Synopsis: Max Financial gains after robust Q3 performance; Jefferies reiterates Buy with 23 percent upside, backed by strong premium growth, improved margins, and solid distribution momentum.
The share of this company, which is primarily engaged in growing and nurturing business investments and providing management advisory services to Indian group companies are in focus after brokerage gives a 23 percent upside.
With the market capitalization of Rs 62,641 crore, Max Financial Services Ltd’s shares on Thursday made a day high of Rs 1,816.95 per share, up by 4.8 percent from its previous day’s closing price of Rs 1,816.95 per share. The share trades at an expensive P/E of 434x, way higher than the industry P/E of 46.1x.
Result Highlights
QoQ View: The revenue from operations grew by 45 percent to Rs 14,259 crore in Q3 FY26 from Rs 9,792 crore in Q2 FY26, and PBT grew by 694 percent to Rs 50.06 crore in Q3 FY26 from Rs 6.30 crore in Q2 FY26. Accompanied by a net profit growth of 663 percent to Rs 44.8 crore in Q3 FY26 from Rs 5.87 crore in Q2 FY26.
YoY View: The revenue from operations grew by 60 percent to Rs 14,259 crore in Q3 FY26 from Rs 9,792 crore in Q3 FY25, and PBT declined by 38 percent to Rs 50.06 crore in Q3 FY26 from Rs 80.94 crore in Q3 FY25. Accompanied by a net profit that fell by 35 percent to Rs 44.8 crore in Q3 FY26 from Rs 69.8 crore in Q3 FY25, resulting in an EPS of Rs 2.28 per share in Q3 FY26.
Business highlights: In 9M FY26, Axis Max Life delivered robust growth, with Renewal Premium rising 17 percent to Rs 15,551 crore and Gross Written Premium up 18 percent to Rs 25,195 crore. The company issued 638,000 policies, an 18 percent volume increase, while AUM grew 12 percent to Rs 1,92,688 crore, strengthening its financial position and market presence.
Followed by, Axis Max Life delivered strong value creation, with the value of new business rising 30 percent to Rs 1,633 crore and margins improving to 23.6 percent. Embedded Value grew 16 percent YoY to Rs 28,110 crore, reflecting robust profitability, healthy new business growth, and a significant enhancement in the insurer’s long-term shareholder value.
Brokerage View
Jefferies has assigned a “Buy” rating to Max Financial with a target price of Rs 2,130, indicating a potential upside of 23 percent from current market levels. The brokerage remains constructive on the stock, citing improving fundamentals and sector tailwinds supporting future earnings growth.
The upside is largely supported by strong performance at Axis Life, which delivered a solid Q3 driven by improved margins and a higher contribution from ULIP and retail protection products. A better product mix and disciplined execution have strengthened profitability and reinforced confidence in sustained value creation.
Although the 13-month persistency ratio declined by 100 to 400 basis points year-on-year, the bancassurance ratio improved by a similar margin, indicating enhanced distribution efficiency. Jefferies continues to prefer VNBA within the insurance space, reflecting confidence in long-term growth visibility and improving operating metrics.
About the Company
Max Financial Services Limited is part of India’s leading business conglomerate – the Max Group. The company is primarily engaged in growing and nurturing business investments and providing management advisory services to Indian group companies. It owns and actively manages an 81.83 percent majority stake in Max Life Insurance, India’s largest non-bank life insurer and 4th largest private life insurance company.
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