Go Digit Q1 PAT falls 38% YoY to ₹86 Cr as motor claims widen underwriting loss

Go Digit General Insurance opened FY27 with a profit-over-growth quarter: standalone total income rose 8.3% YoY to ₹2,359 Cr (net premium earned ₹2,007 Cr, +7.6%), but net profit fell 37.5% to ₹86.4 Cr from ₹138.3 Cr a year ago. The gap between a growing topline and a shrinking bottom line is the whole story — net margin compressed to 3.7% from 6.4% YoY (and 4.8% last quarter), driven entirely by underwriting deterioration rather than any one-off. The standalone-only filing (no consolidated section) is unaudited and limited-reviewed.

The squeeze sits on the claims and motor lines. The incurred claim ratio worsened to 73.3% from 70.3% YoY and the combined ratio widened to 112.3% from 108.6%, pushing the overall underwriting loss to ₹282.0 Cr from ₹193.6 Cr. Motor — the largest book — drove it, with a segment underwriting loss of ₹282.1 Cr versus ₹232.3 Cr a year ago; operating profit halved to ₹70.4 Cr from ₹120.9 Cr, and a higher effective tax rate (25.2% vs 13.9%) deepened the PAT fall below the PBT decline (−28%). QoQ comparisons (income −10.7%, PAT −42.2% vs Q4) are largely seasonal and flattered by Q4's ₹468.7 Cr Excess-EOM one-off, so YoY is the fair read.

The stock went into the print at ₹262.9, down 6.4% over the past month of trading.

The print is consistent with what management flagged on the Q4 call: no formal quantitative guidance is given, and the company reiterated it expects motor own-damage loss ratios to stabilise from Q2 FY27 after corrective pricing in private-car/OD segments — meaning Q1 pressure was expected, not a surprise, but the promised turn has not yet shown in the numbers. Management framed this as a deliberate choice to prioritise profitability over growth, softening premium in segments with inadequate rates. Solvency stayed robust at 2.43 (vs regulatory 1.5). The quarter also ran against a busy corporate backdrop — CCI approval and NCLT first-motion clearance for the Go Digit Infoworks amalgamation, and the 10th AGM rescheduled to Aug 18 — none of which affects the reported P&L. No sell-side consensus estimate was published for the quarter, so the print cannot be graded beat/miss against the Street.