Altman Z″
Needs withheld for this sector: Built on manufacturers' working capital and asset turnover; a lender always looks distressed on it..
This is a lending business. Cash-flow reads that suit a manufacturer do not apply: disbursing loans is an operating outflow, so negative operating cash is normal and not a warning sign. Leverage is the raw material of the model, not a red flag on its own. Reads that would mislead here have been withheld rather than shown with a caveat.
A plain-language read of the business, how it actually earns, where the edge is, and the economics of every reported segment — taken from the annual report and investor presentation, not a one-line industry label.
Trading at 8.4x earnings against its own median of 11.8x: 1.0 standard deviations below its usual range. This compares the company with its own history, not with other companies.
How to read this: Price shows the closing price with its 50-day (amber) and 200-day (grey) averages; bars at the bottom are daily volume, green on up days and red on down days; dashed lines mark the 52-week high and low. vs Nifty 50 starts both at 100 so you can see which did better over the period. P/E shows what the market paid for each rupee of profit, inside the band it usually trades in. Drawdown shows how far below its best price the share has been. Hover anywhere for the numbers on that day.
The three to six things that actually matter about this company, each with the exact filing and note it came from — never a fact without the context that makes it meaningful.
What the numbers mean when read together — computed from the filings, not a score.
Both revenue and profit grew over the last year (10.1% and 23.3%) — growth is translating to the bottom line.
Why this reading: A positive signal in the numbers, shown for balance alongside the concerns.
Trailing revenue ₹994,088 cr, trailing profit ₹60,055 cr. Profit growing at least as fast as revenue indicates operating leverage or pricing power.
Every score below is calculated here from the reported numbers — none of it is asserted. Open the notebook at the foot of the section to see each formula with this company's figures in it.
Needs withheld for this sector: Built on manufacturers' working capital and asset turnover; a lender always looks distressed on it..
Needs withheld for this sector: Five of its nine tests (cash flow, accruals, current ratio, leverage, asset turnover) mislead on a lending balance sheet..
Needs withheld for this sector: Its receivable, margin and accrual terms do not describe a lender's accounts..
Accruals are 1.4% of assets.
DuPont decomposition — Devised inside the DuPont Corporation in the 1920s and still the standard way to read a return on equity.
Splits return on equity into its three sources, so the same headline number can be traced to very different businesses.
How to read itA 20% ROE built on margin and turnover is a different proposition from a 20% ROE built on 3× leverage. The first survives a downturn; the second amplifies it.
Where it failsA single year. Negative equity makes it meaningless. Leverage is structural for lenders, so the third term carries no signal there.
cumulative operating cash flow ÷ cumulative net profit
₹189,595 cr ÷ ₹195,122 cr, over 8 years
0.97×
Below 1.0 and persistent means profit is being recognised before the cash arrives.(net profit − operating cash flow) ÷ average total assets
(₹57,453 − ₹-26,211) cr ÷ average assets
1.4%
The share of profit that is accounting entries rather than cash. Above ~10% is where accruals start to dominate.net margin × asset turnover × leverage
5.9% × 0.16 × 33.68
32.5%
Splits ROE into whether returns come from operations or from borrowing.borrowings ÷ net worth
₹0 cr ÷ ₹176,605 cr
0.00×
Read against the sector — infrastructure carries more than software.Needs more balance-sheet detail (only 3 of 6 flags testable).
NOPAT over equity plus debt less cash, at a notional 25% tax. Incremental ROIC is the return on money put in since then — the number that decides whether growth creates value or consumes it.
Return on invested capital, and incremental ROIC — Standard in corporate finance; the incremental form was popularised by Michael Mauboussin as the test of whether growth creates value.
ROIC measures what the business earns on all the capital it employs — equity plus debt, less cash. Incremental ROIC asks a sharper question: what has it earned on the money put in since a chosen year?
How to read itROIC comfortably above the cost of capital — call it 11–13% in India — means growth compounds. Below it, growth consumes. Incremental below headline means recent investment is earning less than the legacy business.
