
The shares of this leading insurance services provider are in focus after multiple brokerages have reacted to its financial performance in its latest quarter of this financial year. In this article, we will dive more into the details of it.
With a market capitalization of Rs 33,799 crore, the shares of Go Digit General Insurance Ltd reached a day’s high of Rs 373.40 per share, up 3.5 percent from its previous day’s closing price of Rs 360.70 per share. In the last one year, the stock has delivered a poor return of only 11 percent, however, outperforming NIFTY 50’s return of 6.5 percent.
Analyst Comments
Leading global brokerage, CITI, has maintained its Buy call on the stock and has raised its target price to Rs 420 per share from Rs 410, signaling an upside potential of 15 percent from its current market price.
Citi is still optimistic about GoDigit as its profit before tax increased by 52 percent YoY, and the underwriting loss ratio improved to 11.8 percent. It also added that the firm is maintaining a good position with unrealized investment gains of Rs 680 crore, and its market share is expanding in the major segments as a result of a strong B2B growth.
HDFC Securities, on the other hand, maintained an Add rating on the stock but has reduced its target price to Rs 365 per share, from Rs 395 earlier, signaling no major upside from its current market price.
It cited that Go Digit registered consistent NEP growth (+10 percent year over year) but its PAT growth of 30 percent missed estimates because of increased losses in the motor own-damage (OD) segment, where loss ratios increased by 400 bps year over year.
In spite of the fact that the company increased its market share in motor and commercial insurance, the high loss ratios affected the margins. Even though its investment income is still strong, the pressure on motor claims can result in profit fluctuations from time to time.
Also, Jefferies gave the highest target as it maintained a Buy rating on the stock and increased its price target to Rs 440 per share from Rs 410, signaling an upside potential of 21 percent from its current market price. The brokerage cited that the results were in line with its estimates, and the healthy pickup in the motor insurance segment can significantly increase revenue despite upfront costs.
Q2 Results
Go Digit has reported a Gross Written Premium (GWP) of Rs 2,667 crore in Q2 FY26, a growth of 13 percent as compared to Rs 2,369 crore in Q2 FY25. The GWP was primarily driven by third-party motor insurance, which contributed 38.2 percent of the total. This was followed by Motor (OD) with 23.3 percent, health, travel, & personal accident (PA) segments with 19.5 percent, fire insurance with 7.8 percent, and other segments making up the remaining 11.2 percent of the total GWP.
Regarding its profitability, it reported a net profit of Rs 117 crore in Q2 FY26, representing a 31 percent growth compared to Rs 89 crore in Q2 FY25. However, on a quarter-on-quarter basis, it declined by 15 percent from Rs 138 crore.
Additionally, its Asset Under Management (AUM) also grew by 15 percent to Rs 21,345 crore in Q2 FY26 from Rs 18,502 crore in Q2 FY25. Its Solvency ratio also improved from 2.18x to 2.26x in Q2 FY26. However, its loss ratio increased by 240 bps to 73 percent in Q2 FY26 vs 70.6 percent in Q2 FY25.
A higher solvency ratio is beneficial because it indicates that an insurance company is financially strong and stable, with enough capital to meet its future obligations.
A lower loss ratio is a sign of strong underwriting performance and profitability, meaning the insurer is paying out fewer claims compared to the premiums it collects. On the flip side, a high loss ratio, especially one that exceeds 100 percent, indicates that the company is shelling out more in claims than it’s bringing in through premiums.
Go Digit General Insurance offers a wide range of insurance products in India, including motor insurance (for cars, bikes, taxis, trucks), health insurance (including OPD and employee health), and business insurance (like D&O, marine, and workmen’s compensation). It also covers travel, home, shop, and fire insurance, along with life and investment plans like ULIPs, endowment, and money-back policies.
Written by Satyajeet Mukherjee
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