Broker’s call: HDFC Life Insurance (Buy)

Target: ₹715

CMP: ₹563.55

Gross written premium rose 15 per cent y-o-y to ₹17,168 crores, driven by a robust 19 per cent y-o-y growth in renewal premium collections to ₹9,020 crore. The company reported a 7 per cent y-o-y growth in Individual APE at ₹2,969 crore, while Total APE grew 9 per cent y-o-y to ₹3,515 crore. This growth was underpinned by strong customer acquisition, with the number of policies growing in double digits and outpacing the industry

New business margin remained stable at 25 per cent, slightly moderating from 25.1 per cent y-o-y, However, q-o-q, it was up 100 bps q-o-q. If the residual GST impact of approximately 60 basis points is excluded, the underlying NBM actually expanded to 25.6 per cent.

The company’s product mix remained well-diversified, with ULIPs constituting 44 per cent of individual APE and non-PAR savings improving to 22 per cent.

For FY27, management is prioritising top-line and VNB growth over margin expansion, intentionally keeping margins rangebound at about 25 per cent by reinvesting gains back into the business. Supported by deep penetration in Tier 2/3 markets and an expected volume recovery in the bancassurance channel (esp. from HDFC Bank), the long-term growth

trajectory remains highly visible. We fine tune our estimates and value the stock at around 1.9xFY28 EV to arrive at revised target price of ₹715 and maintain Buy rating.

Published on July 17, 2026