1. At a Glance
SBI Life just posted a ₹594 Cr profit for Q1 FY26—growing at a comfortable 14%. Assets under management? ₹4.8 lakh crore. Shareholder payout? A generous shrug. It’s the silent tortoise of the insurance race—no drama, steady pace, low yield, and sky-high valuations.
2. Introduction with Hook
Imagine a mutual fund SIP got married to a government bank and their kid grew up to wear a suit, sell insurance, and never offer you discounts. That’s SBI Life—steady, shiny, and slightly overvalued.
- P/E? 72x.
- ROE? 15%.
- Dividend? Barely worth a jalebi.
But hey, they’ve got ₹4.8 lakh Cr in AUM and a 22.3% private life insurance market share. So, yeah, they’re not here to play—they’re here to compound.
3. Business Model (WTF Do They Even Do?)
They basically sell you:
- Protection Plans – For your family, not your portfolio
- ULIPs – Mutual funds in disguise, with charges you’ll ignore
- Annuity Products – For your dad who hates equity
- Group Insurance – So your employer can say “benefits included”
23 individual and 8 group products. They’re like the Netflix of policies—tons of options, no one really understands half of them.
4. Financials Overview
| Metric | Q1 FY26 | YoY Growth |
|---|---|---|
| Revenue | ₹38,996 Cr | +40% |
| PAT | ₹594 Cr | +14% |
| AUM | ₹4.8 Lakh Cr | +15% |
| OPM | 2% | Flat (Still sad) |
“Margins thinner than LIC’s patience during policy maturity claims.”
5. Valuation
Fair Value Range: ₹1,400 – ₹1,750
- P/E Method
TTM PAT = ₹2,488 Cr
At 60x = ₹1,49,280 Cr → FV ~ ₹1,460
At 70x = ₹1,74,160 Cr → FV ~ ₹1,700 - P/B Method
BV = ₹178; Current P/B = 10.1x
Historical fair P/B range = 8x–9.5x → FV = ₹1,420 – ₹1,690
“If you’re buying insurance at 72x earnings, make sure your portfolio’s also insured.”
6. What’s Cooking – News, Triggers, Drama
- Q1 PAT up 14% YoY
- AUM hit ₹4.8 lakh Cr, because compounding loves silence
- MD & CEO Amit Jhingran reappointed till Jan 2027—consistency is key
- SBI’s dominance continues, but no sign of a dividend party
“More action in an LIC rally than SBI Life earnings call.”
7. Balance Sheet
| Item | Mar 2025 (₹ Cr) |
|---|---|
| Equity Capital | 1,002 |
| Reserves | 15,983 |
| Total Liabilities | 4,57,095 |
| Investments | 4,47,467 |
“With zero borrowings and ₹4.5 lakh Cr in liabilities (aka your premiums), this is the poster child of safe leverage.”
8. Cash Flow – Sab Number Game Hai
| FY | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY23 | ₹28,656 Cr | -₹30,203 Cr | -₹415 Cr | -₹1,962 Cr |
| FY24 | ₹29,122 Cr | -₹31,221 Cr | -₹227 Cr | -₹2,327 Cr |
| FY25 | ₹25,547 Cr | -₹21,789 Cr | -₹215 Cr | ₹3,543 Cr |
“Massive cash inflows from operations, but investment activity eats it up like a teenager on cheat day.”
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROE | 15.1% |
| ROCE | 16.9% |
| P/E | 72.3x |
| Dividend Yield | 0.15% |
| CMP/BV | 10.1x |
“ROE’s okay. But P/E? That’s more inflated than your medical bill without insurance.”
10. P&L Breakdown – Show Me the Money
| Year | Revenue | PAT |
|---|---|---|
| FY23 | ₹80,636 Cr | ₹1,721 Cr |
| FY24 | ₹1,31,988 Cr | ₹1,894 Cr |
| FY25 | ₹1,16,888 Cr | ₹2,413 Cr |
“Topline’s growing, but it’s the bottom line that finally decided to bulk up.”
11. Peer Comparison
| Company | Rev (₹ Cr) | PAT (₹ Cr) | P/E | ROE |
|---|---|---|---|---|
| SBI Life | 1,21,231 | 2,488 | 72.3x | 15.1% |
| HDFC Life | 99,451 | 1,880 | 86.8x | 10.8% |
| ICICI Pru | 70,783 | 1,262 | 71.4x | 10.3% |
| LIC | 8,89,970 | 48,320 | 12x | 46% |
“LIC is the bargain uncle at the party. SBI Life? The overpriced cousin with a Rolex and zero interest in dividends.”
12. Miscellaneous – Shareholding, Promoters
- Promoters (SBI): 55.37% (rock steady)
- FIIs: 22.34% (mild drop)
- DIIs: 18.24% (growing nicely)
- Public: 4.05% (still wondering what ULIP stands for)
- Retail holders: 3.5 lakh+ people holding it… mostly in hopes of compounding, not income
“A classic DII darling. Retail tags along for the SIP-style dreams.”
13. EduInvesting Verdict™
SBI Life is the low-beta, high-premium, long-term SIP stock your wealth manager recommends during every downturn. Great metrics, high consistency, but priced like a luxury product.
A safe compounder. But don’t expect party favors (dividends) anytime soon.
Metadata
Written by EduInvesting Team | 24 July 2025
Tags: SBI Life Insurance, Insurance Sector, Q1 FY26, SBI Group, EduInvesting Premium
