GODIGIT delivered a largely in-line performance during Q2FY26, with combined ratio at 111.4% (down by 70bps YoY) vs our estimate of 111%. However, PAT at Rs1.17bn (+30% YoY) was lower than our estimate of Rs1.2bn. GODIGIT clocked better than industry growth in the Motor segment, with ~6.2% market share in Motor OD led by healthy growth in the renewal book. During Q2, the company witnessed growth in the Government Mass Health segment, which impacted the loss ratios in the health segment. The management remains optimistic about healthy growth in H2, driven by the GST rate reduction. While the management continues to favor an opportunistic growth strategy, it maintains focus on driving core insurance profitability with normalized impact from capital gains and reserve releases.
OutlookTo bake in the Q2 developments, we slightly increase our GWP estimates, while our CoR estimates remain broadly unchanged leading to ~1% increase in PAT over FY26-28E. We maintain SELL on GODIGIT and Sep-26E TP of Rs290, implying FY27E P/E of ~38x.
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