SBI Life Q1 Preview: Modest APE growth seen, margin gains to drive VNB

SBI Life’s margins may shine in Q1 despite a softer top-line growth

SBI Life is expected to deliver modest growth in its annual premium equivalent (APE) for the April–June quarter, while robust margins are likely to underpin healthy growth in value of new business (VNB), analysts said ahead of the life insurer’s results scheduled for July 24, 2025.

According to Moneycontrol's poll, SBI Life is projected to report an 8.2 percent year-on-year (YoY) rise in APE — an insurance industry metric that represents the annualised value of new policies sold — climbing to Rs 3,941 crore from Rs 3,640 crore in the same quarter last year.

Meanwhile, the company’s VNB — which indicates the profitability of the new business written — is expected to grow by around 14 percent YoY, reaching approximately Rs 1,103 crore in Q1FY26 compared to Rs 970 crore in Q1FY25.

Estimates of analysts polled by Moneycontrol are shown to be in a narrow range, meaning any positive or negative surprises may elicit a sharp reaction in the stock price. Among the brokerages polled, Axis Securities rolled out the most bullish projections while Kotak Institutional Equities forecasted the slowest growth for SBI Life.

What factors are driving the earnings?

Margin expansion: Brokerages expect SBI Life's VNB margins to sharply expand to 28 percent in Q1FY26 from 27 percent in the year-ago period due to shift in product mix towards non-par and protection segments. However, investments in distribution are likely to partially offset the positive impact.

Modest APE growth: APE growth is expected to remain modest in single digits during the quarter, owing to a relative slowdown in the unit-linked insurance plan (ULIP) segment as well as the high base effect of Q1FY25.

Gross premium growth: The company’s gross premium income is forecast to rise between 13–14 percent YoY in the June quarter, which should also support the overall financial performance.

What to look out for in the quarterly show?

Investors and analysts will closely track the company’s outlook for growth in the banca channel, particularly its business through State Bank of India branches. Comments from management on the trajectory of VNB margins, as well as any updates on changes in the product mix and strategy, will also be keenly watched.

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