Motilal Oswal's research report on HDFC Life Insurance
HDFC Life Insurance (HDFCLIFE) reported APE of INR32.3b (in-line) in 1QFY26, up 13% YoY, driven by 13%/12% YoY growth in individual/group APE. VNB grew 13% YoY to INR8.1b in 1QFY26 (5% below our estimates). Margins stood at 25.1%, a 90bp decline from our estimate of 26%, primarily due to the shift in the product mix towards lower yield offerings. For 1QFY26, HDFCLIFE reported a 14% YoY growth in shareholders’ PAT to INR 5.5b, (11% beat), supported by a 15% increase in back-book profits. VNB margins are expected to remain range-bound due to slower growth and the reinvestment of surplus into distribution expansion and fixed cost absorption.
Outlook
We trim VNB margin assumptions by 50bp each for FY26/FY27, factoring in 1QFY26 performance and guidance of flattish margins. We reiterate BUY with a TP of INR 910 (2.6x FY27E EV).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
