Max Financial Services (MAXF IN) – Q4FY26 Result Update – Strong growth supported by margin expansion – BUY
Published on 13 May 2026
Q4FY26 APE grew 18% YoY driven by robust growth in protection, PAR and ULIP segment; we expect growth momentum to sustain in FY27E. We build an APE growth of 17%/16% in FY27/FY28E driven by an uptick in retail protection/ annuity and recovery in NPAR and credit life business. Despite the drag from GST exemption, Q4 VNB margin expanded to 28.2% on re-pricing in term (by ~2-3%) and a favorable product mix. We revise our margin estimates upward by 30/ 10 bps to 25.0%/ 25.1% for FY27/ FY28E, factoring in a strong performance in FY26. We roll-forward to Mar’28 and value MAXF using the Appraisal Value framework with TP of INR 2,075 (1.9x FY28E P/EV). Reiterate ‘BUY’.
