Acko Turns Profitable in FY26, Eyes IPO
Infographic: Acko Achieves Profitability in FY26 Ahead of IPO Plans
Key Highlights
Insurtech unicorn Acko achieves profitability in FY26 with ₹43.6 Cr net profit, marking a key milestone ahead of its anticipated IPO. Read more about their financial turnaround.
Acko Reports Strong Financial Turnaround in FY26
Insurtech unicorn Acko has achieved a significant financial milestone, turning profitable in the fiscal year 2026. The company announced a net profit of ₹43.6 crore for FY26, a substantial improvement from the ₹193.4 crore loss recorded in the previous fiscal year, FY25. This turnaround in profitability comes at a crucial juncture as Acko actively gears up for its planned (IPO).
Growth in Net Earned Premium and Investment Income
The company’s robust financial performance in FY26 was largely driven by a healthy increase in its net earned premium, which rose by 26% year-on-year to ₹191.8 crore, up from ₹152.2 crore in FY25. This growth reflects the expanding reach and success of Acko’s core insurance business. While the income from investments saw a slight decline of 10.4% to ₹51.2 crore in FY26 from ₹57.1 crore in FY25, specific components within investment income showed positive trends. Profit on the sale or redemption of investments surged by 48.3% to ₹8.9 crore, and interest, dividend, and rent income increased by 14.2% to ₹42.2 crore. Overall, Acko’s total income experienced a significant uplift, climbing 39.7% to ₹199.5 crore in FY26 compared to ₹142.8 crore in the prior year.
Operational Efficiency and Improved Claims Ratio
Acko demonstrated improved operational efficiency and claims management during FY26. Net claims incurred saw a rise of 19.2% year-on-year, reaching ₹127.1 crore. Concurrently, operating expenses related to the insurance business were effectively managed, falling by 12.3% to ₹62.3 crore over the fiscal year. This strategic cost management contributed to a notable improvement in the company’s net incurred claims to net earned premium ratio, which decreased to 66.3% in FY26 from 69.95% in FY25, indicating better underwriting and claims handling performance.
Strategic Preparations for IPO
The achievement of profitability aligns with Acko’s strategic preparations for its upcoming IPO. In a move seen as part of pre-IPO restructuring, the insurtech unicorn recently reduced its workforce by approximately 5%, affecting around 60 employees. The company cited increased adoption of Artificial Intelligence and automation as contributing factors to this workforce adjustment. Furthermore, Acko has signaled a strategic shift towards focusing on “pure protection” insurance offerings, moving away from investment-linked products like ULIPs and endowment plans earlier this year.
Company Background and IPO Outlook
Founded in 2016 by Varun Dua and Ruchi Deepak, Acko quickly established itself as a significant player in the insurtech space, earning unicorn status in 2021 after securing $255 million in its Series D funding round. To date, the company has raised approximately $458 million from prominent investors including Lightspeed, Elevation Capital, and Accel. In recent developments, Acko has appointed ICICI Securities, Morgan Stanley, and Kotak Securities as its bankers for the proposed IPO. The company is reportedly targeting a valuation between $2 billion and $2.5 billion, with plans to confidentially file its Draft Red Herring Prospectus (DRHP) in the second half of 2026 and aims for a listing in the first half of 2027. The public issue is expected to include both a fresh issuance of shares and an offer-for-sale () component.