The shares of the large-cap company, which specializes in providing a wide range of long-term life insurance solutions to both individuals and groups, declined by up to 5 percent following their Q2 results. In this article, we will explore whether it’s the right time to buy, sell, or hold this stock.
With a market capitalization of 1,60,218.78 Crores on Thursday, the shares of HDFC Life Insurance Company Ltd declined by upto 4.6 percent, reaching a low of Rs. 726.15 compared to its previous close of Rs. 761.25.
What Happened
HDFC Life Insurance Company Ltd, engaged in providing a wide range of long-term life insurance solutions to both individuals and groups, has announced its Q2 results as follows.
Its Net premium income rose by 13.5 percent YoY from Rs. 16,613.72 Crores in Q2FY25 to Rs. 18,871.23 Crores in Q2FY26, and rose by 30 percent QoQ from Rs. 14,539.42 Crores in Q1FY26 to Rs. 18,871.23 Crores in Q2FY26.
Its profit increased by 3 percent YoY from Rs. 435 Crores in Q2FY25 to Rs. 448 Crores in Q2FY26, and declined by 18 percent QoQ from Rs. 548 Crores in Q1FY26 to Rs. 448 Crores in Q2FY26.
HDFC Life’s Assets Under Management (AUM) is Rs. 5 lakh crore, rising 11 percent year-on-year to Rs 3,59,999 crore. The insurer’s Embedded Value (EV) climbed 14 percent to Rs 59,540 crore, while the Operating Return on EV (RoEV) stood at 15.8 percent on a rolling 12-month basis.
Is It Time to Buy, Sell, or Hold?
From the top brokerage point of view, let’s assess whether it is the right time to buy, sell, or hold the stock.
Jefferies
They have maintained a ‘Buy’ rating on the stock, setting a target price of Rs 930 per share, indicating an upside potential of over 22% from the stock’s previous closing price. The brokerage noted that Q2 VNB increased by 8% YoY, slightly surpassing expectations, with improved margins. Growth is expected to pick up from the December quarter as the base normalizes, though margins may dip slightly in H2FY26 due to the GST impact, before normalizing in FY27.
CLSA
It has maintained an ‘Outperform’ rating on the stock, setting a target price of Rs 910 per share, which suggests an upside potential of around 20 percent from the stock’s last closing price.
PL Capital
It also held a ‘Buy’ call on the stock, with a target price of Rs 900 per share. This implies an upside potential of more than 18 percent from the stock’s previous closing price. The domestic brokerage expects FY26E margin to trend lower at 24 percent.
However, strong growth in retail protection volume and improved margin profile in ULIP is likely to offset some of the drag, and it is also mentioned that VNB margin estimates for FY26/FY27E, we remain confident of delivery on growth.
Prabhudas Lilladher
Prabhudas Lilladher is bullish on HDFC Life Insurance Company, has recommended a buy rating on the stock with a target price of Rs 900, with a 20 percent upside potential in its research report dated October 16, 2025.
Company Overview & Others
HDFC Life Insurance Company Ltd is a leading Indian life insurer established in 2000 as a joint venture between HDFC Ltd. and abrdn plc (formerly Standard Life Aberdeen). It offers a wide range of individual and group life insurance solutions, including protection, pension, savings, and investment plans, through various channels like agents, brokers, banks, and its online platform.
The company offers a comprehensive range of insurance products across categories such as protection, pension, savings, investment, annuity, and health. Its portfolio includes over 60 products and several riders designed to meet diverse financial needs.
HDFC Life operates through a vast network of over 498 branches and more than 300 distribution partners, including banks, NBFCs, microfinance institutions, and small finance banks, providing extensive nationwide coverage.
Written by Sridhar J
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post HDFC Life shares fall 5% post Q2 results; Should you Buy, Sell, or Hold? appeared first on Trade Brains.