HDFC Life Insurance Company (HDFCLIFE IN) – Management Meet Update – Set for steady growth and margin recovery – BUY
Published on 04 Feb 2026
We met the management of HDFCLIFE to understand growth trends, margin outlook, and the evolving regulatory landscape. The company highlighted sustained strength in retail protection demand with volumes seeing a sharp uptick post the GST rate cut, while ULIP traction remains healthy and NPAR is seeing a gradual improvement. The management indicated an impact of ~110bps on 9MFY26 margin due to the loss of Input Tax Credit and expects to mitigate it in Q4. HDFCLIFE remains focused on driving RoEV of 16%-18% with a target to double EV over the next 4-5 years. Protection-led growth, improving rider attachment and cost discipline remain key levers to support VNB growth, despite near-term margin pressure. Retain ‘BUY’ with TP of Rs900 (2.6x FY27E P/ABV).
