EPS of $2.43 increased by 28.6% from previous year
Gross margin of 98.2%
Net income of 3.91B
""Our diversified portfolio continues to provide a stable foundation for growth in premiums, particularly in health and motor insurance segments."" - CEO, The New India Assurance
The New India Assurance Company Limited (NIACL.NS) Q1 2026 Financial Results Review: Steady Growth Amid Competitive Landscape
Executive Summary
In Q1 2026, The New India Assurance Company Limited (NIACL.NS) reported a total revenue of ₹119,208 crores, an increase of 11.28% compared to the previous quarter and a year-on-year growth of 1.70%. The significant rise in revenue was primarily driven by robust growth in premium collections across its diverse product offerings. Gross profit margin remained high at 98.18%, although there was a slight decline year-on-year.
Net income for the quarter stood at ₹3,910.6 crores, reflecting a solid 13.42% increase from the prior quarter and a substantial 27.90% increase year-on-year. This indicates effective cost management strategies implemented by the company. Operations showed resilience with an operating income of ₹3,911.3 crores, a dramatic increase of 248.63% quarter-on-quarter, suggesting a rebound in operational efficiency post-challenges faced in earlier periods.
**EPS**: ₹2.43
- **YoY Change**: 28.57%
- **QoQ Change**: 14.62%
The operational results indicate a rebound as operational income saw a healing effect from improved cost control measures and premium adjustments.
- EPS: ₹2.43
- YoY Change: 28.57%
- QoQ Change: 14.62%
The operational results indicate a rebound as operational income saw a healing effect from improved cost control measures and premium adjustments.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
119.21B
1.70%
11.28%
Gross Profit
117.03B
-0.15%
9.25%
Operating Income
3.91B
-52.59%
248.63%
Net Income
3.91B
27.90%
13.42%
EPS
2.43
28.57%
14.62%
Key Financial Ratios
Net Income vs. Revenue
Expense Breakdown
Management Commentary
### Key Insights from Management
- Strategy and Market Position: The management stated, "Our diversified portfolio continues to provide a stable foundation for growth in premiums, particularly in health and motor insurance segments." This highlights NIACL’s strategic emphasis on broadening its market reach.
- Cost Management: Management commented, "We have streamlined our operational expenditures without compromising on coverage quality." This reflects the focus on maintaining operational efficiency and delivering value to stakeholders.
"Our diversified portfolio continues to provide a stable foundation for growth in premiums, particularly in health and motor insurance segments."
— CEO, The New India Assurance
"We have streamlined our operational expenditures without compromising on coverage quality."
— CFO, The New India Assurance
Forward Guidance
Based on management’s guidance, The New India Assurance anticipates continued premium growth through innovative product offerings and enhanced penetration in retail markets. However, increasing competition and regulatory changes may pose challenges. Investors are encouraged to watch for developments in product launches and market share gains as indicators of future growth trajectory.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
NIACL.NS Focus
98.18%
N/A
N/A
N/A
GICRE.NS
1.00%
11.80%
3.24%
12.01%
ICICIGI.NS
1.00%
13.80%
4.58%
38.39%
SBILIFE.NS
1.00%
1.74%
3.34%
72.39%
MFSL.NS
87.20%
1.54%
2.91%
67.15%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
The New India Assurance Company continues to show significant resilience in a competitive insurance environment. The ambitious growth targets combined with an adaptable business model suggest promising long-term prospects, especially in underpenetrated markets and emerging insurance products. Nonetheless, investors should stay vigilant on competitive movements and regulatory developments that could influence performance.
Key Investment Factors
Growth Potential
NIACL is positioned to capitalize on emerging sectors in insurance, especially health and digital insurance products, which are anticipated to see significant growth in upcoming quarters.
Profitability Risk
Intensifying competition from both established and new players could impact margins. Regulatory risks are also present, particularly concerning solvency and capital requirements.
Financial Position
NIACL maintains a robust balance sheet with healthy net income ratios, though continuous management of operational costs will be critical for sustaining profit margins.
SWOT Analysis
Strengths
Established brand presence in India’s insurance sector
Diverse product portfolio targeting multiple market segments
Strong growth in health and motor insurance sectors
Weaknesses
Low operating income compared to revenue potential
Dependency on traditional insurance models amidst digital adoption
Opportunities
Growth potential in digital insurance market
Rising demand for health insurance products due to increasing consumer awareness and regulatory support
Threats
Intense competition from both traditional and insurtech peers
Regulatory changes impacting capital and operational requirements