MAX FINANCIAL SERVICES Q2 CONCALL : H1 VNB GROWS 21%, PAT JUMPS 137%; MANAGEMENT MAINTAINS FY27 VNB MARGIN GUIDANCE OF 25–26%, EXPECTS STRONGER H2 GROWTH

MANAGEMENT GUIDANCE & OUTLOOK • MANAGEMENT MAINTAINS FY27 VNB MARGIN GUIDANCE OF 25–26%, WITH INCREASING CONFIDENCE TOWARDS THE UPPER END OF THE RANGE • MANAGEMENT EXPECTS H2 FY27 APE GROWTH TO ACCELERATE FROM H1 LEVELS, SUPPORTED BY IMPROVING DISTRIBUTION & PRODUCT MIX • MANAGEMENT EXPECTS VNB MARGINS TO IMPROVE DURING Q3–Q4, SUPPORTED BY HIGHER-MARGIN PRODUCTS & OPERATING EFFICIENCIES • MANAGEMENT EXPECTS AXIS BANK DISTRIBUTION GROWTH & COUNTER SHARE TO IMPROVE DURING H2 FY27, SUPPORTED BY THE PARIVARTAN PLUS PROGRAMME • MANAGEMENT EXPECTS UNDERLYING OPERATING EXPENSE GROWTH OF APPROXIMATELY 8–10%, WHILE PROPOSED REGULATORY CHANGES MAY REQUIRE ADDITIONAL COST EFFICIENCIES FINANCIAL PERFORMANCE & BUSINESS DEVELOPMENTS • H1 GROSS WRITTEN PREMIUM GREW 17% YOY TO ₹18,066 CR, WHILE RENEWAL PREMIUM INCREASED 18% TO ₹11,247 CR • MFSL CONSOLIDATED NET PROFIT JUMPED 137% YOY TO ₹219 CR, WHILE REVENUE EXCLUDING INVESTMENT INCOME GREW 16% TO ₹17,484 CR • H1 VALUE OF NEW BUSINESS GREW 21% YOY TO ₹1,180 CR, WITH VNB MARGIN EXPANDING 210 BPS TO 25.4% FROM 23.3% • Q2 VNB MARGIN STOOD AT 27%, WHILE TOTAL APE GREW 8% YOY IN Q2 & 11% DURING H1 • Q2 ANNUITY BUSINESS GREW 130% YOY, WHILE NEW SMART RISE PRODUCT CONTRIBUTED APPROXIMATELY 8% OF TOTAL APE • PURE RETAIL PROTECTION BUSINESS GREW 31% YOY, WHILE GROUP CREDIT LIFE BUSINESS INCREASED 41% DURING Q2 • AXIS BANK CHANNEL GREW 4% IN Q2 & 8% DURING H1, CONTRIBUTING APPROXIMATELY 42–43% OF TOTAL SALES • POLICYHOLDER OPERATING EXPENSE RATIO IMPROVED 174 BPS YOY TO 13.7% OF GWP, WHILE H1 POLICYHOLDER OPERATING EXPENSES GREW ONLY 3% • EMBEDDED VALUE GREW 17% YOY TO ₹31,437 CR, AUM INCREASED 11% TO ₹2.06 LAKH CR & SOLVENCY RATIO STOOD AT 197% • MANAGEMENT EXPECTS 13-MONTH PERSISTENCY TO IMPROVE FROM 83% DURING Q3–Q4, WHILE AXIS BANK GROWTH, PROPOSED IRDAI REGULATIONS & EXPENSE LIMITS REMAIN KEY MONITORABLES INVESTOR TAKEAWAY: POSITIVE — STRONG VNB GROWTH, MARGIN EXPANSION, ANNUITY MOMENTUM & COST CONTROL SUPPORT THE FY27 OUTLOOK. HOWEVER, H2 APE ACCELERATION, AXIS BANK RECOVERY & PERSISTENCY IMPROVEMENT REMAIN MANAGEMENT EXPECTATIONS, WHILE FINAL REGULATORY REQUIREMENTS ARE STILL PENDING.

CINDRELLA FINANCIAL SERVICES L

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