Hindalco, SBI Life rally up to 44% so far in 2025; market cap near ₹2 trn

Thus far in the calendar year 2025, Hindalco (up 44%) and SBI Life (up 37%) have outperformed the BSE Sensex, which rallied 7.7%.

Share prices of Hindalco Industries, SBI Life Insurance today

 

Shares of Hindalco Industries (₹859.55) and SBI Life Insurance Company (₹1,928.20) hit their respective 52-week highs, gaining 2 per cent on the BSE in Tuesday’s intra-day trade in an otherwise subdued market. In comparison, the BSE Sensex was down 0.29 per cent at 84,529 at 10:23 AM. 

 

Shares of Hindalco were trading at record highs, while, SBI Life was quoting close to its all-time high of ₹1,935 touched on September 3, 2024.

 

Thus far in the calendar year 2025, Hindalco and SBI Life have outperformed the market by surging 44 per cent and 37 per cent, respectively. The BES benchmark index has rallied 7.7 per cent so far in the year.

 

A sharp rally in these stocks have seen the market capitalisation of Hindalco (₹1.92 trillion) and SBI Life (₹1.93 trillion) inching towards ₹2 trillion.

 

What’s driving SBI Life, Hindalco stock price?

 

SBI Life delivered yet another strong quarter with consistent value of new business (VNB) margin expansion and steady annualised premium equivalent (APE) growth for the quarter ended September 2025 (Q2FY26).

 

Most analysts maintained a ‘Buy’ rating on the SBI Life Insurance stock with price targets in the range of ₹2,200-₹2,320.

 

SBI Life reported a 10 per cent year-on-year (Y-o-Y) rise in new business APE at ₹5,950 crore in Q2FY26, broadly in line with estimates. The VNB grew 14-15 per cent Y-o-Y to ₹1,660 crore, aided by a favourable product mix and margin improvement. The VNB margin for the quarter expanded around 100 basis points (bps) Y-o-Y to 27.9 per cent despite the GST hit, compared with 26.9 per cent a year ago.  ALSO READ | SBI vs SBI Card vs SBI Life: Which SBI group stock can gain the most?

 

Bancassurance remained the key growth driver with a 57 per cent APE contribution, supported by healthy productivity in SBI and RRB channels, whereas agency momentum revived in September aided by 64,000 new agent additions and higher non-par share. With continued focus on non-par and protection growth, expanding banca and agency reach, and strong margin discipline underpin long-term value creation. However, margin trajectory, amid GST cut, remains watchful, ICICI Securities said in a note.

 

SBI Life’s management has reiterated guidance for individual APE growth of around 13–14 per cent for FY26. VNB margins are expected to remain range-bound between 26–28 per cent, with a positive bias supported by a product mix shift toward non-par and protection products, offsetting the impact of GST input tax credit disallowance. The company remains focused on expanding its agency channel and digital sourcing to drive sustainable growth. Analysts at Axis Securities expect SBI Life to deliver a healthy 15 per cent/13 per cent/12 per cent compound annual growth rate (CAGR) in NBP/APE/VNB over FY26–28E.

 

Meanwhile, Hindalco has informed the stock exchanges that it is undertaking extensive restoration efforts at the Novelis plant in Oswego, New York, following the fire incident that occurred on September 16, 2025. The company expects the hot mill to restart by the end of December 2025, followed by a production ramp-up period of 4 to 6 weeks.

 

This is a positive development, given that the Oswego facility contributes around 10 per cent of Novelis’ total output, primarily catering to high-margin automotive shipments. However, ICICI Securities anticipates a temporary impact on operational performance in Q2FY26 and Q3FY26. 

 

Nonetheless, the brokerage firm said they have a long-term positive view on Hindalco supported by strong demand for aluminium and copper metal due to its incremental application in automobile and renewable spaces, strategic capacity expansion at Novelis and Hindalco and controlled leverage on B/S with Debt to Equity at ~0.5.

 

India’s economic trajectory, marked by robust consumption growth and rapid urbanisation, presents an opportunity for the aluminium and copper sector. In the aluminium industry, India’s per capita consumption stands at approximately 3.2 kg, significantly lower than the global average of 12 kg, indicating substantial room for growth. Copper consumption reflects a similar pattern, with India’s per capita consumption at 0.6 kg compared with the global average of 3 kg further highlighting expansion potential in India, Hindalco said in its FY25 annual report.