1. At a Glance
Go Digit General Insurance posted Q1 FY26 PAT ₹138 Cr (+37% YoY) on gross premium ₹2,982 Cr (+12%). Solvency ratio is a comfy 2.27x, AUM sits at ₹20,861 Cr. Stock trades at a nosebleed P/E 68.8 – that’s fintech startup territory, not a general insurer.
2. Introduction
Insurance is supposed to be boring – slow growth, steady cash, predictable profits. Go Digit says, “Nah, we’re a tech play with a license to burn cash (but not lately).” With a digital-first model and Virat Kohli’s ads still in memory, the stock has run but fundamentals are catching up.
3. Business Model (WTF Do They Even Do?)
A full-stack digital insurer, Go Digit designs, prices, and sells non-life products:
- Motor Insurance – main revenue driver
- Health & Travel – growing segments
- Property, Marine, Liability – niche but adds spice
They rely on tech distribution, partnerships, and aggressive underwriting.
4. Financials Overview
Q1 FY26:
- Gross Premium: ₹2,982 Cr (+12%)
- PAT: ₹138 Cr (+37%)
- Combined Ratio: ~103% (estimated)
- Solvency: 2.27x
Verdict: Growth is healthy, but underwriting margins still need an energy drink.
5. Valuation – What’s This Stock Worth?
- P/E: 68.8 – priced like a unicorn, not an insurer
- ROE: 11.9% – okay, but doesn’t justify the premium
Fair Value using peer multiples (ICICI Lombard P/E 35): ₹220–₹280.
At ₹344, optimism is already baked in.
6. What-If Scenarios
- If digital distribution scales: Cost ratios improve, profits surge.
- If claims spike (natural disasters/health): P&L takes a punch.
- If regulator caps premium hikes: Margins suffer.
- If IPO hype fades: Valuation cools down faster than a summer storm.
7. What’s Cooking (SWOT)
Strengths: Digital edge, strong solvency, rising AUM.
Weaknesses: Thin margins, high expense ratios, no dividend.
Opportunities: Health insurance boom, cross-selling, tech-driven underwriting.
Threats: Regulatory risks, competition from ICICI Lombard, Star Health.
8. Balance Sheet 💰
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity | 874 | 875 | 923 |
| Reserves | 1,565 | 1,844 | 3,391 |
| Borrowings | 0 | 350 | 350 |
| Total Liabilities | 13,490 | 16,958 | 21,461 |
Reserves growing fast, borrowings negligible, solid capital base.
9. Cash Flow (FY23–FY25)
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | 2,250 | 1,720 | 1,604 |
| Investing | -2,514 | -1,986 | -2,837 |
| Financing | 397 | 342 | 1,092 |
| Net Cash | 133 | 77 | -141 |
Cash burn in investments remains high, typical for insurers.
10. Ratios – Sexy or Stressy?
| Metric | FY24 | FY25 |
|---|---|---|
| ROE (%) | 5 | 11.9 |
| ROCE (%) | 5 | 10.8 |
| OPM (%) | -3 | 2 |
| D/E | 0.0 | 0.1 |
Return profile improving, but far from stellar.
11. P&L Breakdown
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Premium | 5,885 | 8,147 | 9,371 |
| Operating Profit | 50 | -269 | 121 |
| PAT | 36 | 182 | 425 |
Clear turnaround from loss-making to profitable.
12. Peer Comparison
| Company | P/E | ROE% | PAT Qtr Cr |
|---|---|---|---|
| Go Digit General | 68.8 | 11.9 | 138 |
| ICICI Lombard | 35.3 | 18.8 | 747 |
| Star Health | 38.6 | 9.6 | 0.5 |
| General Insurance | 8.7 | 12.7 | 2,499 |
Go Digit is the priciest kid on the block.
13. EduInvesting Verdict™
Go Digit is a cool digital insurer riding tech hype, with growth in premiums and profits. But valuation screams, “You’re paying for tomorrow’s profits today.”
A growth story? Yes. A safe bet? Only if you’re ready to stomach volatility.
Written by EduInvesting Team | 28 July 2025
Tags: Go Digit, Insurance, Q1 FY26, Fintech Insurance, EduInvesting Premium