Where it failsDistorted in the year of a large acquisition. Understated for companies mid-build, where capital is deployed but capacity has not yet been commissioned — an incubator will look poor until it does not.
Models that need these lines are withheld rather than estimated: net worth, current assets, current liabilities, trade receivables, inventory, net block. Nothing on this page is back-solved from a figure the company did not publish.
Each framework below is a set of stated, mechanical criteria from published work, run against this company's own filed numbers. Passing or failing a screen is not a verdict — different frameworks disagree by design, and that disagreement is itself informative.
Benjamin Graham's stated criteria for a defensive stock, applied to the filed numbers. A company failing several is not disqualified — Graham designed these to be deliberately strict.
Two ratios only: what the business earns on its capital, and what you pay for those earnings. Designed to be ranked across a universe rather than read in isolation.
The fundamental half of William O'Neil's framework. The market and leadership components are judgement calls and are not scored here.
The characteristics long-term holders commonly look for: cash-backed earnings, high returns on capital, and debt that never forces a decision.
Median of the companies we hold in the same sector (Financial Services). Every figure on both sides is the live feed's trailing twelve months, so the two are measured the same way whatever depth of extraction this company has had. A number only means something next to something else — expensive against the market and cheap against peers are different facts.
Bars are revenue; the line is net margin. Revenue rising while the line falls is the shape worth noticing.
Operating cash first, then what the business spent and raised.
One year is a snapshot. These are the two lines that matter across a cycle.
Rising debtor or inventory days against flat sales is the earliest visible sign of stress.
Set your own assumptions and watch the numbers move. A scenario calculator — the outputs are the arithmetic of your inputs.
One canonical set of figures — the same numbers used everywhere else on this page and on the screener.
How the register has moved over recent quarters — the direction matters more than the level.
Promoter trimmed from 96.50% to 90.00% across these quarters.
FII rose from 0.31% to 1.55% across these quarters.
MF rose from 1.13% to 5.50% across these quarters.
Other rose from 2.06% to 2.95% across these quarters.
| Metric | Q2 FY27 | Q1 FY27 | Q2 FY26 |
|---|---|---|---|
| APE (₹ cr) | 30,696 | — | 29,034 |
| VNB (₹ cr) | 6,846 | — | 5,111 |
| VNB margin | 22.3% | — | 17.6% |
| 13th-month persistency | 74.69% | 70.38% | 75.29% |
| 61st-month persistency | 61.03% | 61.27% | 63.81% |
| Solvency ratio (×) | 2.35 | 2.42 | 2.13 |
| Protection share of APE | 0.91% | — | — |
| Assets Under Management (₹ crore) | 5,960,941 | — | 5,722,896 |
From the quarterly results and the earnings call, read by FinMinutes. Latest quarter, read in full.
Read using the Insurance framework (named in the filing read). Primary valuation lens: P/EV and VNB multiple (life); P/B against combined ratio (general).
Read more closely in this sector: Change in actuarial assumptions · Surrender and lapse trend · Reinsurance share.
The shape of the business over time (annual) — read the direction, not the single print.
| Line | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Revenue from operations | 690,914 | 723,606 | 784,628 | 845,966 | 889,970 | 977,772 |
| Other income | 12,820 | 9,248 | 7,800 | 14,829 | 3,495 | 5,421 |
| Depreciation | 417 | 436 | 466 | 466 | 506 | 707 |
| Finance cost | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit before tax | 12,151 | 12,138 | 41,463 | 47,014 | 56,267 | 53,475 |
| Net profit (owners) | 2,974 | 4,125 | 35,997 | 40,916 | 48,320 | 57,453 |
| EPS (₹) | — | 3.26 | 28.46 | 32.34 | 38.20 | 45.42 |
Exceptional items, total income and EBITDA are read from the filed statements.
