Max Financial Services (MAXF IN) – Management Meet Update – Growth to sustain; margin outlook favorable – BUY
Published on 01 Dec 2025
We met with the management of Axis Max Life to identify key drivers of growth and margin outlook over the medium-term. Company expects tailwinds from strong protection growth in H2 and has launched new products across PAR/ NPAR and annuity to drive growth. It expects agency/ e-commerce channel and new banca partners to sustain growth momentum over the medium-term. While FY26E VNB Margin is likely to see a drag from GST exemption due to non-availability of ITC, it expects re-balancing of product mix (towards NPAR/ protection) and cost optimization initiatives to absorb the hit. We build a positive margin profile - 24.2%/ 24.6% for FY26/ FY27E as the share of NPAR/ protection improves. We value Max Life using the Appraisal Value framework with a TP of Rs1,925 (2.1x FY27E P/EV vs. 2.0 earlier). Strong outlook on growth and margin trajectory to be key positives. Retain BUY.
