The shares of Max Financial Services hit a fresh record high on November 12 as brokerages remained positive despite the firm reporting a sharp fall in net profit and revenue during the second quarter of the ongoing FY26. Aavas Financiers shares meanwhile jumped nearly 8 percent.
Max Financial Services shares rose nearly 5 percent to hit a fresh 52-week high of Rs 1,715.2 apiece. Aavas Financiers shares meanwhile gained nearly 8 percent to trade at a three-month high of Rs 1,748.70 apiece.
Max Financial Services Q2 Results:
Max Financial on November 11 reported a consolidated net profit of Rs 4.12 crore for the second quarter of the financial year 2026. This marks a 96 percent year-on-year (YoY) decrease from the Rs 112.56 crore reported in the corresponding quarter of the previous financial year.
The firm’s revenue from operations meanwhile fell nearly 27 percent YoY to Rs 9,792 crore in Q2 FY26, from Rs 13,371.86 crore in Q2 FY25. It said that its value of new business (VNB) has increased by 27 percent YoY in the first half of the ongoing financial year 2026 (April-September).
JM Financial noted that the company has reported a APE and VNB growth of 15 percent and 27 percent YoY respectively during the quarter under review. It added that while growth was in line, VNB margin of 25.5 percent was a positive surprise.
"This was led by a margin-accretive product mix –ULIP volumes declined while annuity and protection grew 122%/34%. Also, par and non-par business grew 41%/17% YoY. While we had anticipated the mix shift away from ULIPs towards non-linked savings, we had expected margins to be adversely affected by GST 2.0," the domestic brokerage said.
Jefferies said that better product mix and positive yield curve moves lifted profit margins. The international brokerage has named Max Financial as its top insurance pick.
Motilal Oswal said the company maintains better-than-industry APE growth trajectory. It attributes strong expansion of VNB margin to rise in contribution of protection, non-par and annuity businesses.
Aavas Financiers Q2 Results:
Aavas Financiers on November 11 reported a net profit of Rs 163.93 crore for Q2 FY26, marking a 10.8 percent YoY rise from the Rs 147.90 crore net profit reported in Q2 FY25. The firm’s revenue from operations meanwhile rose over 15 percent YoY to Rs 667 crore.
The firm’s assets under management (AUM) grew 16 percent YoY to Rs 21,356.6 crore, while net interest margin improved 26 basis points to 8.04 percent during the quarter under review.
PL Capital kept an ‘Accumulate’ call on the stock, with a target price of Rs 1,900 apiece. This implies an upside potential of more than 17 percent from the stock’s previous closing price.
The domestic brokerage noted that the firm saw a good quarter led by better margins, higher fees & assignment income and lower opex. “While company has guided to medium term growth of 20% per annum, its larger size and competition for bigger HFCs to scale up affordable housing, could hinder credit flow or pricing,” it noted.
Motilal Oswal kept a ‘Neutral’ call on the stock, with a target price of Rs 1,800 per share. This implies an upside potential of more than 11 percent from the stock’s previous closing price.
The domestic brokerage has raised its FY26/FY27 EPS estimates by 4 percent/2 percent to factor in higher assignment income. “For a re-rating in its current valuation multiples, we believe that the company will need to deliver on its guided AUM growth and exhibit better readiness for an acceleration of its AUM growth from FY27 onwards,” it said.
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(With inputs from agencies)
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