SBI Life Insurance Company (SBILIFE IN) – Q1FY27 Result Update – Strong growth; cut in margin due to GST/ULIP recovery – BUY
Published on 25 Jul 2026
Q1FY27 APE grew 35% YoY driven by group protection portfolio. Company has maintained APE guidance of 14-15% in Individual APE for FY27E; we build an APE CAGR of 13% over FY26-28E, on account of strong volume in Q1. Q1FY27 VNB margin contracted to 26.3% on account of unfavorable product mix and GST impact. We build a margin of 27.2%/ 27.4% over FY27/28E, factoring the impact of GST in Q2FY27 and recovery in low-margin ULIP business. We ascribe a multiple of 2.0x (unchanged) on FY28E and value SBILIFEIN using the Appraisal Value framework with a TP of INR 2,200. Maintain ‘BUY’ on healthy growth outlook over FY26-28E.
