The insurance company GoDigit General reported a decrease in net profit of 37.54 percent year-over-year (Y-o-Y) in the fourth month of fiscal year 27 (Q1 FY27), reaching 86.4 crore rupees. This decline was due to increased expenses and moderate growth in net premium. Furthermore, the net profit was lower than the 149.42 crore rupees recorded in the previous quarter.
The volume of written gross premium decreased by 8 percent, amounting to 2,731 crore rupees. Net premium income fell by 7.4 percent year-over-year, reaching 2,094.19 crore rupees. However, the company's investment income grew by 12.02 percent Y-o-Y, increasing to 351.8 crore rupees.
The underwriting loss expanded to 282.01 crore rupees in the reporting quarter compared to 193.6 crore rupees a year earlier. Expenses rose by 21.2 percent year-over-year, reaching 6,579.9 crore rupees, while commissions increased by 32.9 percent Y-o-Y, totaling 1,250 crore rupees.
The incurred claims ratio (ICR) rose to 73.3 percent from 70.3 percent recorded in Q1 FY26. As of June 30, 2026, the insurance company's solvency ratio stood at 243 percent, higher than the 227 percent recorded on June 30, 2025. Additionally, the expense to manage ratio (EOM) increased to 39 percent from the previous 35 percent.
Tyre manufacturer Ceat, which is owned by RPG Group, reported a significant decline in its net profit for the first quarter of the financial year 2026-27 (Q1 FY27). The net profit plummeted by 96.4 percent year-on-year (YoY), reaching ₹4 crore.
The main reason for such a sharp decrease was an impact of nearly ₹50 crore caused by the depreciation of the Sri Lankan rupee against the US dollar in the debt obligations of the foreign subsidiary. Additionally, the company incurred losses from recently acquired enterprises related to investments in new warehouses, infrastructure, and lower initial operating figures.
Despite the drop in net profit, revenue from operations increased by 22.4 percentage points year-on-year, reaching ₹4,318 crore. Arnab Banerjee, Managing Director (MD) and Chief Executive Officer (CEO) of Ceat, noted that the first quarter was challenging for the industry. The company responded to the situation with a moderate price increase to partially offset the negative impact while maintaining focus on market share and demand. He added that despite the pressure, CEAT demonstrated confident double-digit revenue growth, supported by high capacity utilization and stable demand across all segments. Banerjee emphasized that entering the second quarter, the company will maintain a disciplined approach to pricing, focusing on profitable growth.
On a sequential basis, net profit declined by 98.4 percentage points, while operating revenue grew by 2.3 percentage points. Kumar Subbia, CFO of Ceat, stated that the standalone business suffered due to the increased cost of raw materials, which the company could only partially pass on to buyers. He specified that because not all the increase in raw material costs was passed on to consumers, the gross margin decreased by approximately 5.8 percentage points. Subbia forecasts that raw material costs may rise another 6-7 percent during the second quarter, although prices are likely to stabilize from the third quarter with an improvement in geopolitical and commodity conditions.
The company stated that demand for tire replacement remains resilient despite price increases and does not expect an immediate drop in demand. Nevertheless, it acknowledged the possibility of weakening demand in the medium term, especially if competitors adopt different pricing strategies. The board of directors approved an investment of ₹1,205 crore to expand two-wheeler production capacity in line with future development plans. The results were announced after the market close, after which Ceat shares rose by 0.9 percent, closing at ₹3,829.30 on the BSE.
