Steady growth, firm margins lift SBI Life to 52-wk high; analysts keep Buy

At 10 AM, SBI Life share price continued to trade in the northward direction, up 3.37 per cent at ₹1,902.60 per share. By comparison, BSE Sensex was trading 0.57 per cent higher at 84,695.60 levels.

SBI Life Insurance shares surged up to 4.48 per cent on Monday, October 27, 2025, to hit a fresh 52-week high of ₹1,923 on the BSE after the private life insurer reported steady September-quarter (Q2FY26) results. 

 

At 10 AM, SBI Life Insurance share price continued to trade in the northward direction, up 3.37 per cent at ₹1,902.60 per share. By comparison, BSE Sensex was trading 0.57 per cent higher at 84,695.60 levels.

 

Brokerages remained largely bullish on the stock amid healthy growth in new business, robust margin expansion, and resilience to the Goods and Services Tax (GST) impact on input tax credit (ITC). 

Most analysts maintained a ‘Buy’ rating on the SBI Life Insurance stock with price targets in the range of ₹2,200-2,320, implying an upside potential of up to 20 per cent from current levels.

 

SBI Life reported a 10 per cent year-on-year (Y-o-Y) rise in new business annualised premium equivalent (APE) at ₹5,950 crore in Q2FY26, broadly in line with estimates. The value of new business (VNB) grew 14-15 per cent Y-o-Y to ₹1,660 crore, aided by a favourable product mix and margin improvement. The VNB margin for the quarter expanded around 100 basis points (bps) Y-o-Y to 27.9 per cent despite the GST hit, compared with 26.9 per cent a year ago.

 

According to Motilal Oswal Financial Services, SBI Life delivered yet another strong quarter with consistent VNB margin expansion and steady APE growth.   ALSO READ | Should you bet on SBI Cards and Payment post its Q2? Analysts weigh 

“The company reported a 10 per cent Y-o-Y growth in new business APE, while absolute VNB rose 14 per cent, reflecting a margin of 27.9 per cent versus our estimate of 27 per cent,” the brokerage said. It noted that excluding the loss of input tax credit, the margin would have been around 28.5 per cent for the first half of FY26.

 

The brokerage highlighted that management expects individual APE growth of around 13-14 per cent for FY26, led by strong traction in protection and non-par products. “The GST impact is expected to be offset by increased demand for protection products, higher rider attachment, and improved operational efficiency,” Motilal Oswal added, maintaining its ‘Buy’ rating with a target price of ₹2,240, based on 2.1 times its September 2027 embedded value (EV).

 

Nuvama Institutional Equities also retained a positive stance, noting that the business mix continued to tilt in favour of higher-margin segments. “Q2 margin improved 118 bps Y-o-Y to 28 per cent, as non-par and protection products grew 40.5 per cent and 16.3 per cent Y-o-Y, respectively. The ITC impact on margins remains manageable and is likely to be offset by an improved business profile,” it said. Therefore, Nuvama maintained its ‘Buy’ rating, raising its target price to ₹2,320 (from ₹2,250 earlier).

 

Similarly, JM Financial said SBI Life’s 14.5 per cent Y-o-Y VNB growth and 100-bps margin expansion were driven by favourable mix changes and strong annuity growth. “Management expects to counter the VNB impact of GST 2.0 without altering distribution or customer benefits and has maintained its previous guidance of 13–14 per cent APE growth and 26–28 per cent margins,” it noted. JM Financial reiterated its ‘Buy’ call with an unchanged target price of ₹2,222, valuing the insurer at 2.3 times March 2027 EV per share.

 

Those at Antique Stock Broking echoed similar optimism, observing that non-par, annuity, and protection segments grew 41 per cent, 50 per cent, and 24 per cent, respectively, offsetting most of the GST-related impact. It too retained a ‘Buy’ rating with a target price of ₹2,222.  ALSO READ | Brokerages divided on Aditya Birla Sun Life AMC post Q2; Buy or sell? 

Across brokerages, the consensus view remains that the GST-related hit of about 170 bps on FY26 margins is transitory and manageable, given the underlying growth momentum and improving product mix. Analysts, therefore, expect the company’s margin guidance of 26-28 per cent to hold, supported by mix shifts and cost efficiencies.

 

For the first half of FY26, SBI Life’s APE grew 10 per cent Y-o-Y to ₹9,920 crore, while VNB increased 14 per cent to ₹2,750 crore. On the bottom line, shareholder profit after tax (PAT) declined 7 per cent Y-o-Y in Q2 to ₹490 crore but was up 4 per cent Y-o-Y in H1FY26 at ₹1,090 crore.

 

With its consistent growth in premium and sustained profitability metrics, analysts view SBI Life as one of the most resilient players in the sector. As Nuvama summed up, “SBI Life continues to demonstrate healthy execution, and the GST impact is a short-term headwind rather than a structural concern.”