| Metric | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 203,033 | 214,054 | 238,717 | 211,952 | 231,132 | 203,751 | 243,134 | 224,671 | 241,524 | 235,954 | 276,744 | 239,866 |
| Other Income | 288 | 206 | 14,249 | 1,001 | 794 | 818 | 954 | 780 | 1,044 | 822 | 3,166 | 1,301 |
| Expenses | 194,558 | 204,815 | 237,152 | 202,180 | 224,544 | 191,818 | 221,621 | 214,198 | 232,032 | 223,588 | 265,521 | 225,854 |
| Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Finance cost | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit before tax | 8,763 | 9,445 | 15,813 | 10,774 | 7,382 | 12,752 | 22,468 | 11,253 | 10,537 | 13,188 | 14,388 | 15,312 |
| Net Profit | 8,032 | 9,434 | 13,842 | 10,527 | 7,723 | 11,009 | 19,039 | 10,955 | 10,096 | 12,908 | 23,467 | 13,584 |
| EPS | 6.35 | 7.49 | 10.94 | 8.34 | 6.11 | 8.70 | 15.05 | 8.66 | 7.98 | 10.22 | 18.55 | 10.74 |
| Item | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Equity Capital | 100 | 6,325 | 6,325 | 6,325 | 6,325 | 6,325 |
| Reserves | 6,784 | 5,012 | 39,908 | 76,422 | 120,901 | 170,280 |
| Borrowings | 4 | 1 | 0 | 0 | 0 | 0 |
| Net block | 17,723 | 17,770 | 20,473 | 20,667 | 21,330 | 28,335 |
| CWIP | 148 | 199 | 331 | 403 | 326 | 419 |
| Investments | 3,517,445 | 3,926,211 | 4,243,008 | 4,976,133 | 5,298,429 | 5,556,359 |
| Total Assets | 3,829,524 | 4,254,058 | 4,578,491 | 5,316,047 | 5,660,568 | 5,948,556 |
| Line | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Cash from operations | 80,602 | -3,783 | 54,519 | 26,548 | -9,721 | -26,211 |
| Cash from investing | 148,447 | 12,531 | -52,848 | -25,695 | 41,408 | 36,693 |
| Cash from financing | -256,125 | 0 | -949 | -4,427 | -3,794 | -7,626 |
| Free cash flow | 86,765 | -3,879 | 53,976 | 25,835 | -10,435 | -27,181 |
| Net change in cash | -27,077 | 8,748 | 722 | -3,574 | 27,893 | 2,856 |
Cash from operations is the number profit has to answer to. Free cash flow is what remains after the business pays for its own growth.
The part no one reads: the auditor's opinion, the contingent liabilities buried in the notes, the covenants, and the claims in the deck placed beside the figures that test them.
Where analysts pressed management on the earnings call, and exactly how management answered — the questions that were hardest to answer are usually the ones that matter.
The same read, applied to the companies this one competes with.
Life Insurance Corporation of India reported total income of ₹2.62 lakh cr for July to September 2026, +9.6% on the year and +10.6% on the quarter. That is in line with how this quarter has grown in recent years (+8.7% on average). Over the last four quarters income comes to ₹10.12 lakh cr, +11.1% on the four before.
Net profit was ₹12,115 cr, +20.0% on the year and −10.8% on the quarter, with earnings per share of ₹9.58. The tax rate was 0% against an average of 11% over the previous 7 quarters, which lifted profit this quarter. Profit over the last four quarters totals ₹62,074 cr, +21.5% on the four before.
Insurers are read on premium growth and, for life insurers, the value of new business; accounting profit says little about one quarter.
The auditor drew attention to a matter in the limited review report. Read it before the numbers.
Source: Auditor (p. consolidated limited review report p.1-3)
Could not run on this quarter: Exceptional items that recur, IPO money used as stated, Related-party transactions, Promoter pledges and allotments, Earlier promises against delivery, Asset quality (lenders), Net interest margin (lenders), Net interest income against profit (lenders). The filing did not carry these lines.
