SBI Life Q3 Results: Why Prabhudas Lilladher Maintains ‘Hold’ with ₹2,125 Target
It’s Thursday morning, January 29, 2026, and if you’ve been tracking the big names in the insurance space, the latest from SBI Life just hit the ticker. Prabhudas Lilladher (PL) came out with a “Hold” rating and a target of ₹2,125 following the Q3FY26 results. The thing is, the stock is catching a bit of […] The post SBI Life Q3 Results: Why Prabhudas Lilladher Maintains ‘Hold’ with ₹2,125 Target first appeared on Business League.
It’s Thursday morning, January 29, 2026, and if you’ve been tracking the big names in the insurance space, the latest from SBI Life just hit the ticker. Prabhudas Lilladher (PL) came out with a “Hold” rating and a target of ₹2,125 following the Q3FY26 results.
The thing is, the stock is catching a bit of a breeze today—not the good kind. It’s trading around ₹1,968, down about 4% as the market digests some “margin compression” news. Or nothing.
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SBI Life Q3 Highlights: Field Notes
It’s an ongoing situation where the growth numbers look great on paper, but the “fine print” on margins is making analysts cautious. Here’s the ground reality:
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The Growth Engine: APE (Annualised Premium Equivalent) grew a solid 24% YoY, driven by people piling into ULIPs and PAR (Participating) portfolios. Let’s be real—the volume is definitely there. Those too.
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The Margin Squeeze: The VNB (Value of New Business) margin slipped to 26.6%, down 35 basis points. The culprit? GST exemption impacts and some ITC losses. PL expect this to stabilize around 27.4% for the full year.
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The Valuation Call: PL tweaked their target to ₹2,125 (using a 2.5x FY27E P/EV multiple). The thing is, they believe the current price already “captures all the positives.” Essentially, the easy money has been made.
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The Financial Trend: Net profit for the quarter was up about 5% to ₹577 crore, but it missed some aggressive analyst estimates of ₹610 crore. And here’s the kicker—operating expenses jumped 45% because commissions and employee costs are skyrocketing. Or nothing.
SBILIFE Investment Snapshot (Jan 29, 2026)
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| Metric | Q3 FY26 Performance | Analyst View (PL) |
| APE Growth | +24% YoY | Stronger than expected. |
| VNB Margin | 26.6% | Declining (GST impact). |
| Net Profit | ₹577 Crore | Steady, but missing top-tier beats. |
| Target Price | ₹2,125 | HOLD (Upside capped). |
| Current Price | ₹1,968 | Market reacting to expense jump. |
And Here’s the Kicker…
While PL is playing it safe with a “Hold,” other shops like Emkay are still yelling “Buy” with a target of ₹2,450, betting that the product mix will shift back to high-margin protection plans by year-end. The thing is, the Rupee just hit a record low of 92 per Dollar this morning, and that’s making the whole “Financials” sector a bit twitchy. Those too.
One side comment—if you’re looking for a “dip,” the 200-day moving average is sitting around ₹1,850-₹1,900. If it touches that, the conversation changes. It’s an ongoing situation. Or nothing.
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End…
The post SBI Life Q3 Results: Why Prabhudas Lilladher Maintains ‘Hold’ with ₹2,125 Target first appeared on Business League.
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