SBI Life Q1 FY26 results: PAT up 14% to ₹594 cr

Results snapshot and why the quarter mattered

SBI Life Insurance Company disclosed its Q1 FY26 performance on July 24, reporting higher year-on-year profit on the back of stronger renewal premiums. The insurer said the quarter reflected robust financial and operational performance, while also marking 25 years of operations.

The headline numbers showed a 14% year-on-year rise in profit after tax (PAT) to ₹594 crore, alongside a 14% increase in net premium income to ₹17,178.5 crore. At the same time, sequential trends were weaker, with PAT down 27% from Q4 FY25 and net premium income down 28% from the January to March quarter.

Profit growth, but sequential moderation

For Q1 FY26, SBI Life’s PAT rose to ₹594.37 crore from ₹519.52 crore in Q1 FY25. Basic earnings per share (EPS) increased to ₹5.93 from ₹5.19 a year earlier.

However, the sequential comparison was softer. PAT declined 27% from ₹814 crore reported in Q4 FY25. The quarter’s numbers underline a common seasonality in insurance premium flows, where Q4 can be elevated, and also highlight the company’s dependence on renewal collections for stability in earnings.

Premium income: renewal premiums remained the core driver

Net premium income for Q1 FY26 came in at ₹17,178.50 crore, up 13.72% year-on-year from ₹15,105.48 crore. Renewals were the key contributor, with renewal premiums rising 23.51% year-on-year to ₹10,546.28 crore.

Sequentially, net premium income fell to ₹17,178 crore from ₹23,861 crore in Q4 FY25. Renewal premiums also dropped quarter-on-quarter by 28% from ₹14,680 crore in Q4 FY25 to ₹10,546 crore in Q1 FY26, even though they grew from ₹8,539 crore in Q1 FY25.

Gross written premium (GWP) for the quarter was reported at ₹17,810 crore, up 14% from ₹15,570 crore a year earlier. The company also reported gross premium income of ₹17,803.89 crore for Q1 FY26 compared with ₹15,572.10 crore in Q1 FY25.

New business, first-year premium, and single premium mix

SBI Life reported new business premium (NBP) of ₹7,270 crore in Q1 FY26, compared with ₹7,030 crore in Q1 FY25. In individual rated business, the company reported an individual rated premium of ₹3,470 crore and said it held a 22.3% share of the private market in Q1 FY26.

First-year premium increased 12.49% year-on-year to ₹3,539.47 crore, compared with ₹3,146.40 crore in Q1 FY25. Sequentially, first-year premium was lower than ₹4,859 crore in Q4 FY25.

Single premium declined 4.08% year-on-year to ₹3,728.14 crore, compared with ₹3,886.90 crore in Q1 FY25. It was also below ₹4,463 crore in Q4 FY25.

Value of New Business and APE indicators

The value of new business (VNB or VoNB) rose 12% year-on-year to ₹1,090 crore. VNB margin improved to 27.4% from 26.8% in Q1 FY25, a gain of around 60 basis points.

Annualised Premium Equivalent (APE) increased 9% year-on-year to ₹3,970 crore (also reported as ₹3,971 crore), compared with ₹3,640 crore in Q1 FY25.

Persistency, solvency, and business quality metrics

SBI Life reported improvement in persistency, with the 13th-month persistency ratio at 87.12% in Q1 FY26 versus 86.54% a year earlier. The 61st-month persistency ratio improved to 62.8% from 57.79%.

The solvency ratio moderated slightly to 1.96 from 2.01 in the year-ago quarter. The company also highlighted a “robust solvency ratio of 1.96” in its key takeaways.

AUM, embedded value, and investment income

Assets under management (AUM) rose 15% year-on-year to about ₹4,76,000 crore (also cited as around ₹4.8 lakh crore). The company noted a debt-equity mix of 60:40, with about 94% of debt investments allocated to AAA-rated and sovereign instruments.

Indian embedded value (IEV) was reported at ₹74,260 crore as of June 30, 2025, up 20% year-on-year. Total income from investments, including policyholder and shareholder accounts, rose to ₹2,445.3 crore from ₹2,257 crore in Q1 FY25. Income from the shareholder account increased to ₹296.9 crore from ₹268.6 crore.

Cost ratios and management expenses

On cost efficiency, the total cost ratio for Q1 FY26 stood at 10.8%, compared with 10.5% in Q1 FY25. Commission ratio was 4.4% for both Q1 FY26 and Q1 FY25. Operating expense ratio was 6.3% in Q1 FY26 compared with 6.1% a year earlier.

Management expenses (EoM) increased 16.75% year-on-year to ₹1,915.17 crore from ₹1,640.36 crore.

Dividend and stock market reaction

SBI Life declared an interim dividend of ₹2.70 per share.

In market trading referenced alongside the results, SBI Life shares closed at ₹1,814.40 on the BSE, up 0.31% from the previous close of ₹1,808.75.

Key numbers at a glance (Q1 FY26)

Why investors tracked renewals and margins this quarter

The results put the spotlight on renewal premiums as a stabilising factor for profitability. The year-on-year rise in renewal premium and the improvement in persistency ratios are consistent with the company’s stated focus on business quality and retention.

At the same time, the sequential decline in PAT and net premium income shows that quarter-to-quarter comparisons need context. The premium mix also mattered, with single premium down year-on-year while first-year premium rose, and VNB growth supported by a higher VNB margin.

What to watch next

Investors are likely to monitor whether the company sustains persistency improvements and keeps cost ratios stable, given the increase in management expenses and the slightly lower solvency ratio. The next quarters will also show whether the sequential softness in premium collections normalises as the fiscal year progresses.

Conclusion

SBI Life’s Q1 FY26 performance combined double-digit year-on-year growth in profit and premium income with weaker sequential trends. The company’s update highlighted renewal-driven growth, improved VNB margin, stronger persistency, and a declared interim dividend of ₹2.70 per share.