Net profit a year ago, each driver's change, and net profit now. Blue added profit, red took it away.
| Balance sheet | Sep '26 | Last year end | Change |
|---|---|---|---|
| Cash | ₹64,901 cr | ₹72,013 cr | ▼ 9.9% |
| Bank balances | ₹64,901 cr | ₹72,013 cr | ▼ 9.9% |
| Equity | ₹1.90 lakh cr | ₹1.77 lakh cr | ▲ 7.4% |
| Total assets | ₹61.40 lakh cr | ₹59.10 lakh cr | ▲ 3.9% |
| Cash flow, year to date | This year | Last year |
|---|---|---|
| Operating cash flow | −₹16,746 cr | ₹14,746 cr |
| Capital expenditure | −₹69.2 cr | −₹407 cr |
| Investing cash flow | ₹21,352 cr | −₹21,581 cr |
| Financing cash flow | −₹12,649 cr | −₹7,590 cr |
| Dividends paid | −₹12,649 cr | −₹7,590 cr |
Emphasis of matter 1: “”Note No. 7, wherein it is mentioned that pursuant to the Regulatory approval received by the Corporation , an amount of Rs.9,280.37 crore pertaining to additional contribution due to increase in family pension is being amortised over 20 quarters commencing… Read in full
Note No. 7, wherein it is mentioned that pursuant to the Regulatory approval received by the Corporation , an amount of Rs.9,280.37 crore pertaining to additional contribution due to increase in family pension is being amortised over 20 quarters commencing from Q3 of the FY 2023-24 amounting to Rs.464.02 crore per quarter. Accordingly, an amount of Rs.464.02 crore and Rs. 928.04 crore has been charged to Consolidated Revenue Account for the quarter and half year ended September 30, 2026, respectively. The balance amount of Rs.3,712.13 crore shall be amortised over the subsequent quarters upto Q2 of the FY 2028-29.
Emphasis of matter 2: “”Note No.8, wherein it is mentioned that pursuant to Regulatory approval received by the Corporation , an amount of Rs.7,230.09 crores in Par segment pertaining to excess Expenses of Management for the FY 2022-23 shall be replenished from Shareholders' account… Read in full
Note No.8, wherein it is mentioned that pursuant to Regulatory approval received by the Corporation , an amount of Rs.7,230.09 crores in Par segment pertaining to excess Expenses of Management for the FY 2022-23 shall be replenished from Shareholders' account in equal annual instalments not exceeding three, commencing from Q1 of the FY 2024-2025. Accordingly, an amount of Rs. 602.51 crore and Rs. 1,205.02 crore has been replenished from the Shareholders' account for the quarter and half year ended September 30, 2026, respectively. The balance amount of Rs.1,205.02 crore shall be replenished from Shareholders' account over the subsequent quarters upto Q4 of the FY 2026-27.
Emphasis of matter 3: “”Note No. 9, wherein it is mentioned that pursuant to Regulatory approval received by the Corporation , an amount of Rs. 5,477.10 crore towards additional pension liability pertaining to Par segment is being charged to the Shareholders account over a… Read in full
Note No. 9, wherein it is mentioned that pursuant to Regulatory approval received by the Corporation , an amount of Rs. 5,477.10 crore towards additional pension liability pertaining to Par segment is being charged to the Shareholders account over a period not exceeding three years commencing from the FY 2024-2025. Accordingly, an amount of Rs 456.42 crore and Rs.912.84 crore has been charged to Shareholders' account for the quarter and half year ended September 30, 2026 respectively. The balance amount of Rs.912.85 crore shall be charged to Shareholders' account over the subsequent quarters upto Q4 of the FY 2026-27.
Other matter 1: “”The actuarial valuation of liabilities for life policies in force is the responsibility of the Corporation's Appointed Actuary (the "Appointed Actuary") . The actuarial valuation of these liabilities for life policies in force and for policies in respect of which… Read in full
The actuarial valuation of liabilities for life policies in force is the responsibility of the Corporation's Appointed Actuary (the "Appointed Actuary") . The actuarial valuation of these liabilities for life policies in force and for policies in respect of which premium has been discontinued but liability exists as at September 30, 2026 has been duly certified by the Appointed Actuary and in his opinion, the assumptions for such valuation are in accordance with the guidelines and norms issued by the IRDAI and the Institute of Actuaries of India in concurrence with the Authority. We have relied upon the Appointed Actuary's certificate in this regard during our review of the valuation of liabilities for life policies in force and for policies in respect of which premium has been discontinued but liability exists, as contained in the Statement.
