The move comes after the company reported its Q4 earnings, followed by mixed but largely constructive reactions from brokerages.
Jefferies has maintained a ‘Buy’ rating on the stock with a price target of ₹2,550, citing that Q4 VNB came in 4% to 6% below estimates due to lower margins. However, the brokerage expects a potential upside to FY27 VNB margin guidance of 27% to 28%, with its own estimate at 28.3%.
It also sees APE momentum in the SBI channel sustaining into FY27, translating into 17% VNB growth, higher than peers like HDFC Life Insurance Company Ltd. and ICICI Prudential Life Insurance Company Ltd..
Jefferies also pointed to limited risks from open architecture at SBI and believes SBI Life is better placed to manage commission regulations due to its lower cost structure.
Nomura has reiterated a ‘Buy’ rating with a price target of ₹2,440, calling FY26 a tough year but noting that the company has navigated it well.
It expects 14% year-on-year APE growth in the near term and highlighted strong operating variance and industry-leading return on embedded value.
HSBC also maintains a ‘Buy’ rating with a price target of ₹2,270. It said the Q4 margin impact was driven by slower APE growth and GST-related changes, though growth in the non-SBI channel remained encouraging.
The brokerage expects investments in new products and distribution channels to support higher-than-industry APE growth, with around 18% CAGR in embedded value between FY26 and FY29.
For Q4, SBI Life reported new business premium of ₹11,220 crore, above the CNBC-TV18 poll estimate of ₹10,680 crore.
Total APE came in at ₹5,750 crore versus expectations of ₹5,896 crore, while VNB stood at ₹1,630 crore compared to ₹1,669 crore estimated. VNB margin was largely in line at 28.4%.
The company has guided for 14% growth in FY27, with margins expected in the 27% to 28% range.
