Max Financial Services Ltd

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.

NRC deviation and remediation

• Temporary NRC deviation occurred after retirement of Independent Director, creating shortfall for two days in quarter ended 31-Mar-2026.
• Bharat Anand joined as Independent Director and was co-opted to NRC on 9-Apr-2026, restoring compliance.
• Current NRC composition: four Independent Directors out of six; no NRC meetings were held during non-compliance.

Fines and governance follow-up

• Total fine payable (incl GST) Rs 4,720; payable within 15 days from the notice.
• Fines payable to NSE and BSE; payment via NEAPS/RTGS.
• Promoters informed; fine remitted to both stock exchanges.
• Board to report on the matter at the next meeting and implement preventive governance measures.

Overview

• Axis Max Life 3M FY'27 FYP up 17% YoY to ₹1,810 crores; private market share to 10.1%.
• GWP up 19% YoY to ₹7,607 crores; APE ₹1,922 crores.

Profitability & Value

• VNB up 33% YoY to ₹446 crores; NBM 23.2%.
• Embedded Value up 15% to ₹30,415 crores; RoEV 14.9%.

Scale & Capital

• AUM crossed ₹2,00,000 crores; up 11% YoY to ₹2,02,621 crores.
• Solvency at 198%.

Operational Momentum

• Policies: 187k; Sum Assured: 1,17,277.
• Online channel +27% YoY; GCL +57%; protection +44%; annuity +116%.

Key Highlights (3M FY'27)

• MFSL revenue excluding investment income rose 18% to Rs 7,289 crore.
• Consolidated PAT stood at Rs 118 crore.
• Individual Adjusted FYP rose 17% to Rs 1,810 crore.
• Private market share at 10.1% in 3M FY'27.
• Total APE grew 15% with 12% NOP growth.
• VNB for 3M FY'27: Rs 446 crore, up 33%.
• NBM 23.2%; Operating RoEV 14.9%; Embedded Value Rs 30,415 crore.
• Axis infusion of Rs 381 crore raised Axis Bank stake to 19.99%.
• AUM reached Rs 2,02,621 crore; 11% YoY.
• GWP Rs 7,607 crore; Renewal Premium Rs 4,639 crore.
• Policyholder Opex to GWP ratio: 16.0%.
• Solvency ratio: 198% (199% prior).
• Total APE 1: Rs 1,922 crore; Ind Adjusted FYP: Rs 1,810 crore.
• Embedded Value: Rs 30,415 crore; 5-year EV CAGR: 20%.

Axis Max Life – Growth & Scale

• AUM surpassed Rs 2 lakh crore.
• 5-year CAGR: APE in proprietary channels 28%.
• Retail Protection APE grew 44%; Annuity 116% YoY.
• GWP grew 19% in 3M FY'27; 10 new partners onboarded.

Strategy & Digital Initiatives

• Focus on proprietary growth, bancassurance, and online leadership.
• Launched USD-denominated Smart GIFT Plan and Smart RISE Plan.
• Rider attachment at 39%; 57% APE growth in ULIP.
• Digitization: Gift City onboarding and 24x7 digital claims portal.

Governance & ESG

• Board diversity: MFSL Independent Directors >50%; Axis Max Life ~30%.
• BitSight score 800; ISO 27001 and 22301 certified.
• NPS 63; governance and risk frameworks in place.
• ESG targets: 95% digital penetration by FY27; net-zero by 2050.

Consolidated results

• Total consolidated revenue from operations: Rs 14,969.51 cr for the quarter ended 30 Jun 2026.
• Total income: Rs 14,976.61 cr; expenses: Rs 14,838.69 cr.
• Profit before tax: Rs 137.92 cr; tax expense: Rs 19.63 cr.
• Profit after tax from continuing operations: Rs 118.29 cr.
• Profit after tax from discontinued operations: Rs -31.52 cr.
• Total comprehensive income: Rs 153.38 cr.
• Consolidated EPS: Rs 2.78.

Standalone results

• Standalone total income: Rs 5.64 cr for Q1 FY27.
• Standalone total revenue from operations: Rs 3.05 cr.
• Standalone PAT: Rs 0.73 cr.
• Standalone EPS: Basic and diluted Rs 0.02.

Corporate developments

• Axis Bank stake in AMLI increased to 19.99%; MFSL holds 80.01% in AMLI.
• MFSL approved in-principle amalgamation with AMLI; approvals and regulatory steps in progress.
• IRDAI granted one-year forbearance for Ind AS 104; consolidation under Ind AS 104 for AMLI.
• NCD redemption: Rs 49.6 cr subordinated debt redeemed on 02 Aug 2026.
• SEBI Show Cause Notice related to AMLI; MFSL maintains no impact on Q1 results.
• Future arrangements with Axis Entities include potential swap and related options; AMLI shareholding adjustments.