HDFC group stocks slip up to 4%; HDFC Life sinks to two-year low

HDFC Life Insurance Company share price movement

 

HDFC Life Insurance Company's share price hit an over two-year low of ₹530.45, falling 4 per cent on the BSE in Tuesday’s intra-day trade. 

 

The stock price of the HDFC Group company quoted at its lowest level since June 2024. It fell below its previous low of ₹543.05 touched on June 11, 2026. Thus far in the calendar year 2026, HDFC Life’s stock price tanked 29 per cent.

 

HDFC Bank (₹738.15) and HDFC Asset Management Company (AMC) (₹2,540), the other two listed HDFC Group stocks were down 2 per cent and 1.3 per cent, respectively. Share price of HDFC Bank traded close to its 52-week low of ₹726.75 touched on April 2, 2026. In comparison, the BSE Sensex was down 0.48 per cent at 78,258 at 02:05 PM.

 

 

Brokerages view on HDFC Life Insurance post Q1 results

 

HDFC Life is among the most dominant players in the Indian life insurance industry with a strong distribution network, parentage, and operating metrics. The company has a balanced product mix with a focus on non-par, protection & annuity business. Industry leading Value of New Business (VNB) margins of 25-26 per cent.

 

HDFC Life reported slower premium growth in the April to June 2026 quarter (Q1FY27), while margins remained largely steady, supported by a favourable product mix. Total Annual Premium Equivalent (APE) increased 9 per cent year-on-year (YoY) to ₹3,515 crore, supported by healthy group business. 

 

Analysts at ICICI Securities believe that most near-term headwinds are largely priced in, while an improvement in growth execution could support a gradual re-rating. Strategy to increase protection mix, higher rider attachment and operating leverage, with traction in business, is seen to drive margins, though the pace could remain gradual. Factoring all, analysts revised the target price for the stock from ₹750 to ₹700, valuing the business at 1.8x FY28E EV.

 

For FY27, management is prioritizing top-line and VNB growth over margin expansion, intentionally keeping margins range bound at 25 per cent by reinvesting gains back into the business. Supported by deep penetration in Tier 2/3 markets and an expected volume recovery in the bancassurance channel (esp. from HDFC Bank), the long-term growth trajectory remains highly visible, said Mirae Asset Sharekhan.

 

The brokerage maintains a 'Buy' rating with a revised price target of ₹715 as long-term growth prospects remain intact as banking channel volumes revive and margins stay stable.

 

HDFC Life reported a 9 per cent YoY growth with continued momentum in agency and non-HDFC bank channels, rising protection and non-par savings contributions, and improving ULIP margins.  Analysts at Motilal Oswal Financial Services expect the growth trajectory to remain stable at 15 per cent for FY26-28E, along with a stable VNB margin, driven by a diversified product mix, rising sum assured (especially in ULIPs), and improving rider attachments. While the loss of ITC (input tax credit) impacted profitability, it is likely to be fully absorbed by 1HFY27, normalizing its VNB margin. The brokerage firm reiterated its 'BUY' rating on the stock with a revised target price of ₹690 (based on 1.8x FY28E EV).

 

Despite strong Q1 results, analysts at JM Financial Institutional Securities remain conscious of macroeconomic situations, which impacted Q4 growth, not to mention persistent noise around distribution reforms in the sector, which can potentially cause a short-term growth disruption.  ======================================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.