Other matter 2: “”The Statement includes results of 7 subsidiaries certified by their respective management, which have not been subject to review, whose interim financial results reflects total assets of Rs. 23,473.76 crores, total revenue of Rs. 801 .06 crore and Rs. 1,577.18… Read in full
The Statement includes results of 7 subsidiaries certified by their respective management, which have not been subject to review, whose interim financial results reflects total assets of Rs. 23,473.76 crores, total revenue of Rs. 801 .06 crore and Rs. 1,577.18 crores and profit/(loss) after tax of Rs. 41 .05 crore and Rs. 135.40 crores for the quarter and half year ended September 30, 2026, respectively and net cash inflows/outflows/outflows) of Rs.424.88 crore for the half year ended then. According to the information and explanations given to us by the Management, these financial results are not material to the Group.
Other matter 3: “”The Statement includes results of 3 associates, which have not been reviewed by us, whose interim financial results reflect share in profit of Rs. 1,649.13 crore and Rs. 3,259.84 crore for the quarter and half year ended September 30, 2026… Read in full
The Statement includes results of 3 associates, which have not been reviewed by us, whose interim financial results reflect share in profit of Rs. 1,649.13 crore and Rs. 3,259.84 crore for the quarter and half year ended September 30, 2026 respectively. These financial results have been reviewed by other auditors whose reports have been furnished to us by the Management and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of these associates is based solely on the reports of the other auditors and the procedures performed by us as stated in paragraph 3 above.
Other matter 4: “”The Statement includes results of 3 associates, certified by their respective management, which have not been subject to review, whose interim financial results reflect share of profit of Rs. 7.25 crores and Rs. 9.13 crores for the quarter and half… Read in full
The Statement includes results of 3 associates, certified by their respective management, which have not been subject to review, whose interim financial results reflect share of profit of Rs. 7.25 crores and Rs. 9.13 crores for the quarter and half year September 30, 2026, respectively. According to the information and explanations given to us by the Management, these financial results are not material to the Group.
Filing p. consolidated limited review report p.1-3
Appointed Smt. Naga Nalini Kalluri as Chief Compliance Officer & Key Managerial Personnel w.e.f. November 06, 2026, in place of Shri Jayasimhan Madabhushi Matam Tirumala. (p. outcome letter p.2, Annexure-I)
Tax: Consolidated tax expense of ₹59.78 crore on Profit before tax of ₹12,174.56 crore for Q2 FY27, as insurance taxation applies on actuarial surplus/transfers rather than corporate accounting PBT.
| Metric | Q2 FY27 | Q1 FY27 | Q2 FY26 |
|---|---|---|---|
| APE (₹ cr) | 30,696 | — | 29,034 |
| VNB (₹ cr) | 6,846 | — | 5,111 |
| VNB margin | 22.3% | — | 17.6% |
| 13th-month persistency | 74.69% | 70.38% | 75.29% |
| 61st-month persistency | 61.03% | 61.27% | 63.81% |
| Solvency ratio (×) | 2.35 | 2.42 | 2.13 |
| Protection share of APE | 0.91% | — | — |
| Assets Under Management (₹ crore) | 5,960,941 | — | 5,722,896 |
Worked out from filed numbers. Protection Share in Individual APE: Individual Protection APE (₹157 crore) / Total Individual APE (₹17,224 crore) * 100 = 0.91%
Actuarial valuation of policy liabilities certified by Appointed Actuary per IRDAI norms; assumption changes contributed +2.8% (+280 bps) positively to VNB margin expansion in H1 FY27.
Positive impact from actuarial assumption updates supported overall VNB margin expansion to 22.3%.
13th month persistency ratio on premium basis stood at 74.69% for H1 FY27 (vs 75.29% in H1 FY26); 61st month persistency ratio stood at 61.03% (vs 63.81% in H1 FY26). Conservation ratio remained strong at 90.20%.
