Insurance – Jul-Sep’26 Earnings Preview – Healthy growth outlook; slight pressure on margin
Published on 06 Oct 2026
Private life insurers have seen healthy growth in July/ Aug’26 (+13% YoY), supported by a pick-up in ULIP/ NPAR, strong annuity and sustained momentum in protection, albeit at a moderated pace. We expect 2QFY27E margins to improve QoQ with growth in margin-accretive segments (protection and NPAR); however, impact of GST exemption is likely to be a drag. Valuations have seen a significant correction due to regulatory overhang. We reiterate ‘BUY’ on Max FS (TP of INR2,025 at 1.9x FY28E P/EV), as our top pick, backed by a strong proprietary channel. Key monitorables are: (1) growth trajectory, (2) margin outlook, and (3) decision on the proposed commission guidelines.
