Insurance – Apr-Jun’26 Earnings Preview – Mixed growth trends; slight impact on margin
Published on 06 Jul 2026
Private life insurers reported strong growth in 2MFY27 (+16% YoY) driven by sustained growth in retail protection, pickup in PAR and stable ULIP. We expect the momentum to continue in Q1; weakness in NPAR volume continues to be a challenge for some players (HDFC Life). We expect 1QFY27E VNB margin to see a drag from non-availability of ITC. Valuations continue to remain undemanding. We reiterate ‘BUY’ on Max FS (TP of INR2,035 at 1.9x FY28E P/EV), as our top pick. Key monitorables are: (1) growth guidance for FY27E, (2) margin recovery trajectory, and (3) clarity on draft commission guidelines.
