Given improving prospects, rerating in ICICI Prudential stock is possible

ICICI Prudential (IPRU) reported Value of New Business (VNB) of ₹620 crore in Q3FY26, up about 19 per cent year-onyear (Yo-Y).

- DEVANGSHU DATTA

Margin was 24.4 per cent, flat quarter-on-quarter (Q-o-Q), and up 320bps Yo-Y.

Growth was soft in December, but still the annualised premium equivalent (APE) growth was at 10 per cent YoY, after 3 quarters of decline. Growth could hit 25 per cent in Q4, and FY27 and FY28 may register mid-teens growth. Margin may sustain at 24.5 per cent for FY26, and improve by 50bps in FY27 if VNB grows at 16 per cent.

IPRU recorded 10 per cent growth in individual APE in Q3FY26, which is a contraction of 2 per cent for the first nine-month period of FY26 (9MFY26). Group APE grew at over 20 per cent in the first half, but contracted by 50 per cent in Q3. The VNB margin was held steady with 41 per cent growth in retail protection. Group protection growth was only 5 per cent. Annuity APE dipped by 50 per cent Yo-Y and a Q4 rebound is likely. This was impressive given GST 2.0 and likely ₹11 crore impact of the Wage Code.