Max Financial Services (MAXF IN) – Q2FY27 Result Update – H2 recovery in focus; margin expansion expected – BUY
Published on 28 Oct 2026
H1FY27 APE grew 11% YoY led by robust annuity/ PAR growth; however NPAR continued to decline in Q2 due to a high base effect. Management remains focused on expanding its protection and retirement segments while strong growth in newer partners and online channel offers a runway for diversification in distribution. We tweak our APE growth estimates to 15%/16% for FY27/FY28E factoring in softer H1 performance and a high base in H2FY26. Q2 VNB margin expanded to 27.0% driven by a favourable product mix. We raise our margin estimates to 25.5% for FY27/FY28E on account of higher contribution from margin-accretive products and operating leverage benefits. We roll-forward our valuation to FY29E and value MAXF using the Appraisal Value framework at 1.6x FY29E P/EV (vs. 1.9x earlier), arriving at a TP of INR2,025. Reiterate ‘BUY’.
