SBI Life Insurance Company shares gained over two percent in trade on July 25 as brokerages reiterated their bullishness on the insurance player following its earnings show for the quarter ended June 30, 2025.
SBI Life reported a 14 percent year-on-year rise in net profit to Rs 594 crore for Q1 FY26 up from Rs 520 crore in the same quarter last year.
The company’s net premium income for the quarter stood at Rs 17,178.5 crore, marking a 14 percent increase over Rs 15,105.5 crore recorded in Q1 FY25. The value of new business (VNB) generated during the quarter stood at Rs 1,090 crore, reflecting continued growth in new business acquisition.
At 9.35 a.m., shares of the firm were quoting Rs 1,834, higher by 2.3 percent on the NSE compared to the previous session's closing price.
Should you buy, sell, or hold shares of SBI Life?
Hong Kong-based CLSA maintained an 'outperform' rating on SBI Life with a target price of Rs ,180 per share. The brokerage highlighted a strong Q1FY26 performance, with VNB (Value of New Business) margin improving by 60 basis points year-on-year to 27.4 percent.
This margin expansion was driven by a shift in the product mix away from ULIPs. However, Annualized Premium Equivalent (APE) growth came in at 9 percent year-on-year, weighed down by a flat performance in the agency channel. Despite this, management remains confident of achieving mid-teens APE growth in FY26.
HDFC Securities has a 'high-conviction buy' on SBI Life, anchored on three 'power and sustainable moats.' The first is exclusive access to SBI’s massive distribution network. SBI Life's scope for improvement in margin-accretive traditional mix and cost leadership are the second and third moats.
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