Max Financial Services Sees Growth and Margin Gains Amid Product Expansion

Prabhudas Lilladher's research report highlights Max Financial Services' Axis Max Life's positive growth outlook driven by strong protection product sales, new product launches across PAR/NPAR and annuity segments, and expansion through agency, e-commerce, and bancassurance channels. Medium-term growth is expected to be sustained despite potential margin pressure from GST exemption affecting input tax credit availability. The company aims to offset these challenges through product mix rebalancing towards non-participating and protection policies and ongoing cost optimization initiatives, projecting VNB margins of 24.2% in FY26 and 24.6% in FY27. The appraisal value framework valuation assigns a target price of Rs 1,925, reflecting confidence in the company’s growth and margin improvement trajectory, with a retained BUY rating from the analyst.