HDFC Life Insurance Company (HDFCLIFE IN) – Q3FY26 Result Update – Growth picks up; Q3 margin resilient post GST – BUY
Published on 16 Jan 2026
Q3FY26 APE grew 11% YoY driven by a strong uptick in retail protection post GST rationalization. Sustained momentum in ULIP/ PAR with a recovery in credit life and NPAR is likely to result in overall APE growth of 13%/ 14% for FY26/ FY27E. 9MFY26 VNB margin stood at 24.4% and saw an impact of 110 bps due to GST exemption; however company expects to mitigate it further in Q4. Moreover, strong growth in retail protection, recovery in credit life volume and improved margin profile in ULIP is likely to offset some of the drag. We increase our VNB margin estimates by 20-40 bps for FY26-FY28E and remain confident of delivery on growth. We value HDFC Life using the Appraisal Value framework with a TP of Rs 900 (FY27E P/EV unchanged at 2.6x). Reiterate BUY.
