ICICI Prudential Life Insurance Company (IPRU IN) – Q2FY26 Result Update – Growth momentum to pick up; margin improves – BUY
Published on 15 Oct 2025
Q2 APE grew -3% YoY on an unfavourable base due to a decline in ULIP. We expect the momentum to pick up in H2FY26 (15.5% YoY growth), led by uptick in credit life/ ULIP and healthy traction in retail protection and NPAR. VNB margin expanded to 24.4% in 2QFY26 led by a favourable shift in product mix. Shift towards NPAR, higher sum assured and rider attachment rates are likely to offset the drag on profitability from GST exemption. We make marginal changes to our FY26/ FY27E APE growth estimates and increase FY26/ FY27E VNB margin factoring in a strong margin profile in H1FY26. We use the appraisal value framework to value IPRU at a TP of Rs710 (1.9x FY27E P/EV). Retain BUY.
