Synopsis: Go Digit General Insurance reported strong Q3 growth where AUM crossed Rs 22,500 crore with rising premiums, improved profitability, portfolio reshaping, technology-led efficiency, and a positive brokerage outlook, indicating potential upside of 31%.
The shares of this company, which designs products, distributes and provide customer experience for non-life insurance products. It offers motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance, and other insurance products.
With a market capitalisation of Rs 30,710 crore, Go Digit General Insurance Ltd’s shares closed at Rs 332.20 per share, down by 0.43 from its previous day’s close. The share trades at an overvalued P/E of 60.2x, almost twice its industry P/E of 35.1x.
How does Go Digit General Insurance Ltd make money & the revenue shift?
What they made in Q3 FY26: Go Digit General Insurance serves 8.1 crore customers across multiple products with 80,000 partners, holding a 3.4 percent motor and 6.5 percent overall market share. AUM has crossed Rs 22,500 crore, up Rs 2,800 crore (18.8 percent) versus December 2024. With a solvency ratio of 230 percent and consistently healthy Net Promoter Scores, the company demonstrates robust growth, strong customer satisfaction, and financial stability.
In Q3 FY26, Go Digit reported a Gross Direct Premium Income (GDPI) of Rs 2,557 crore, up 20.9 percent from Rs 2,115 crore in the same quarter last year. On a Gross Written Premium (the amount they got from selling insurance) basis, the company earned Rs 2,909 crore, a growth of 8.7 percent YoY, reflecting disciplined underwriting and selective non-renewal of underpriced policies
Revenue segmentation: The company’s revenue comes mostly from selling motor-related insurance. In more details the company has three segments under the motor insurance: commercial vehicle, private vehicle and two wheelers.
The company’s motor revenue mix has shifted significantly, with commercial vehicles declining from 60 to 65 percent five years ago to 19 percent currently. Private cars now contribute 47 percent, while two-wheelers account for 34 percent, becoming a key segment. This reflects management’s strategic pivot toward more resilient and diversified growth segments.
Digit is a fairly large player in the two-wheeler business. So their two-wheeler business only in Q3 grew by 47 percent, where the collected premium in this quarter was Rs. 668 crore against Rs. 456 crores of last year. And this increase of Rs. 212 crore in premium in two-wheeler collected is impacting the P&L under IGAAP by Rs. 84 crores in the quarter.
As of December 31, 2025, the company reported an advance premium of Rs 2,949 crore, with motor contributing Rs 2,605 crore and non-motor Rs 344 crore. The motor advance premium represents about 7.9 percent of the nine-month YTD motor premium, reportedly among the highest in the industry, largely driven by strong traction in the two-wheeler portfolio.
Brokerage view
Citi has maintained its Buy rating with a target price of Rs 435, implying a potential upside of 31 percent from current levels. The target reflects confidence in sustained premium growth, better loss ratios, and operating leverage driven by disciplined channel management and technology-led efficiency gains.
The company is sharpening its motor strategy by increasing the share of high-quality channel partners and segmenting them based on growth potential and business quality. Quarterly reviews are being implemented to design channel-specific strategies, aiming to improve origination quality and build a more sustainable motor portfolio.
Management is also prioritising higher renewal rates in motor while tightening underwriting discipline. In commercial lines, the company is demonstrating agility by actively managing concentration risk. At the same time, enhanced scrutiny in motor third-party claims processing is expected to reduce fraudulent claims and protect loss ratios.
Technology remains a core enabler, with multiple interventions across sourcing, underwriting, claims, and servicing to boost operational efficiency. Continued product and service innovation is supporting steady adoption trends, and initial performance metrics indicate encouraging traction, reinforcing confidence in scalable and disciplined growth.
Q3 Performance
Strong Operating Scale: Go Digit commands a 3.4 percent motor and 6.5 percent overall market share, serving 8.1 crore customers through 80,000 partners. Its Assets Under Management crossed Rs 22,509 crore for the first time, supported by consistently healthy Net Promoter Scores, reflecting robust market presence and customer trust.
Healthy Premium Growth: In Q3, Gross Direct Premium Income rose 20.9 percent YoY to Rs 2,557 crore, while Gross Written Premium increased 8.7 percent to Rs 2,909 crore. Slightly lower GWP growth stemmed from the conscious non-renewal of inadequately priced government health business (~Rs 254 crore), demonstrating disciplined underwriting practices.
Profit Expansion & Financial Health: PBT jumped 37 percent YoY to Rs 163 crore (Rs 170 crore adjusted for wage code impact), with PAT at Rs 140 crore. Accumulated losses have been eliminated, strengthening the balance sheet. Quarterly PAT grew 19.6 percent, highlighting sharp profit expansion and a clean, stable financial footing.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
