HDFC Life Insurance Company (HDFCLIFE IN) – Q2FY27 Result Update – Margin expansion amid a measured growth outlook – BUY
Published on 16 Oct 2026
Q2FY27 APE grew ~13% YoY led by strong traction in NPAR and annuity segments. Recovery in HDFC Bank channel volumes (+12%) and sustained agency momentum (+13%), supported by deeper branch-level engagement, network expansion and improved productivity, provide visibility on growth. However, the high base of H2FY26 and uncertainty surrounding the proposed commission guidelines could temper the growth trajectory. Accordingly, we marginally revise our APE growth estimates to 13%/ 14% for FY27/FY28E. Q2 VNB margin expanded by 39bps YoY to 24.5%. We expect VNB margin to expand by 30/20bps for FY27/FY28E aided by a rising contribution from margin-accretive products. We roll-forward our valuation to FY29E and value HDFCLIFE using the appraisal value framework at 1.7x FY29E P/EV (vs. 2.0x earlier), arriving at a TP of INR765. Reiterate BUY.
