Max Financial Services (MAXF IN) – Q3FY26 Result Update – Growth to sustain; margin outlook positive – BUY
Published on 12 Feb 2026
Q3FY26 APE grew 30% YoY driven by robust growth in protection and PAR segments and company expects the momentum to continue. We build in APE growth of 18%/17% in FY26/FY27E driven by a strong uptick in retail protection post GST exemption, new launches in PAR/NPAR/annuity, and recovery in credit life volumes. Q3 VNB margin was resilient at 24.1%, and the company expects the drag from GST exemption to be offset by a favorable product mix. We revise our margin estimates upward to 24.4%/ 24.7% for FY26/ FY27E, factoring in strong performance in 9M and gradual margin recovery. We value MAXF using the appraisal value framework with TP of Rs2,050 (2.2x FY27E P/EV vs. 2.1 earlier). Strong outlook on growth and margin trajectory are the positives. Reiterate ‘BUY’.
