HDFC Life Shares Decline Amid Concerns Over FY26 Growth Prospects
HDFC Life Insurance Company shares dropped 2.2% on April 21, 2025, reaching an intraday low of ₹704 per share on the BSE. The decline came as analysts expected the company’s annual premium equivalent (APE) growth to moderate to mid-teens in FY26. As of 11:11 AM, HDFC Life’s share price was down 1.52% at ₹709.15 per share. In contrast, the BSE Sensex rose 0.98% to 79,323.24.
Q4FY25 Results Overview
In the fourth quarter ending March 31, 2025, HDFC Life reported a 16% year-on-year growth in standalone net profit to ₹476.54 crore, compared to ₹411.6 crore the previous year. The company’s net premium income increased by 16% to ₹23,765.56 crore, and its annualised Premium Equivalent (APE) rose 9.7% to ₹5,186 crore.
For the full fiscal year 2025, HDFC Life’s total APE grew 16% year-on-year to ₹15,479 crore, while new business premium increased 13% to ₹33,365 crore. Analysts from Motilal Oswal and JM Financial Institutional Securities have maintained a ‘Buy’ rating on the stock with a target price of ₹850.
Analyst Insights
Motilal Oswal trimmed its VNB margin assumptions by 20-30 basis points for FY26/27, estimating a 19% VNB CAGR for HDFC Life over FY25-FY27. JM Financial expects consistent 15% APE growth and 100 basis points margin expansion over FY25-FY27.
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About HDFC Life
HDFC Life Insurance Company Limited is a leading Indian life insurance provider offering various insurance products, including term life, unit-linked insurance plans (ULIPs), endowment policies, and retirement solutions.
