Go Digit General Insurance (GODG.NS): Soft quarter

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Go Digit General Insurance (GODG.NS): Soft quarter

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23 Jul 2026 11:33:22 ET │ 13 pages

Go Digit General Insurance

(GODG.NS)

Soft quarter

CITI'S TAKE

Go Digit reported a soft quarter with a 28% YoY decline in PBT (IGAAP; IFRS Buy

PBT +14.8% YoY). Elevated competitive pressure is driving cautious fresh Price (23 Jul 26 15:30) Rs280.85

business underwriting (net earned premium +8% YoY), elevated pressure on Target price Rs385.00↓motor OD net incurred claims ratio (weakness in PV portfolio and lower new

vehicle underwriting with corrective action implemented by 4QFY26 exit); from Rs405.00

up 660 bps YoY, and one-off lumpy losses in fire/PA portfolio led to drag in Expected share price return 37.1%

overall profitability. Digit has previously swayed through competitive

Expected dividend yield 0.0%dynamics and weakening book quality, in any particular segment, in an agile

manger showcasing benefits on multi-line mode, distribution prowess and Expected total return 37.1%

management’s business acumen. Headroom to increase equity mix within Market Cap Rs259,667M

overall AUM (<9% currently compared to >15% for leading peers), scope to

US$2,689Mfurther increase investment leverage and gradual realization of operating

efficiencies provide comfort on gradual recovery in operational

performance. Rollover to Jun’28E. TP Rs385. Buy.

Price PerformanceMotor TP: management highlighted conserving reserving — Management

highlighted that the recent ruling by the honourable Supreme Court in India driving (RIC: GODG.NS, BB: GODIGIT IN)

higher payout liability for homemakers does not necessarily drive higher motor TP

provisions immediately (motor TP loss ratio +60 bps YoY). Motor TP loss provisioning

is based on a multitude of factors including legal inflation, amongst others.