The New India Assurance Company Limited Earnings Summary — Q4 FY2026
NIACL Reports Robust Q4 FY2026 Profit Growth Driven by Exceptional Other Income
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 5.1% sequentially in Q1 FY2027.
- Revenue of ₹11,900 Cr is 1.5% higher year-on-year.
- Revenue has compounded at 0.8% annualised over the last 10 quarters.
- Net profit of ₹-243 Cr is 160.6% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at 36.3% annualised across the period.
- Operating margin stands at -1.7% in Q1 FY2027.
- Operating margin compressed by 334 bps year-on-year.
- Over the last two years operating margin has contracted by 431 bps.
- PBT margin is -1.5%.
- Expenses grew 5.0% against revenue growth of 1.5%.
- Operating profit of ₹-205 Cr is 208.4% lower year-on-year.
- Operating leverage has been under pressure recently.
- 5 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 41/100 (Moderate) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 11,900 | 12,544 | 12,069 | 13,450 | 11,719 | 11,664 | 10,703 | 10,786 | 10,418 | 11,686 |
| Expenses | Stable | 12,105 | 12,525 | 11,863 | 13,524 | 11,530 | 11,239 | 10,605 | 10,646 | 10,148 | 11,252 |
| Operating Profit | Volatile | -205 | 19 | 206 | -74 | 189 | 426 | 98 | 140 | 270 | 434 |
| Operating Margin | Volatile | -1.7% | 0.1% | 1.7% | -0.6% | 1.6% | 3.6% | 0.9% | 1.3% | 2.6% | 3.7% |
| Other Income | Improving | 27 | 427 | 166 | 98 | 202 | 77 | 9 | 1 | 3 | 36 |
| Interest | Insufficient data | — | — | — | — | — | — | — | — | — | — |
| Depreciation | Insufficient data | — | — | — | — | — | — | — | — | — | — |
| Profit Before Tax | Volatile | -179 | 446 | 372 | 23 | 391 | 502 | 107 | 141 | 272 | 470 |
| Tax | Volatile | 65 | -118 | -5 | 3 | -1 | 181 | -237 | 67 | 39 | 162 |
| Net Profit | Volatile | -243 | 578 | 380 | 54 | 400 | 359 | 349 | 90 | 239 | 311 |
| Net Margin | Volatile | -2.0% | 4.6% | 3.1% | 0.4% | 3.4% | 3.1% | 3.3% | 0.8% | 2.3% | 2.7% |
Key Takeaways
- Net profit surged to ₹580 Cr in Q4 FY2026, marking a significant 62.9% YoY increase despite operational pressure.
- Operating profitability remains extremely thin at 0%, indicating continued challenges in underwriting efficiency.
- Total revenue (Sales) grew by 7.5% YoY to ₹12,544 Cr, representing a stable trajectory in market volume.
- A massive spike in 'Other Income' to ₹427 Cr for the quarter was the primary driver of the bottom-line performance.
- Tax expense for the quarter was a net credit (-26%), further boosting the final net income figure.
- The company maintains its status as India's largest non-life insurer with zero debt and substantial reserves exceeding ₹33,800 Cr.
Management Guidance
Management remains focused on maintaining market leadership; however, there is limited strategic clarity on achieving sustainable double-digit ROE through underwriting alone.
Sentiment Shift
Stable
While net profit is up, the reliance on investment income and tax credits rather than core underwriting operating profit maintains a cautious outlook.
Outlook
NIACL is likely to continue its dependence on investment realizations and other income to maintain profitability as private sector competition prevents significant operating margin expansion.
From the Annual Report (Key Quotes)
“Financial quality is categorized as 'Weak' due to the inability to generate consistent underwriting profits.”
“The business heavily relies on investment income to offset operating losses.”
“Valuation at a discount to book value reflects market skepticism regarding efficiency.”
Official Quarterly Documents
Ask AI about this quarter
This summary is AI-generated from The New India Assurance Company Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.
← Back to The New India Assurance Company Limited AI analysis