SBI Life (SBIL)

Equity Research 24 July 2026 | 7:24PM IST

SBI Life (SBIL.BO) 1Q27 above: Group and retail protection drive beat; remain Buy

SBIL.BO 12m Price Target: Rs2,235.00 Price: Rs1,857.65 Upside: 20.3% BUY Shyam Srinivasan, CFA SBIL reported VNB of Rs14.1bn (+29% yoy, +15% vs GSe) driven by | Goldman Sachs India SPL stronger protection topline. On the savings side, slower offtake in ULIPs (+7% yoy) was offset by higher contribution from par savings (+35% yoy) and non par savings (+27% yoy). Protection growth was led by Group term (+313% yoy), Retail protection up 18% yoy, given ongoing momentum post GST exemption. Overall margins declined 122bps yoy due to the full impact of ITC loss (-110bps), inferior mix partially offset by higher RFR assumptions. Key Data _____________________________________ Market cap: Rs1.9tr / $19.3bn 3m ADTV: NA Key call takeaways: 1) Banca steady: SBI channel maintained c. India India Insurance 10% growth (FY26:11%) driven by non par strength partially offset M&A Rank: 3 by slower ULIP/Par; SBIL reiterating that this channel can grow at GS Forecast __________________________________ >10% CAGR in medium term, given low levels of under penetration. 3/26 3/27E 3/28E 3/29E Net inc. (Rs mn) 24,703.0 42,369.2 50,649.4 55,549.2 Recently, SBI parent reaffirmed that SBI life will be the sole insurance EPS (Rs) New partner at SBI branches. 2) Agency - robust growth: Agency growth EPS (Rs) Old EPS growth (%) improved to 24% yoy driven by Par/Non Par up 54%/23% P/E (X)

respectively; SBIL expects this to grow c. 20%+ over medium term Dividend yield (%) 0.1 0.3 0.4 0.4 P/B (X) 9.9 8.2 6.9 5.9 following the investments cycle, 3) Protection: SBIL noted that retail ROE (%) -- -- -- --

protection grew (+18% yoy) and out performance will continue; P/EV (X) 2.3 2.0 1.7 1.4

Retail sum assured grew 46% as SBIL is selling more pure protection 6/26 9/26E 12/26E 3/27E EPS (Rs) % of mix) as well as accelerating rider attachments in its savings products, Group term was lumpy in Q1 4) GST impact: While Q1 saw GS Factor Profile ______________________________ Growth 110bps impact as they have not effected any cost changes, SBIL guided that this will be lower in Q2, 5) Guidance: SBIL reiterated Financial Returns

Individual APE guidance of 14% growth while keeping margins c. Multiple

27-28% for FY27. 6) Returns: SBIL reported an EV of Rs853bn, up Integrated 15% yoy even after absorbing the GST related headwinds. Percentile 20th 40th 60th 80th 100th We raise our FY27E-FY29E VNB estimates by up to 4% to largely factor in better topline development. We remain Buy-rated, with an SBIL.BO relative to Asia ex. Japan Coverage SBIL.BO relative to India Insurance unchanged TP of Rs 2,235 that implies ~20% upside potential. Source: Company data, Goldman Sachs Research estimates. Valuation remains attractive at 1.7x FY28E P/EV (x), slightly below See disclosures for details. historical average.

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Goldman Sachs SBI Life (SBIL.BO)

SBI Life (SBIL.BO) Balance Sheet (Rs mn) ______________________________________ BUY Rating since Feb 23, 2021 3/26 3/27E 3/28E 3/29E Cash & cash equivalents 111,253.3 127,102.1 148,780.3 177,751.7 Total investments 5,156,737.2 5,947,805.3 6,850,791.5 7,813,896.4 Equity investments -- -- -- -- Ratios & Valuation __________________________________________ Debt investments 5,156,737.2 5,947,805.3 6,850,791.5 7,813,896.4 3/26 3/27E 3/28E 3/29E Investments (excl. fixed income) -- -- -- -- ROE (%) -- -- -- -- Net customer loans & advances -- -- -- -- ROTE (%) Insurance contract assets -- -- -- -- ROA (%) 0.5 0.7 0.7 0.7 Reinsurance contract assets -- -- -- -- ROEV (%) Net intangibles -- -- -- -- Div. payout ratio (%)…