New India Assurance reports Q2 FY26 standalone results; Net Profit declines to ₹63.25 crore amid underwriting losses
New India Assurance reported a Q2 FY26 standalone net profit of ₹63.25 crore, down from ₹71 crore year-on-year, driven by increased underwriting losses. Auditors issued a qualified conclusion.
The negative financial performance, including increased losses and declining profit, combined with a qualified audit report and substantial contingent liabilities, is likely to have a high impact on investor confidence and the company's valuation. The issues highlighted by the auditors suggest underlying operational and compliance risks that could affect future performance.
The company reported a decline in net profit and a significant increase in underwriting and operating losses. Key financial ratios like Solvency Ratio and Combined Ratio deteriorated. The auditor's qualified conclusion and emphasis on unresolved reconciliation issues, wage revision provisions, and substantial contingent tax liabilities indicate significant financial and operational concerns.
* The Board of Directors of The New India Assurance Company Limited, at their meeting held on November 13, 2025, approved the Un-Audited Standalone Financial Results for the quarter and half year ended September 30, 2025. * For the quarter ended September 30, 2025, the company reported a Profit / (loss) after tax of ₹6,325 lakh (₹63.25 crore), a decrease from ₹7,100 lakh (₹71 crore) in the same quarter last year. * Gross Premiums Written increased to ₹10,54,117 lakh (₹10,541.17 crore) from ₹9,62,006 lakh (₹9,620.06 crore) year-on-year. * Net Premium Written for the quarter was ₹8,80,797 lakh (₹8,807.97 crore), up from ₹8,06,725 lakh (₹8,067.25 crore) in Q2 FY25. * Income from investments (Net) significantly increased to ₹2,91,408 lakh (₹2,914.08 crore) from ₹1,56,466 lakh (₹1,564.66 crore) in the prior year. * The company reported an underwriting loss of (₹3,55,436) lakh ((₹3,554.36 crore)), which widened from (₹1,94,823) lakh ((₹1,948.23 crore)) in Q2 FY25. * The operating loss for the quarter also increased to (₹64,028) lakh ((₹640.28 crore)) from (₹38,357) lakh ((₹383.57 crore)) in the corresponding period. * Key ratios include a Solvency Ratio of 1.79 (down from 1.81), an Expenses of Management Ratio of 27.89% (up from 20.08%), and a Combined Ratio of 139.77% (deteriorated from 124.05%). * Basic and diluted EPS before extraordinary items for the period was ₹0.38, down from ₹0.43 in Q2 FY25. * The Independent Auditors issued a Limited Review Report with a Qualified Conclusion due to certain balances where reconciliation, compilation, and confirmation are ongoing, and necessary adjustments are yet to be carried out (Note No.6). * The Auditors also included Emphasis of Matter notes regarding: * A provision of ₹16,588.6 lakh (cumulative up to H1 FY26) for wage revision based on management assessment, pending finalization of negotiations. * Non-provisioning for tax demands amounting to ₹57,981.1 lakh disclosed as contingent liabilities, based on favorable judgments. * Ongoing strengthening of internal controls and internal audit, particularly in data input/validation and internal audit systems. * Pending compliance with Section 128 of the Companies Act, 2013, regarding the maintenance of electronic books of account for foreign branches to be accessible in India at all times and backup physically located in India.
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