Go Digit Q3 Results: Net Profit Jumps 19.6% YoY, Should You Buy, Sell, or Hold the Stock?

Synopsis: Go Digit General Insurance Limited delivered a strong Q3 FY26 with revenue and profit growth, improved loss ratios, and higher AUM, while brokerages remain cautiously positive, citing valuation and mix-related margin pressures.

This Mid-cap Srock, engaged in providing tech-driven non-life insurance products like motor, health, and home policies via digital platforms, jumped 3.24 percent after the company reported its December quarterly results, while brokerages shared mixed views on its future outlook.

With a market capitalization of Rs. 30,224.19 crores, the share of Go Digit General Insurance Limited has reached an intraday high of Rs. 334.40 per equity share, rising nearly 3.24 percent from its previous day’s close price of Rs. 323.90. Since then, the stock has retreated and is currently trading at Rs. 327 per equity share. 

Q3 FY26 Result Walkthrough:

Coming into the quarterly results of Go Digit General Insurance Limited, the company’s consolidated revenue increased by 5.50 percent YOY, from Rs. 2,436 crore in Q3 FY25 to Rs. 2,570 crore in Q3 FY26, and grew by 3.30 percent QoQ from Rs. 2,488 crore in Q2 FY26.

Net Earned Premium of Go Digit General Insurance Limited increased to Rs. 6,113 crore in 9M FY26 from Rs. 5,799 crore in 9M FY25, reflecting a growth of percent . On a quarterly basis, NEP rose to Rs. 2,160 crore in Q3 FY26, compared to Rs. 2,084 crore in Q3 FY25, registering an increase of 3.6 percent, supported by higher premium volumes and stable revenue recognition.

In Q3 FY26, Go Digit General Insurance Limited’s consolidated net profit increased by 17.65 percent YOY, reaching Rs. 140 crore compared to Rs. 119 crore during the same period last year. As compared to Q2 FY26, the net profit has increased by 19.66 percent, from Rs. 117 crore. The basic earnings per share increased by 17.83 percent and stood at Rs. 1.52 as against Rs. 1.29 recorded in the same quarter in the previous year, FY2025.

In terms of return ratios, the company’s ROCE and ROE stand at 10.8 percent and 11.9 percent, respectively. Go Digit General Insurance Limited has an earnings per share (EPS) of Rs. 5.53.

Assets Under Management:

As of 9M FY26, Go Digit General Insurance Limited reported Assets Under Management of Rs. 22,509 crore, reflecting a 19 percent YoY increase. The growth was driven by a higher investment portfolio of Rs. 19,703 crore, supported by steady premium inflows and improved profitability. Borrowings remained minimal at Rs. 5 crore, while business surplus increased to Rs. 2,801 crore. Investment leverage improved to 5.1x, indicating efficient capital deployment and a disciplined balance sheet approach.

Brokerage Viewpoints:

Jefferies, a prominent brokerage firm, has recommended an “Equal-weight” call on Go Digit General Insurance Limited with a revised target price of Rs. 430 per share from Rs. 420 per share, indicating an upside potential of 32.75 percent from its previous day’s close price of Rs. 323.90.

Jefferies maintains a Buy rating on Go Digit General Insurance Limited as the company delivered a Q3 earnings beat, led by reinsurance gains and operating leverage. The combined ratio improved by ~30 bps YoY to 110.5 percent, supported by lower commission expenses due to a focused retention strategy. While Motor OD loss ratio weakened amid competitive pressures and adverse mix, overall profitability trends remain positive, supporting Jefferies’ constructive view on the stock.

Similarly, Morgan Stanley, a prominent brokerage firm, has recommended an “Equal-weight” call on Go Digit General Insurance Limited with a target price of Rs. 335 per share, indicating an upside potential of 3.43 percent from its previous day’s close price of Rs. 323.90.

Morgan Stanley maintains an Equal-weight rating on Go Digit General Insurance Limited as the company delivered a Q3 earnings beat on adjusted profits, supported by improved loss ratios and better cost control. However, the combined ratio increased year-on-year due to a higher mix of two-wheeler business, which typically carries higher claims. While the IFRS combined ratio showed improvement, valuation levels remain full, limiting near-term upside despite operational improvements.

Company Overview:

Go Digit General Insurance Limited, based in Bengaluru, India, operates as a tech-driven non-life insurer founded in 2016 by Kamesh Goyal and backed by Fairfax Group. It simplifies insurance through digital platforms, offering motor, health, travel, home, and customizable policies with minimal paperwork, fast claims via apps, and smartphone self-inspections. 

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