SBI Life Stock Target: Goldman Sachs, Bernstein Give Buy Calls After Q3 Results

Synopsis: SBI Life shares gained focus after Q3 GWP stood at Rs 30,449.46 crore, profits rose, and brokerages raised target with an upside of upto 24%, citing strong premium growth and a resilient margins outlook.

The shares of this company, which offers diverse plans like term insurance, savings plans, Unit Linked Insurance Plans, child plans, pension solutions, and health riders, are in focus after Q3 results and brokerages’ rerating

With a market capitalization of Rs 2,02,025 crore, SBI Life Insurance Company Ltd’s shares on Thursday made a day high of Rs 2,071.35 per share, up by 0.9 percent from its previous day’s close price of Rs 2,052.60 per share. The share gave a return of 132 percent over the last five years.

Results Highlights

QoQ view: The NBFC reported that gross premium income grew by 21 percent to Rs 30,449.46 crore in Q3 FY26 from Rs 25,083.89 crore in Q2 FY26, where the first-year premium contributed Rs 7,919.34 crore, the renewal premium contributed Rs 17,471.70 crore, and the single premium contributed Rs 5,058.42 crore. Profit after tax grew by 16 percent to Rs 576.74 crore in Q3 FY26 from Rs 494.59 crore in the last quarter.

YoY view: The NBFC reported that gross premium income grew by 14% YoY to Rs 30,449.46 crore in Q3 FY26 from Rs 26,710 crore in Q3 FY25, where the first-year premium grew by 22 percent, the renewal premium grew by 20 percent, and the single premium grew by 24 percent QoQ. Profit after tax grew by 4 percent to Rs 576.74 crore in Q3 FY26 from Rs 550.82 crore in Q3 FY25.

Business growth and market position: The company retained its leadership in Individual Rated Premium at Rs 166.8 billion, commanding a 25.6 percent private market share in 9M FY26. Individual New Business Premium rose 13.5 percent to Rs 225.5 billion, with Protection NBP at Rs 34.1 billion. GWP grew 20 percent to Rs 733.5 billion, driven by strong single and renewal premium growth.

Distribution strength and channel mix: SBI Life operates a robust distribution network of 3,53,506 trained professionals across 1,176 offices nationwide. Its diversified channels include bancassurance, agency, and others, such as brokers and digital platforms. In 9M FY26, the APE mix stood at 62 percent bancassurance, 27 percent agency, and 11 percent others, with other channels’ Individual NBP rising 38 percent YoY.

Goldman Sachs on SBI Life

Goldman Sachs maintains a positive view on SBI Life, retaining its Buy rating and raising the target price to Rs 2,385 from Rs 2,300, implying a 16 percent upside. The brokerage remains confident in growth visibility and long-term value creation. The key upside driver is a better product mix, with higher contribution from retail protection and participating savings plans, which supported a VNB beat. Retail protection APE rose 27 percent YoY, while ULIP growth also improved to 16 percent YoY, indicating broader-based demand recovery across product segments.

On margins, Goldman notes some near-term pressure, with VNB margins declining 35 bps YoY due to ITC-related losses, while GST impact is estimated at 30–40 bps for FY26. However, management reiterated FY26 guidance of mid-teens retail APE growth and 27–28 percent margins, prompting a 3 percent upgrade to FY26–28 VNB estimates.

Bernstein on SBI Life Insurance

Bernstein has maintained its Outperform rating on SBI Life with an unchanged target price of Rs 2,550, implying a 24 percent upside from current levels, supported by sustained business momentum and stable profitability outlook. The brokerage highlights strong top-line traction, with Q3 new business growth of 24 percent YoY. Retail APE continues to accelerate, reflecting healthy demand and improving mix, while the bancassurance channel remains stable, providing steady volume support and reducing overall growth volatility.

SBI Life’s margins remain resilient at 26.6 percent despite the APE-related GST impact. Bernstein expects GST credit loss to weigh on FY27 margins by 30 to 40 bps. However, management guidance of 13–14 percent growth and FY26 margins within the 26 to 28 percent band supports a stable profitability outlook.

SBI Life Insurance Company is a major Indian life insurer, a joint venture with State Bank of India, offering protection, savings, pension, and health products for individuals and groups via a vast network, including SBI branches, agents, and digital platforms, focusing on customer-first service, ethical standards, and financial security for millions.

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