💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue excluding investment income reached INR 15,090 Cr in H1 FY26, representing a growth of 18% YoY. Individual adjusted first-year premium (FYP) grew by 18% to INR 3,891 Cr. Proprietary channels APE grew by 17% YoY, while the Bancassurance channel grew by 12% in FY25. Online business delivered a 68% CAGR over 3 years.

Geographic Revenue Split

Not disclosed in available documents, though the company noted a strategic move to deepen presence in smaller cities beyond Metro and Tier-1 areas through the Axis Max Life brand refresh.

Profitability Margins

Consolidated Profit After Tax (PAT) for H1 FY26 was INR 92 Cr, lower than the previous year due to Ind AS fair value accounting and GST expenses. Axis Max Life achieved a post-tax shareholder profit of INR 406 Cr in FY25, a 13% increase YoY. New Business Margin (NBM) stood at 23.3% in H1 FY26 compared to 24% in FY25.

EBITDA Margin

Value of New Business (VNB) for H1 FY26 was INR 974 Cr, growing 27% YoY. Operating Return on Embedded Value (RoEV) was 16.3% for H1 FY26. The company targets a steady-state margin of 25%, reinvesting excess margins into distribution expansion.

Capital Expenditure

The company raised INR 800 Cr in sub-debt during H1 FY26 to strengthen its solvency ratio. Specific historical and planned physical CAPEX in INR Cr is not disclosed as the business is service-oriented.

Credit Rating & Borrowing

The company raised INR 800 Cr in sub-debt to bolster solvency. The solvency ratio improved to 208% as of September 2025 from 201% in March 2025. Specific interest rate percentages for the debt were not disclosed.

⚙️ Operational Drivers

Raw Materials

As a financial services firm, 'raw materials' are not applicable. Key cost drivers include distribution commissions and operating expenses (Opex). Total expense growth has been kept in line with sales growth to maintain operating leverage.

Import Sources

Not applicable for life insurance operations.

Key Suppliers

Not applicable. Key partners include Axis Bank for bancassurance and Mitsui Sumitomo Insurance as a joint venture partner.

Capacity Expansion

The agency force expanded from approximately 61,000 in FY22 to nearly 1.42 lakh agents by H1 FY26. The company is also adding physical offices to augment its proprietary channel distribution.

Raw Material Costs

Not applicable. Operating expenses are managed to align with sales growth; the company uses distributor renegotiations and cost optimization to offset the impact of non-available GST input tax credits.

Manufacturing Efficiency

Not applicable. Operational efficiency is measured by the 15% APE growth driven by a 10% growth in Number of Policies (NOP).

Logistics & Distribution

Distribution is driven by proprietary channels (39% 3-year CAGR) and bancassurance. Proprietary channels are a cornerstone of growth, with online business growing at a 68% CAGR.

📈 Strategic Growth

Expected Growth Rate

15-17%

Growth Strategy

Growth will be achieved through a 15-17% APE guidance, focusing on proprietary channel expansion (agent force now at 1.42 lakhs), online leadership in protection and savings, and leveraging the 'Axis Max Life' brand to deepen penetration in smaller cities. The company onboarded 44 new partners in FY25, including 3 Banca partners.

Products & Services

Life insurance policies including Retail Protection, Health insurance, Unit Linked Insurance Plans (ULIP), Savings products, and Annuities.

Brand Portfolio

Axis Max Life (formerly Max Life Insurance).

New Products/Services

Strong focus on Retail Protection & Health (35% growth in FY25) and ULIP (43% growth in FY25). New product mix contributes 60-70% to margin improvements.

Market Expansion

Expansion into smaller cities leveraging the trust of Axis Bank and Max Life's legacy. Private market share increased by 83 bps to 10.1% in H1 FY26.

Market Share & Ranking

Private market share is 10.1% as of H1 FY26, ranking as a leader in online protection and savings.

Strategic Alliances

Joint venture with Axis Bank and Mitsui Sumitomo Insurance. Strategic equity investments from Warburg Pincus, Xenok Limited, and International Finance Corporation.

🌍 External Factors

Industry Trends

The life insurance industry grew at 2% in H1 FY26, while the private sector grew at 8%. MFSL outperformed with 18% growth. The industry is shifting toward digital distribution and protection-oriented products.

Competitive Landscape

MFSL's 2-year CAGR of 24% significantly outperforms the private sector's 16% and the industry's 11%.

Competitive Moat

The 'Double Bharosa' brand identity combining Axis Bank and Max Life creates a strong trust moat. The proprietary distribution network (1.42 lakh agents) and 68% CAGR in online business provide a durable competitive advantage over peers relying solely on third-party banks.

Macro Economic Sensitivity

Embedded Value is sensitive to interest rates; a 1% reduction in risk-free rates increases EV by 3.7% (INR 990 Cr).

Consumer Behavior

Increased demand for retail protection and health products (35% growth) and online savings (50% growth in FY25).

Geopolitical Risks

Global developments are noted to influence market dynamics, though the company remains confident in meeting guidance.

⚖️ Regulatory & Governance

Industry Regulations

Impacted by Ind AS accounting standards which caused fair value changes in H1 FY26 profits. GST regulations regarding the non-availability of input tax credits are a current operational headwind.

Taxation Policy Impact

A 2% increase in the corporate tax rate would decrease EV by 2.2% (INR 590 Cr). If the corporate tax rate increased to 25%, EV would fall by 9.8% (INR 2,636 Cr).

⚠️ Risk Analysis

Key Uncertainties

Market consistent Embedded Value (MCEV) is subject to equity market volatility (10% fall = 1.2% EV drop) and interest rate fluctuations. GST expense underlying the Axis Max Life franchise remains a profit headwind.

Geographic Concentration Risk

Concentration is shifting from Metro/Tier-1 to smaller cities; specific regional % not disclosed.

Third Party Dependencies

Significant dependency on Axis Bank for bancassurance distribution, although proprietary channels now grow at 17% YoY.

Technology Obsolescence Risk

The company is mitigating tech risks through its 'Cyber DARE' framework and a focus on digital efficiencies in sourcing and pricing.

Credit & Counterparty Risk

The company manages credit risk through an independent credit review of all new investment proposals and an Early Warning Framework for stressed assets.