HDFC Life Insurance Company (HDFCLIFE IN) – Q1FY27 Result Update – Steady growth; margin outlook stays range-bound – BUY
Published on 16 Jul 2026
Q1FY27 APE saw a mild growth of ~9% YoY led by ULIP, NPAR and protection segments. While banca growth remained subdued due to lower HDFCB channel volumes, improvement in counter-share across other banking partners and easing competitive intensity provides visibility for growth recovery. We build an APE growth of 12%/ 14% for FY27/ FY28E. Q1 VNB margin remained flat YoY at 25.0% despite a residual GST impact. We expect VNB margin to remain rangebound at 24.5% /24.8% in FY27/28E as the company continues to prioritize growth and the impact of GST neutralizes. We value HDFCLIFE using the appraisal value framework with a TP of INR 765 (FY28E P/EV unchanged at 2.0x). Retain BUY.
