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SBI Life (Target - ₹2,200, Buy) - “Navigated well in challenging FY26, but regulatory overhang still clouds FY27E”

ICICIdirect Research 24 Apr 2026 DISCLAIMER

SBI Life reported a steady FY26, with new premium accretion growing 20% YoY and VNB margin which remained at 27.5%.
While group (+55% YoY) and annuity (+34% YoY) business growth remained robust, individual business growth remained slower at 8% YoY. Within individual segment, unit linked remained muted with 2% growth, while protection business (i.e term insurance which is also a high margin business) growth remained strong at 23% YoY. VNB margin (metrics to understand profitability of insurance business) remained steady at 27.5%, despite GST and labour cost related impact during the year.
Overall, while the company continues to deliver stable growth with improving business mix, the combination of moderation in retail momentum, elevated costs and regulatory uncertainty on distribution suggests a more measured outlook. Thus, near-term performance is likely to remain range-bound, with execution on distribution diversification and cost control being key monitorable. Thus, we value the stock at ~2x FY28E EV.

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