Acko, the Mumbai-based insurtech startup gearing up for an IPO, has reported a net profit of ₹43.6 crore for the fiscal year 2026, marking a major recovery from a ₹193.4 crore loss the previous year. The company’s growth in net earned premiums and cost-cutting measures helped improve its financial health ahead of its planned market debut.
- Net profit of ₹43.6 Cr in FY26 versus loss in FY25
- Net earned premium grew 26% YoY to ₹191.8 Cr
- IPO filing expected in H2 2026 with listing targeted in H1 2027
What happened
Acko, an Indian insurtech unicorn that has been expanding aggressively, turned profitable in the fiscal year ending 2026, reporting a net profit of ₹43.6 crore compared to a net loss of ₹193.4 crore in FY25. The company’s net earned premiums increased by 26% year over year, reaching ₹191.8 crore, reflecting strong growth in its core insurance business despite a drop in overall investment income.
Operating expenses tied to the insurance business declined by 12.3% to ₹62.3 crore, while the net claims incurred rose 19.2% to ₹127.1 crore. Acko’s ratio of net incurred claims to net earned premiums improved to 66.3%, indicating better claims management. These financial improvements coincide with the company’s ongoing preparations for its initial public offering.
Why it matters
Acko’s shift to profitability is a critical milestone that strengthens investor confidence ahead of its upcoming IPO. The company’s ability to grow its insurance premiums while cutting operational costs signals improved unit economics and scalability, essential for sustaining competitive advantage in the burgeoning Indian insurtech market.
The move away from investment-linked insurance products towards pure protection offerings further aligns the company with profitable, lower-risk segments. This strategic repositioning combined with workforce optimization via AI adoption enables Acko to present a fintech model with solid fundamentals as it targets a valuation range of $2 billion to $2.5 billion.
What to watch next
Market watchers will closely evaluate Acko’s filing timeline and IPO pricing once it confidentially submits its draft red herring prospectus in the second half of 2026. The company’s partnership with investment banks ICICI Securities, Morgan Stanley, and Kotak Securities underscores their confidence in a successful public issuance by mid-2027.
Additionally, how Acko sustains profitability and navigates challenges from competitors and market conditions in India’s crowded insurtech sector will be pivotal. Monitoring premium growth, claims ratios, and the impact of technology-driven efficiencies will provide insight into the company’s long-term viability as a public entity.