HDFC Life Q2 Review — GST Impact Emerges As A Margin Monitorable, Says Yes Securities Maintaining 'Add'

Total APE growth in Q2 FY26 was 8.6% YoY within which Individual APE growth in Q2 FY26 was 8.7% YoY. HDFC Life is sticking to its earlier guidance of overall growth being in the early teens..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Yes Securities Report.We maintain an ‘Add’ rating on HDFC Life Insurance Company Ltd. with a revised price target of Rs 870..Calculated VNB margin for Q2 FY26 was 24.1%, down -22 bps QoQ and -99 bps YoY. The gross impact on VNB margin due to a 10% rise in acquisition cost is 3%. Management stated that they would be having conversations with distributors both from a perspective of commission as well a product mix with a margin backdrop. The impact will be mitigated over two-three quarter and the attempt would be to wrap it up in 2 quarters. The company is capacitised for 16-18% but is growing at 10% and this may continue to be a drag on margin. Par mix has gone up but is close to company average margin whereas one fourth of ULIP business happens at higher sum assured which more than makes up. Non-Par mix has gone down due to pricing discipline. Management expects a pick of Non-Par business in the second half and Non-Par margin will be better due to increase in yield at the longer end of curve..Click on the attachment to read the full report:.HDFC Life Q2 Results: Profit Rises 3%, Net Premium Income Up Nearly 14%.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

HDFC Life Q2 Review — GST Impact Emerges As A Margin Monitorable, Says Yes Securities Maintaining 'Add'

Yes Securities maintain an ‘Add’ rating on HDFC Life Insurance Company with a revised price target of Rs 870.

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