SBI Life Insurance Company (SBILIFEIN) – Q2FY26 Result Update – Expect growth to pick-up; margins holding well – HOLD
Published on 27 Oct 2025
2QFY26 APE grew 10% YoY led by a pick-up in the NPAR and protection portfolio. We expect FY26 APE to grow 12.5% YoY (vs. 10% for H1FY26), in-line with guidance. Q2 VNB margin stood intact at 27.9% after factoring an impact of ~80 bps from GST exemption. Despite headwinds from GST, company has guided margins to range between 26%- 28%. We build 27% for FY26 with a pick-up in share of protection/ NPAR in FY27/ FY28E. We value SBI Life using the Appraisal Value framework with a slight change in multiple to 2.4x FY27 P/EV (vs. 2.3x earlier). Maintain HOLD at a TP of Rs 1,950 as stock price captures all the positives.
