Should you buy, sell or hold Niva Bupa shares? See how brokerages rate Q2 show

Niva Bupa share price: Shares of Niva Bupa Health Insurance Company Ltd surged over 4 per cent on Tuesday's trading session after the company reported its financial results for the second quarter this year (Q2FY26). As of 12:30 pm, the stock of the health insurance company was trading at Rs 77, up by 4.03 per cent from the previous close.

Niva Bupa Q2FY26 result highlights

The company reported a net loss of Rs 35.27 crore as compared to Rs 13.02 crore net profit the same quarter last year.

The health insurance company's gross premium written rose to 3.69 per cent year-on-year (YoY), at Rs 1,843.07 crore. While its net premium written grew 4.07 per cent YoY to Rs 1,450.06 crore.

Commenting on the performance, Krishnan Ramachandran, MD & CEO of Niva Bupa Health Insurance, said, "Our Q2 performance reflects disciplined execution and strong operating leverage in our business. We are very encouraged by the sustained retail health growth and continued improvement in real-time quality of business metrics. The sharp improvement in Claims Settlement Ratio to 95.2 per cent demonstrates the impact of our data science-led underwriting and integrated risk controls".

"With the GST exemption now in effect, we are already seeing positive consumer sentiment and incremental demand in the category. We remain focused on expanding health insurance access in India while delivering sustainable and profitable growth," he added.

Brokerages' views on Niva Bupa

Jefferies on Niva Bupa

Jefferies has maintained a 'hold' rating on Niva Bupa with the target price revised downward to Rs 81 from Rs 84, after the company reported its financial results for the second quarter.

The brokerage noted that the company’s quarterly results reflected an operating miss, driven by higher costs and weaker underwriting performance. However, Jefferies highlighted that October trends have been positive.

The brokerage also highlighted that on a like-for-like basis, Niva Bupa’s combined ratio worsened by 250 basis points (bps), in contrast to Star Health’s 120 bps improvement.

Morgan Stanley on Niva Bupa

Morgan Stanley has maintained an 'equalweight' rating on Niva Bupa, with a target price of Rs 81. According to the brokerage, the company reported a narrower-than-estimated loss in Q2, supported by lower claims and higher investment income.

The stock has underperformed by about 8 per cent recently; however, Morgan Stanley remains optimistic and expects a near-term rebound. The brokerage sees an 80 per cent probability of the stock outperforming the broader index over the next 15 days.