HDFC Life Insurance shares were in focus after global brokerages Jefferies and CLSA maintained their bullish stance on the insurer following its Q2FY26 results, citing better-than-expected margins, stable profitability, and strong protection segment growth. While Jefferies retained a Buy rating with a target price of ₹930, CLSA maintained an Outperform rating with a target price of ₹910, implying an upside potential of 20–22% from the current market price of ₹761.80.
Jefferies on HDFC Life:
Jefferies maintained its Buy rating, highlighting that Q2 value of new business (VNB) stood at ₹10 billion, up 8% year-on-year, slightly ahead of estimates due to better margins. The brokerage noted that annual premium equivalent (APE) growth was soft at 9%, primarily driven by the unit-linked (ULIP) and protection segments.
Jefferies expects growth to pick up from the December quarter as the base normalises and competition in non-participating savings products stabilises after pricing realignments. The firm cautioned that margins may see a temporary dip in 2HFY26 due to the impact of GST changes, but it expects them to normalise from FY27, driven by improving product mix and cost efficiencies.
CLSA on HDFC Life:
CLSA maintained an Outperform rating with a target price of ₹910, stating that HDFC Life’s 1HFY26 VNB margin at 24.5% was 10 basis points above its estimate. The brokerage pointed out that the loss of GST input tax credit for September sales, which accounted for roughly 15% of first-half volumes, led to a 50-basis-point drag on margins.
CLSA said management is taking multiple steps to mitigate this impact and that retail protection growth remained robust, rising 28% year-on-year in the first half, with over 50% growth in September alone following the GST-related adjustments.
Both brokerages see HDFC Life positioned strongly for long-term growth, citing resilient margins, improving product diversification, and a strong recovery in the protection business as key drivers.
Disclaimer: This article is for informational purposes only and not a recommendation to buy or sell any securities. Brokerage views are based on their respective research reports and publicly available information.
