Go Digit Q2 Profit Drops 31 Percent Amid Rising Operating Costs
Insurtech firm Go Digit reported a 31% year-on-year decline in quarterly net profit to ₹142.4 Cr, driven by higher insurance service expenses.
Go Digit, the Indian insurtech company, posted a net profit of ₹142.4 Cr for the September quarter (Q2 FY27), marking a 31.1% decline from the ₹206.8 Cr reported in the same period last year. The result also reflects a significant sequential drop of 62.4% from the ₹378.6 Cr earned in the June quarter.
The decline in profitability occurred despite a marginal 1.7% rise in insurance revenue, which totaled ₹2,720.5 Cr. The contraction was primarily driven by a 22.4% surge in insurance service expenses, which climbed to ₹2,607.7 Cr. Specifically, incurred claims rose by 9.2% to nearly ₹1,968 Cr, significantly impacting the company's operating margin.
Motor insurance remains the company's core revenue driver, with third-party motor insurance revenue growing 8.3% and own-damage motor revenue increasing 11.4%. While investment income improved by 20.6% on a year-on-year basis, it was insufficient to offset the pressure from the insurance service side of the business, where the service result sank by 73.4%.
For the first half of the fiscal year, Go Digit's total net profit declined by 3.2% to ₹521 Cr. Following the results, the company's shares closed 1.05% higher at ₹260.30.