HDFC Life Insurance Company, as per Emkay Global Financial’s research report, demonstrated a steady performance in terms of growth and profitability for the fiscal year 2025. The company reported a Retail APE (Annual Premium Equivalent) Year-over-Year (YoY) growth of 18% for FY25, although the Q4FY25 growth moderated to 9.7%. The Value of New Business (VNB) margin stood at 25.6% for FY25, with a VNB growth of 13% YoY. These results were achieved despite headwinds from the implementation of new surrender regulations and a decline in the Microfinance Institution (MFI)-linked Credit Life segment.
The management of HDFC Life Insurance remains optimistic about doubling key performance metrics over the next four years. To achieve this goal, the company continues to invest in capability building and driving innovation, despite intermittent short-term volatilities due to challenging macroeconomic conditions and regulatory changes.
Emkay Global Financial has marginally adjusted its FY26-27 estimates to account for Q4 developments and future guidance. This adjustment has resulted in a broadly unchanged VNB and Embedded Value (EV), with a variation of around +/-1%.
The investment community is advised to maintain a BUY stance on HDFC Life Insurance stock, with an unchanged target price of Rs775 for March 2026. This target price implies a FY27E Price-to-Embedded Value (P/EV) ratio of 2.2x.
It is essential for investors to consult certified experts before making any investment decisions, as the views expressed by investment experts and broking houses are their own and not those of the publication or its management.
