SBI Life Insurance Company (SBILIFE IN) – Q4FY26 Result Update – Healthy growth and margin outlook – Upgrade to ‘BUY’
Published on 23 Apr 2026
Q4FY26 APE grew 5% YoY led by a pick-up in PAR/Annuity and retail protection. On FY26 basis, SBI Life has grown 13% YoY; we build a similar run-rate over FY27-FY28E, in-line with the guidance. Q4/FY26 VNB margin contracted to 28.4%/27.5% impacted by GST exemption. We build a gradual improvement to 27.6%/ 27.7% for FY27/FY28E as the drag from GST exemption neutralizes and the company diversifies away from ULIP. We roll forward to FY28E with a multiple of 2.0x (vs. 2.5x earlier) and value SBILIFEIN using the Appraisal Value framework with a TP of INR 2,200. Upgrade to ‘BUY’ on healthy APE growth and margin outlook over FY26-28E.
