Motilal Oswal has issued a buy rating on Niva Bupa with a target price of ₹103 in its research report dated July 30, 2026. According to the brokerage's analysis, the company has demonstrated strong operational performance across key metrics in the first quarter of FY27.
The insurance company reported robust growth in its first quarter results, with insurance revenue growing 29% year-on-year to ₹22.7 billion, which was in line with expectations. Gross premium increased 32% YoY to ₹21.5 billion, while retail health GWP grew 47% YoY to ₹16.1 billion. The combined insurance service ratio improved to 100.2%, up 300 basis points year-on-year, though it was slightly below the estimated 103.5%.
The company's profit after tax (PAT) surged 93% YoY to ₹1.4 billion, significantly exceeding the estimated ₹985 million. Return on equity (RoE) improved to 3.7% compared to 2.1% in the same quarter last year. Insurance service result reached ₹1 billion versus ₹76 million in 1QFY26, though it was slightly below the estimated ₹110 million.
According to Motilal Oswal's report, Niva Bupa has transitioned to Ind AS accounting from this quarter, and the brokerage has prepared its estimates accordingly. The valuation is based on 30x FY28E IFRS PAT, arriving at the target price of ₹103. The company's investment income of ₹2 billion was 10% below estimates but grew 21% year-on-year.
