ICICI Prudential Life Insurance Company (IPRU IN) – Q3FY26 Result Update – Growth picks up; structural improvement in margin – Upgrade to ‘Accumulate’
Published on 14 Jan 2026
While Q3 APE grew 3.5% YoY, company saw a strong surge in retail protection (+41% YoY) due to GST exemption. We expect the momentum to continue in Q4/ FY27E led by strong traction in retail protection, steady growth in NPAR and recovery in credit life. Q3 VNB margin improved to 24.4% driven by an increase in retail protection volume. Moreover, steady growth in NPAR, higher sum assured/ tenure and improved rider attachment helped offset the drag on profitability from GST exemption. We increase our FY26- FY28E VNB margin estimates by 20-50bps, factoring a sustainable improvement in margin profile. We use the appraisal value framework to value IPRU at a TP of Rs725 (1.9x FY27E P/EV). Upgrade to ACCUMULATE as valuation continues to be undemanding.
