HDFC Life Insurance Limited Q1FY26 Result Analysis

Established in 2000, HDFC Life is one of a leading long-term life insurance solutions provider in India, offering a range of individual and group insurance solutions that meet various customer needs such as Protection, Pension, Savings, Investment, Annuity and Health. The Company has over 70 products (individual and group products) including optional riders in its portfolio, catering to a diverse range of customer needs. HDFC Life continues to benefit from its increased presence across the country, having a wide reach with branches and additional distribution touch-points through several new tie-ups and partnerships. The count of distribution partnerships is over 500, comprising banks, NBFCs, MFIs, SFBs, brokers, new ecosystem partners amongst other.

Result Analysis:  HDFC Life Insurance Limited  (CMP: Rs. 756)

Result Update: Q1FY26

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Financial Performance:

Shareholding Pattern:

Particulars (In %)	Q4FY25	Q4FY24
Promoter	50.32	50.37
FIIs	25.26	30.37
DIIs	14.10	7.94
Public and Other	10.32	11.33

Management Commentary:

• Despite a 16% shift from non-par to par products, margins remained stable at 25.1%, aided by improved product-level profitability, rider attachments, and better protection-linked ULIP sales, offsetting regulatory surrender charge impacts and fixed cost absorption.
• The company has announced a final dividend of Rs. 2.10 per share.
• For FY26, the company expects muted growth in H1 due to a high base and macro uncertainties, with momentum picking up in H2. Margins are expected to remain range-bound between 25% and 27%, supported by an improving product mix, digital initiatives, and industry outperformance.

Outlook:

HDFC Life expects muted growth in H1 FY26 due to a high base effect and ongoing macroeconomic uncertainties but anticipates improved momentum in H2, supported by a robust product mix, digital integration, and sustained distribution strength. The company aims to maintain its VNB margins in the 25–27% range for FY26, driven by balanced product profitability, enhanced protection and rider attachment, and better cost absorption. The company reported an EPS of Rs 2.54 in Q1FY26 and TTM EPS of Rs 8.73 and currently trades at a TTM P/E of 86.6x and P/B of 10.36x.

Results:

 

Source: Company website, EWL Research

 

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