Emkay Global Financial Services Limited has successfully completed its postal ballot process for the appointment of Mr. Ajay Mahajan as an Independent Director, with shareholders demonstrating overwhelming support for the proposal. The remote e-voting process concluded on January 9, 2026, at 5:00 p.m. (IST), marking the completion of a comprehensive shareholder consultation process.

Postal Ballot Process Details

The postal ballot notice was issued on November 28, 2025, seeking shareholder approval for the appointment of Mr. Ajay Mahajan (DIN: 05108777) as an Independent Director through a special resolution. The voting process was conducted exclusively through remote e-voting, facilitated by Central Depository Services (India) Limited (CDSL).

Voting Results and Shareholder Response

The postal ballot received exceptional shareholder support, with 99.99% of votes cast in favor of the appointment. The voting results demonstrate strong confidence in the proposed appointment across all shareholder categories.

Scrutinizer Appointment and Compliance

Ms. Sarvari Shah (Membership No. FCS 9697) of M/s Parikh & Associates, Company Secretaries, was appointed as the Scrutinizer to conduct the postal ballot process. The appointment was made in accordance with Section 110 of the Companies Act, 2013, and the Companies (Management and Administration) Rules, 2014.

The scrutinizer submitted her report on January 9, 2026, confirming that the special resolution was passed with the requisite majority. The voting process was conducted in compliance with Regulation 30 and 44 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Resolution Outcome

The special resolution for the appointment of Mr. Ajay Mahajan as an Independent Director has been successfully passed. A total of 94 members voted in favor of the resolution, representing 18,798,315 shares (99.99% of valid votes cast), while only 4 members voted against, representing 116 shares (0.0006% of valid votes cast). No invalid votes were recorded during the process.

The company has fulfilled its disclosure obligations under the applicable regulations, with the voting results and scrutinizer's report being made available on the company's website at https://www.emkayglobal.com/ . This appointment strengthens the company's board composition with independent oversight and governance expertise.

Emkay Global Financial Services expects life, general and health insurers to report healthy premium growth in the December quarter of FY26, supported by favourable changes in the goods and services tax (GST) regime. However, the brokerage anticipates profitability to remain under pressure due to input tax credit (ITC) losses, higher commissions and regulatory-related costs.

In its Q3FY26 insurance sector note, Emkay Global Financial Services said operating performance across segments should remain satisfactory as improved affordability lifts demand. Premium growth momentum is expected to strengthen, even as margin expansion remains limited.

Life Insurance Segment Performance

Life insurers are projected to post healthy growth in annualised premium equivalent (APE) during the quarter, helped by GST-led affordability gains and the normalisation of base effects following revised surrender value regulations. Protection products are expected to benefit the most, with rising preference for term insurance supporting volumes.

Despite the improvement in premiums, value of new business (VNB) margins are expected to remain under pressure. Emkay Global Financial Services attributed this to GST ITC losses, partly offset by a shift towards higher-margin non-par and protection products, ongoing distributor negotiations and operational efficiency gains. Higher gratuity provisions following the implementation of labour codes are also expected to weigh on reported profitability.

General Insurance Growth Drivers

General insurers are expected to deliver healthy gross written premium (GWP) growth, led by motor and retail health segments. Lower GST rates are likely to support new vehicle sales, boosting growth in motor own-damage policies. Retail health insurance is also expected to see strong demand due to improved affordability after GST exemptions.

In contrast, growth in group health insurance may remain modest amid intense competition. Combined ratios are likely to stay elevated, driven by higher commission payouts, although some insurers may see marginal improvement in claims ratios. Emkay Global Financial Services expects GST ITC losses to have a limited impact on multi-line general insurers, with investment income helping support profit after tax during the quarter.

Health Insurance Segment Outlook

The health insurance segment is projected to report robust growth in retail premiums, supported by GST exemptions and the normalisation of base effects related to the 1/n regulation. Improved affordability is expected to drive demand, particularly for individual policies.

Claims ratios are likely to remain elevated due to higher claim frequency and severity, although the brokerage expects a modest improvement in claims experience during the quarter. Emkay Global Financial Services said it continues to monitor medical cost inflation, which remains a key risk for the segment.

Market Outlook and Investment Perspective

Looking ahead, Emkay Global Financial Services expects life insurers to sustain healthy APE growth as GST tailwinds continue and base effects stabilise. General insurers are likely to maintain steady growth in motor and health lines, while health insurers should see sustained premium expansion on the back of affordability gains and easing regulatory pressures.

From an equity market perspective, the report noted that while regulatory overhangs—particularly around commissions—persist, recovery in growth momentum and gradual improvement in profitability will be critical for insurance stock performance.