SBI Life Shares Gain After Q2 Results; Brokerages See Up to 39% Upside

Shares of SBI Life Insurance Company Ltd. surged nearly 5% on Monday, October 27, following its September quarter (Q2 FY26) earnings and upbeat brokerage reviews. Analysts at Citi, Jefferies, and Nuvama have all retained their ‘buy’ ratings, forecasting up to a 39% upside for the stock.

At around 10:40 am, the stock was trading 3% higher at ₹1,896 apiece, after touching an intraday high of ₹1,923.9. So far in 2025, SBI Life has gained 35.4%, supported by consistent earnings performance and steady margin growth.

Citi Maintains ‘Buy’; Targets ₹2,550

Global brokerage Citi has maintained a ‘buy’ rating on SBI Life, setting a target price of ₹2,550 per share, implying a potential 39% upside from the previous close of ₹1,839.8.

Citi highlighted that SBI Life’s Value of New Business (VNB) grew 14% year-on-year in both Q2 and the first half of FY26. Its VNB margin expanded by 100 basis points (bps) from the previous year and 45 bps sequentially, surpassing expectations by 90 bps.

“The margin expansion, driven by a shift toward high-yielding products, is encouraging,” Citi said, adding that the impact of the input tax credit (ITC) withdrawal was contained at just 174 bps annually.

Citi also noted that management remains confident about a favourable business mix and highlighted that the absence of distributor re-negotiations, especially in agency channels, supports near-to-medium-term growth.

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Jefferies: Margins Strong Despite GST Impact

Jefferies has also maintained its ‘buy’ rating, with a target price of ₹2,270 per share.

The brokerage said VNB growth in the second quarter beat estimates, driven by a better product mix and higher protection attachment on savings plans.

Although individual annualised premium equivalent (APE) growth was soft at 6% in the first half of FY26, the September month showed healthy growth, keeping management’s FY26 APE growth guidance of 13–14% intact.

Jefferies expects margins to stay within the guided 26–28% range, despite the impact of new GST reforms, suggesting resilience in business fundamentals.

Nuvama Sees ₹2,320 Target; Praises Margin Expansion

Nuvama also reiterated a ‘buy’ call with a target price of ₹2,320 per share.

The brokerage reported that SBI Life’s total APE grew 10% in Q2, with retail APE rising 6% and group APE jumping 55.8% year-on-year. The company’s VNB margin expanded by 118 bps to 28%, driven by a favourable mix shift toward high-margin products.

As a result, VNB rose 14.9% YoY to ₹1,660 crore, outperforming Nuvama’s internal forecast of 6% growth.

“The ITC impact on margins remains manageable and is likely to be offset by an improved business profile,” Nuvama said, reiterating FY26 growth guidance of 13–14% APE and 26–28% VNB margins.

Stock Performance and Outlook

Following the strong quarterly performance and optimistic outlook, SBI Life’s stock gained nearly 5%, closing among the top gainers in the insurance sector.

Brokerages agree that the company’s sustained margin improvement, diversified product mix, and stable distribution support its growth trajectory.

With multiple brokerages maintaining ‘buy’ calls and double-digit upside targets, investor sentiment around SBI Life Insurance remains robust.

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