Max Financial Services reported strong growth in its Q4FY25 Value of New Business (VNB) margins, which rose to 24%, signaling healthy business momentum. However, total income from operations for the quarter dropped by 16.87% to ₹12,375.76 crore, largely due to a decline in the life insurance segment revenues, which make up nearly all of the company’s income.
Read More: Q4 Reports: Delhivery Makes Profit of ₹72.56 Crore After Losing ₹68.47 Crore Last Year
Despite this, the company turned profitable in Q4, reporting a profit before tax of ₹22.13 crore, compared to a loss of ₹59.05 crore last year. The life insurance segment posted a profit of ₹16.30 crore, reversing a previous loss, while the business investments segment earned ₹5.81 crore. The company also benefited from a rise in other income and a tax credit of ₹16.15 crore. Net profit attributable to owners stood at ₹31.31 crore, a significant turnaround from a loss of ₹31.31 crore in the previous year.
For the full year FY25, revenue declined slightly by 0.23% to ₹46,468.91 crore. While life insurance revenue dipped marginally, the company’s profit before tax increased by 7.61% to ₹446.74 crore. Operating profit rose 10.53% to ₹468.64 crore, supported by improved operational efficiency, with a drop in other and staff-related expenses. Although profit after tax increased to ₹403.38 crore, net profit attributable to owners slightly declined by 3.78% to ₹327.21 crore due to higher tax expenses and increased share of profit to non-controlling interests.
Also See:Â Kalpataru Projects Q4 Profit Jumps 37% as Sales Increase and Interest Costs Fall…
On the business side, Max Financial’s consolidated revenue excluding investment income rose 12% YoY to ₹32,620 crore. Individual Adjusted First Year Premium grew 20% to ₹8,329 crore, boosting private market share to 9.8%. New retail policy sales rose 11%, and renewal premiums grew 14% to ₹21,049 crore, leading to a 13% increase in gross written premium to ₹33,223 crore. Despite regulatory challenges, VNB rose 7%, helped by over 300% growth in riders and strategic product changes. The company saw strong growth across distribution channels, especially in its proprietary and bancassurance partnerships.
Axis Max Life, the key insurance arm, onboarded 44 new partners and achieved a persistency rate of 87.6% at the 13th month. CEO Prashant Tripathy noted that Axis Max Life ranked 3rd in the private life insurance sector in H2FY25, with market share gains and industry-leading growth, driven by strong execution in distribution, innovation, and partnerships.
