SBI Life Insurance shares slipped 3 per cent in trade on BSE, logging an intra-day low at ₹1,827.05 per share. However, At 9:48 AM, SBI Life’s share price recovered slightly and was trading 0.3 per cent lower at ₹1,879.10 per share. In comparison, the BSE Sensex was down 0.67 per cent at 77,989.69. The stock was under pressure after the company released its Q4FY26 results after market hours on Wednesday.
SBI Life Q4FY26 results highlights:
SBI Life Insurance’s net profit slipped 1.09 per cent year-on-year (Y-o-Y) to ₹804.6 crore in Q4FY26 from ₹813.5 crore in Q4 FY25.
The insurer's net premium income rose 16 per cent Y-o-Y to ₹27,684 crore in the quarter, compared to ₹23,860.7 crore in Q4 FY25. The annualised premium equivalent (APE) of SBI Life rose by 5.5 per cent Y-o-Y to ₹5,750 crore.
Value of new business (VNB) — dropped to ₹1,630 crore as against ₹1,670 crore in Q4 FY25. The VNB margin was at 28.35 per cent as against 30.6 per cent. Check detailed results here
Brokerages’ view on SBI Life Insurance Stock
Nomura | Buy | Target cut to ₹2,440 from ₹2,455
Nomura has maintained its rating on SBI Life Insurance with a marginally trimmed target price, implying a price-to-embedded value (PEV) of 2.17x and a price-to-value of new business (PVNB) of 15.1x on March 2028 estimates. These valuations represent 14 per cent and 4 per cent premiums over HDFC Life on PEV and PVNB, respectively.
Despite a challenging regulatory landscape for the insurance industry since FY23, SBI Life has delivered annual premium equivalent (APE) and value of new business (VNB) compound annual growth rate (CAGRs) of 14-16 per cent, along with an average return on embedded value (ROEV) of 20.9 per cent over FY22-26. This compares favourably with HDFC Life's APE-VNB CAGRs of 14-11 per cent and average ROEV of 17 per cent, and Axis Max Life's APE-VNB CAGRs of 17-13 per cent and average ROEV of 19.8 per cent over the same period.
The brokerage rolled forward its estimates to March 2027, but noted that FY26 embedded value came in 3 per cent below its estimate due to negative economic variance — the primary reason for the marginal trim in target price. The key risk to Nomura's thesis is the possibility that the government will mandate that banks adopt an open-architecture model for insurance distribution.
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Emkay Global Financial Services | Buy | Target: ₹2,250
Analysts noted that SBI Life delivered a healthy performance in Q4FY26, with a VNB margin of 28.3 per cent — ahead of both the consensus estimate of 28 per cent and Emkay's estimate of 27.4 per cent. Consequently, Q4 VNB came in at ₹1,630 crore, 1.5 per cent above the brokerage's estimate.
Further, management guided for approximately 14 per cent APE growth in FY27, with VNB margin expected to remain rangebound at 27-28 per cent. Growth is expected to be driven by the agency channel, supported by branch additions, agent recruitment, and improved productivity. The management remains focused on improving the product mix to drive margin expansion over the medium term.
Emkay raised its APE estimates by approximately 1 per cent and VNB margin estimates by 20 basis points, reflecting Q4 developments. This translates into a 1-2 per cent increase in VNB estimates over FY27-28. The brokerage reiterated its 'Buy' rating, backed by SBI Life's strong brand, its warhorse bancassurance distribution channel through State Bank of India, and its structural low-cost advantage.
Motilal Oswal Financial Services | Buy | Target raised ₹2,350 from ₹2,270
Analysts noted that SBI Life’s Q4 VNB margin was impacted by GST changes, which were offset, to some extent, by a strong traction in protection products, rising rider attachment rates, and a shift in the product mix toward non-ULIP products. Going forward, steady traction in non-linked products is expected to drive VNB margin expansion.
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Further, continued investments in agency and digital channels are expected to drive overall growth, supported by a gradual growth recovery in the bancassurance channel. Motilal Oswal has slightly cut its APE estimates and expects 14 per cent CAGR over FY26-28E, resulting in 2 per cent decline in VNB/EV estimates for both FY27/FY28. Operating RoEV is expected to remain stable at 18 per cent.
JM Financial Institutional Securities | Add | Target raised to ₹2,200 from ₹2,155
The brokerage slightly cut its APE growth but raised margin forecasts. March industry volume data and these Q4 results reinforced that SBI Life is the best play in life insurance (a defensive sector in itself) when there is demand uncertainty; it remains JM Financial’s top pick in the space.
Disclaimer: Views and outlook shared belong to the respective brokerages and analysts and are not endorsed by Business Standard. Readers are advised to exercise discretion.