SBI Life rises 3% on posting Q1 results; Should you buy, sell or hold?

SBI Life Insurance Q1 results review: SBI shares rose 2.4 per cent in trade on Friday, on the BSE as the company posted Q1 results; here's what brokerages suggest

SBI Life Insurance Q1 results review: SBI Life shares rose 2.4 per cent in trade on Friday, on the BSE, after the company posted its Q1 results. The stock logged an intra-day high at ₹1,843.15 per share.

 

At 9:26 AM, SBI Life share price was trading 2.19 per cent higher at ₹1,837.7 per share on BSE. In comparison, BSE Sensex was down 0.5 per cent at 81,770.19. The market capitalisation of the company stood at ₹1,84,227.16 crore.   READ STOCK MARKET LATEST UPDATES TODAY LIVE

SBI Life Q1FY26 results 

SBI Life Insurance reported a 14 per cent growth in net profit to ₹590 crore for the June quarter of the current financial year. The company's profit after tax stood at ₹520 crore in the April-June quarter of the previous financial year.

 

The company’s new business premium of the insurance firm rose to ₹7,270 crore during the period under review, compared to ₹7,033 crore in the June 2024 quarter.

 

Its renewal premium has increased 24 per cent to ₹10,550 crore as against ₹8,540 crore in the corresponding period ended on June 30, 2024.

 

Asset Under Management (AUM) grew 15 per cent from ₹4,14,770 crore as on June 30, 2024, to ₹4,75,810 crore as on June 30, 2025, with a debt-equity mix of 60:40, it said.

SBI Life Q1 results analysis: Emkay Global Financial 

Emkay Global Financial Services has maintained a ‘Buy’ on SBI Life with an unchanged target of ₹2,100 per share, given the favourable risk reward. SBI Life’s Q1FY26 performance was impressive, with a healthy Value of New Business (VNB) margin of 27.4 per cent, up by 60 basis points (bps) year-on-year (Y-o-Y) as against the estimate of 27.5 per cent and 27 per cent, respectively, according to the brokerage.

 

“The market seems to be underappreciating its sustained performance delivery, which echoes in its FY17-25 numbers – it has compounded EV and VNB at 19.8 per cent and 24.4 per cent, respectively, without any external capital infusion while seeing interest rate movements, equity volatilities, and the Covid-19 shock,” the brokerage note read. 

SBI Life Q1 analysis: Nuvama Institutional Equities 

The brokerage continued with a ‘Buy’ rating and raised its target price to ₹2,250 per share from ₹2,100. SBI Life reported muted Q1FY26 individual Annualised Premium Equivalent (APE) growth of 6.4 per cent Y-o-Y due to a slowdown in linked products, while group APE surged 38.1 per cent Y-o-Y. VNB margin improved 60 bps Y-o-Y to 27.4 per cent as the mix came in favour of higher-margin business. This led to VNB expansion of 11.7 per cent Y-o-Y at ₹1,090 crore, up 6.2 per cent as compared to the brokerage estimate.

 

“We are maintaining FY26E/27E VNB, but increasing target valuation to 2.3x FY27E P/EV,” Nuvama said.