Insurance – Jan-Mar’26 Earnings Preview – Steady growth; margin headwinds easing
Published on 07 Apr 2026
Private life insurers reported healthy growth in Jan/ Feb-26 volumes (+14% YoY) driven by a surge in demand from GST exemption. We expect the momentum to continue in Q4; weakness in NPAR volume continues to be a challenge for some players (HDFC Life/ SBI Life). Expect 4QFY26E VNB margin to improve across players with the impact of GST exemption fading. Valuations continue to remain undemanding. Reiterate BUY on Max FS (TP of INR 2,040 at 2.2x FY27E P/EV) as our top pick. Key monitorable from 4QFY26E results are: (1) Growth guidance for FY27E (2) Margin recovery trajectory.
