Max Financial Services Ltd

Debenture issue by Axis Max Life (subsidiary)

• Axis Max Life allotted 68,600 unsecured subordinated NCDs on Sep 28, 2026.
• Each debenture has face value INR 1,00,000; total face value INR 686 crore.
• Total consideration expected: INR 686 crore 30 lakh under multiple yield allotment.
• Tenor 10 years from allotment; maturity in 2036; call option after year 5.
• Private placement via NSE EBP platform; allotment on multiple yield basis.
• Intended listing on NSE; final listing approval pending.
• Instrument described as unsecured, subordinated, listed, rated, redeemable, taxable, non-cumulative, non-convertible.
• Axis Max Life is a material subsidiary of Max Financial Services; LODR disclosures filed.
• Executive Committee approved the allotment on Sep 28, 2026; per board resolution.
• Listing is subject to final regulatory approvals.

Meeting Details

• Board meeting scheduled for October 27, 2026; time and venue not disclosed.

Key Agenda Items

• Consider unaudited standalone and consolidated results for Q2 FY2026 (quarter and H1 ended Sep 30, 2026).

Other Notes

• Trading window closed Oct 1, 2026 to Oct 29, 2026 (48 hours post-results disclosure).
• PAN tagging of immediate relatives of designated persons by depositories.

ESG rating disclosure

• Niche assigned an ESG rating of 71 on a 0-100 scale to MFSL.
• MFSL did not engage Niche; rating prepared independently from public data.
• Rating received by MFSL on Sep 17, 2026 at 06:52 PM.
• MFSL disclosed the rating voluntarily to stock exchanges on Sep 18, 2026.
• Rating reflects MFSL's Environmental, Social, Governance performance based on available data.
• No impact on operations or financials disclosed.

ESG Rating Disclosure

• Disclosure of Crisil ESG Rating and Core ESG Rating for Max Financial Services.
• ESG rating is 70 and Core ESG rating is 77 on a 0-100 scale.
• Ratings were received via email on September 10, 2026 at 10:01 PM.
• Company reviewed the rating on September 11, 2026 and disclosed to stock exchanges.
• Crisil prepared the report independently using publicly available data; MFSL did not engage Crisil.
• Disclosure is voluntary and intended for wider dissemination to stakeholders.
• No impact on operations or financials; this is an informational update.

Meeting Details

• Date: 18 September 2026; physical group meetings in Gurgaon at Jefferies India Forum.
• Event/organiser: Jefferies India Forum.
• Mode and type: Physical, group meetings.
• Participants: Senior management to participate.
• Availability: Investor Presentation available on company website and stock exchanges.
• Notes: Meetings subject to changes due to exigencies.

Regulatory update

• SEBI final order disposed proceedings against 12 noticees, without any direction or penalty.
• 13 present/former non-exec independent directors filed settlement applications; final orders awaited.

Financial Performance

• Revenue excluding investment income rose 18% to INR 7,289 crore (Q1 FY27).
• Consolidated PAT at MFSL stood at INR 180 crore.
• Axis Max Life GWP grew 19% to INR 10,610 crore.
• Renewal premium rose 20% to INR 4,639 crore.
• Individual sum assured grew 32% YoY to INR 1,17,000 crore.
• Embedded value end of quarter: INR 30,415 crore, up 15% YoY.
• VNB margin 23.2% in Q1 FY27; up from 20.3% in Q1 FY26.
• AUM crossed INR 2 lakh crore; ended at INR 2.03 lakh crore (June 30, 2026).
• Annualized ROEV 14.9% in Q1 FY27; no operating variance vs prior year.
• Solvency at end-June 198%; regulatory minimum 150%.

Operating / Segment Update

• APE grew 15% in Q1 FY27; offline proprietary 15%, partnerships 16%.
• Online business led with 27% APE growth; Axis Bank 14%, other partners 21%.
• GCL grew 57% in Q1 FY27.
• 45% of GCL sourced from partners added in last 3 years.
• Launched USD-denominated Smart Gift Plan; Aurus for HNIs.
• D2C platform mSpace: 36,000 MAU; 90% adoption.
• App ecosystem: over 10 lakh installs; 4 lakh MAU.
• AI/ML models in production: 30+; recruitment leads 38,000; sales interactions 27,000.
• 50% of quotes cross to higher-value variants.
• NPS: Overall 63; Touchpoint 65; Relationship 61.
• InstaClaim: 67% of eligible claims settled within one day.
• Persistency: 13-month 83%; longer-tenure persistency improving (37th, 49th, 61st months).

Balance Sheet and Liquidity

• Axis Bank infusion: INR 381 crore; stake expanded to 19.99%.
• QIP enabling approval valid until May next year.
• Sub-debt redemption ~INR 480–490 crore on 31 July; re-raise planned.
• RBC framework progress; potential buffers for growth capital.
• No immediate need for additional capital; timelines to be advised.

Projects and Capex / Digital Initiatives

• Launch of USD-denominated Smart Gift Plan; Aurus for HNIs.
• D2C engine mSpace: 36,000 monthly active users; 90% adoption.
• App ecosystem: 10 lakh installs; 4 lakh monthly active users.
• AI-driven platform: 30+ models in production; 38k recruitment leads; 27k sales interactions.

Outlook and Guidance

• Outlook: management confident in delivering guidance to outperform the industry.
• VNB to grow faster than APE; margin uplift expected.
• GST impact largely behind us; future GST-related effects anticipated to be minimal.
• Scheme of arrangement process to take 6–12 months after filing; NCLT process involved.
• QIP approval relates to growth capital; RBC framework progress monitored.

Q&A Highlights

• Margin uplift largely due to protection mix and yield curve; GST offset.
• Offline proprietary growth slowed; some one-offs due to cancellations; normalization expected.
• Persistency impacted by a product variant; some policies did not meet quality standards.
• PAR APE growth 48%; PPT not a driver; scale driven by mix.
• Annuity growth across channels; new variable annuity launches.
• Channel strategy: Axis Bank partnerships; counter-share ~25%+ across 7 banks; several banks now number one.

AGM Details

• AGM held on 19 August 2026 via VC/OAVM with voting cut-off 12 August 2026.

Key Resolutions

• Resolution 1 (Ordinary): Adoption of standalone financials and reports approved.
• Resolution 2 (Ordinary): Adoption of consolidated financials approved.
• Resolution 3 (Ordinary): Re-appointment of Analjit Singh on rotation approved.
• Resolution 4 (Special): Remuneration to Jai Arya, Independent Director approved.
• Resolution 5 (Special): Remuneration to Sir Richard Stagg, Independent Director approved.

Dividend

• No dividend proposed or declared.

Directors & Remuneration

• Analjit Singh re-appointed; independent directors Jai Arya and Richard Stagg remuneration approved.

AGM Details

• AGM held via VC/OAVM on 19 August 2026 from 10:00 to 10:59 IST.

Key Resolutions

• Ordinary: adopt standalone financial statements for year ended 31 March 2026.
• Ordinary: adopt consolidated financial statements for year ended 31 March 2026.
• Ordinary: re-appoint Analjit Singh on rotation as Director.
• Special: remuneration payment to Independent Director Jai Arya.
• Special: remuneration payment to Independent Director Sir Richard Stagg.

Voting Status

• Voting results to be announced within two working days after conclusion.
• Results will be displayed at the registered office and on company/ NSDL/NSE websites.