Motilal Oswal Recommends 'BUY' on Niva Bupa with INR 92 Target Price

• Niva Bupa reported 28% YoY growth in Net Earned Premium (NEP) to INR 14.5 billion in 3QFY26, and 22% YoY growth to INR 41 billion for 9MFY26.
• The loss ratio increased by 720 basis points YoY to 72.3% in 3QFY26.
• Operating expense ratio was 17.9%, with a 34% YoY growth in operating expenses, including a one-time labor code impact of approximately INR 200 million.
• Commission ratio improved to 18% due to the passing of GST impact on distributors.
• Motilal Oswal cut FY27/28 PAT estimates by 4%/13% due to increased claims ratio, but reiterates a 'BUY' recommendation with a target price of INR 92.

Why It Matters: Motilal Oswal maintains a 'BUY' rating for Niva Bupa, setting a target price of INR 92 despite revised PAT estimates.