Operating profit grows, but negative other income cuts NAM India's profit
Revenue rose +20.91% year on year, but a higher tax rate and Rs 73.39 cr of negative other income pulled net profit down -5.88%.
Filed 22 Oct 2026, 14:07 IST · NAM-INDIA (NAM-INDIA)
Key takeaways
- Operating profit grew +25.13% year on year as revenue growth of +20.91% outpaced expense growth of +12.99%.
- Net profit fell -5.88% year on year after other income turned negative at Rs 73.39 cr and the tax rate rose 3.52 percentage points to 27.92%.
- Operating margin improved 2.27 percentage points year on year to 67.54%, which was 2.92 percentage points above the 64.62% median for 20 Financial Services peers.
Price around the results
Operating growth held up in Q2FY27
NAM-INDIA's consolidated revenue increased +20.91% year on year and +3.77% sequentially, while operating profit grew +25.13% year on year and +5.84% quarter on quarter. Expenses rose only +12.99% year on year and declined -0.30% sequentially, allowing operating margin to expand 2.27 percentage points year on year and 1.32 percentage points sequentially. The margin was above the 64.62% median reported by 20 Financial Services peers.
Other income reversed and weakened profit quality
Other income was negative at Rs 73.39 cr, compared with Rs 36.98 cr in Q2FY26 and Rs 170.82 cr in Q1FY27; it represented -16.31% of pre-tax profit. That reversal more than offset the operating gain, taking pre-tax profit down -1.29% year on year and -32.34% sequentially. The tax rate also increased 3.52 percentage points year on year and 3.65 percentage points quarter on quarter, so net profit fell -5.88% year on year and -35.60% sequentially.
Margin recovered after the Q1 decline
Operating margin rose from 63.98% in Q1FY26 to 65.27% in Q2FY26 and 66.66% in Q3FY26, before reaching 68.65% in Q4FY26. It then slipped to 66.22% in Q1FY27 and recovered to 67.54% in Q2FY27, so the latest quarter marks a sequential improvement rather than a continuing decline. The recovery came as revenue grew while expenses edged down sequentially.
Digital activity and expansion remained management talking points
Management said digital business generated 9 million new purchase and new SIP transactions in H1 FY27. The presentation said Medical Data Vision became Nippon Life's wholly owned subsidiary after the acquisition completed on May 14, 2026, while Resolution Life became wholly owned after an additional investment of approximately 77% completed on October 30, 2025. Management also said it is piloting Gujarati-language videos and plans to allocate up to INR 300 million towards CSR initiatives in FY27.
Recent result-day moves have been mixed
Across the stock's last eight result reactions, four were positive and four were negative, with a median absolute move of 2.02%. The last six moves ranged from -3.67% to +1.92%, indicating that both direction and size have varied rather than following a consistent pattern. The current filing is too recent for a market reaction to be assessed.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹796 cr | ₹767 cr | +3.77% | +20.91% |
| Other income | ₹-73 cr | ₹171 cr | — | — |
| Expenses | ₹258 cr | ₹259 cr | -0.30% | +12.99% |
| Operating profit | ₹537 cr | ₹508 cr | +5.84% | +25.13% |
| Operating margin (%) | 67.54% | 66.22% | — | — |
| Interest | ₹2 cr | ₹2 cr | +4.46% | -8.89% |
| Depreciation | ₹12 cr | ₹12 cr | +3.76% | +40.70% |
| Profit before tax | ₹450 cr | ₹665 cr | -32.34% | -1.29% |
| Tax | ₹126 cr | ₹161 cr | -22.14% | +12.94% |
| Net profit | ₹324 cr | ₹504 cr | -35.60% | -5.88% |
| EPS (₹) | ₹5.07 | ₹7.89 | -35.74% | -6.46% |
Operating margin of 67.54% compares with a Financial Services sector median of 64.62% across 20 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -5.47% | -5.08% |
Volume on the results session was 8.76× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Digital business generated 9 million new purchase and new SIP transactions in H1 FY27.
Guidance & outlook
- NAM India plans to allocate up to INR 300 million towards CSR initiatives in FY27.
Expansion
- Medical Data Vision became Nippon Life's wholly owned subsidiary after the acquisition was completed on May 14, 2026.
- Resolution Life was targeted to become wholly owned through an additional investment of approximately 77%, completed on October 30, 2025.
New initiatives
- The company is piloting Gujarati-language videos.
What to watch
- Whether operating margin holds above 67.54% after recovering from 66.22% in Q1FY27.
- Whether other income improves from negative Rs 73.39 cr without becoming a major share of pre-tax profit.
- Whether the tax rate moves back below 27.92% after rising 3.65 percentage points sequentially.