Shares of Max Financial Services rose sharply following its stronger-than-expected June quarter results, driven by improved product mix and lower costs, with analysts maintaining a bullish outlook and setting a higher target price.
Max Financial Services shares rose on Friday after the life insurer reported a stronger-than-expected June quarter, with improved product mix and lower costs helping support earnings. The stock traded higher in Mumbai in early dealings and briefly touched an intraday peak after investors digested the latest results and a bullish call from Motilal Oswal Financial Services.
According to the company’s regulatory filing, consolidated net profit rose 37% year on year to Rs 96 crore in the quarter ended June. Total income increased to Rs 14,977 crore from Rs 12,825 crore a year earlier, while expenses also climbed. Separately, market data compiled by Livemint showed operating profit more than tripling to Rs 130.08 crore and net profit rising 122.22% to Rs 69.64 crore on a different accounting basis, underlining the strength of the underlying operating trend.
Motilal Oswal said the business continued to post better-than-expected annual premium equivalent growth, supported by protection and annuity sales, new non-linked products and a wider margin profile. The brokerage said the proprietary channel remained a key growth driver across offline and online business, while bancassurance also improved through non-Axis partnerships and a better run rate at Axis Bank. It reiterated a Buy rating and set a target price of Rs 1,860, saying it had raised its margin assumptions for fiscal 2027 and 2028.
The stock has been volatile over the past few months, hitting a 52-week high of Rs 1,891.35 on February 23 and a low of Rs 1,408.05 on April 6. StockAnalysis data shows analysts remain broadly upbeat, with an average Strong Buy rating and a 12-month target of Rs 2,065. Even so, the shares are still slightly lower over the past year despite a 46% gain over two years.
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