Axis Max Life Insurance (MAXLIFE) reported that its APE grew 15% year‑on‑year to ₹19.2 billion, matching market expectations. The growth was steady, reflecting robust underwriting and distribution performance.
In the same quarter, VNB increased 33% year‑on‑year to ₹4.5 billion, a 14% beat over forecasts. This pushed the VNB margin to 23.2%, up from 20.1% in Q1FY26, and the MOFSLe margin rose to 20.5%.
The company’s enterprise value stood at ₹304.2 billion, with an operating return on enterprise value of 14.9%, a slight improvement from 14.3% in the prior quarter. This indicates efficient capital utilisation.
Profit surged to ₹1.2 billion, a 37% year‑on‑year increase, underscoring strong revenue growth and cost control.
About 80% of the GST impact was absorbed in Q4FY26, leaving the residual effect largely behind the company. This means the tax burden is now more predictable.
Distribution remains a key strength, with over 690 Axis branches and more than 2,700 non‑Axis bank branches. This network offers ample room for deeper penetration into Tier‑2 and other markets.
Analysts have raised their VNB margin estimates by 50 basis points for FY27 and 100 basis points for FY28, citing the strong Q1FY27 performance. They expect the APE to grow at roughly 16% annually.
The BUY rating is reaffirmed, with a target price of ₹1,860 based on a 2× FY28E enterprise value multiple.