Slight YoY moderation in premium persistency ratios (-60 bps 13M, -278 bps 61M), offset by improvement in policy count persistency (13M up to 67.58%).
Reinsurance ceded is maintained strictly per IRDAI regulatory limits, with high premium retention across individual and group lines.
Substantial retention ratio reflects deep capital strength and underwriting capacity.
Read using the Insurance framework (named in the filing read). Primary valuation lens: P/EV and VNB multiple (life); P/B against combined ratio (general).
Read more closely in this sector: Change in actuarial assumptions · Surrender and lapse trend · Reinsurance share.
| Metric | Guidance | For | Against earlier guidance |
|---|---|---|---|
| Non-Par Share Target in Individual APE | 33.33 | FY2026-27 | unchanged or first given |
Held for next quarter's said-then-did check.
| Segment | Revenue | YoY | Result | YoY |
|---|---|---|---|---|
| Life Participating | ₹1.43 lakh cr | ▲ 2.9% | ₹1,421 cr | ▲ 29.9% |
| Pension Participating | ₹855 cr | ▲ 1.4% | ₹107 cr | ▲ 82.9% |
| Annuity Participating | ₹93.7 cr | ▲ 1.5% | −₹13.3 cr | ▼ 212.5% |
| Life Non Participating | ₹56,141 cr | ▲ 22.3% | ₹9,768 cr | ▲ 13.1% |
| Pension Non Participating | ₹50,161 cr | ▲ 22.0% | ₹527 cr | ▼ 29.4% |
| Annuity Non Participating | ₹7,860 cr | ▲ 14.2% | ₹199 cr | — |
| Variable Non Participating | ₹3.3 cr | ▲ 41.5% | −₹3.1 cr | ▼ 563.6% |
| Health Non Participating | ₹53.6 cr | ▼ 10.8% | ₹17.1 cr | ▼ 68.1% |
| Linked Life Non Participating | ₹5,002 cr | ▼ 1.7% | −₹21.6 cr | — |
| Linked Pension Non Participating | ₹185 cr | ▼ 61.7% | ₹13.2 cr | ▲ 107.8% |
| Linked Health Non Participating | −₹15.0 cr | ▼ 141.6% | ₹8.2 cr | ▼ 73.5% |
| Capital Redemption and Annuity Certain (CRAC) | ₹2.8 cr | ▼ 18.2% | ₹4.7 cr | 0.0% |
| Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total income | ₹2.14 lakh cr | ₹2.39 lakh cr | ₹2.12 lakh cr | ₹2.31 lakh cr | ₹2.04 lakh cr | ₹2.43 lakh cr | ₹2.25 lakh cr | ₹2.39 lakh cr | ₹2.36 lakh cr | ₹2.77 lakh cr | ₹2.37 lakh cr | ₹2.62 lakh cr |
| YoY | — | — | +11% | +14% | −5% | +2% | +6% | +4% | +16% | +14% | +6% | +10% |
| Exceptional items | — | — | — | — | — | — | — | — | — | — | — | — |
| Tax rate | 15% | 12% | 15% | 16% | 14% | 15% | 15% | 1% | 15% | — | 1% | 0% |
| Net profit | ₹9,434 cr | ₹13,842 cr | ₹10,527 cr | ₹7,723 cr | ₹11,009 cr | ₹19,039 cr | ₹10,955 cr | ₹10,098 cr | ₹12,908 cr | ₹23,467 cr | ₹13,584 cr | ₹12,115 cr |
| YoY | — | — | +9% | −4% | +17% | +38% | +4% | +31% | +17% | +23% | +24% | +20% |
| EPS | ₹7.49 | ₹10.94 | ₹8.34 | ₹6.11 | ₹8.70 | ₹15.05 | ₹8.66 | ₹7.95 | ₹10.22 | ₹18.55 | ₹10.67 | ₹9.58 |
| Flags | · | · | · | · | · | · | · | 1 | · | 1 | · | 1 |
Each quarter is read with the same rules. Balance-sheet and cash checks run on half-year and annual quarters; filing-read checks run where a read exists.