Highlights

• Multiple brokerages reiterated buy ratings with target prices ranging between ₹840 and ₹930.
• Retail protection premiums grew 42% over 9MFY26, while retail sum assured rose 33%.
• Embedded value reached ₹61,565 crore with operating RoEV at 15.6%.

HDFC Life Insurance Company Ltd (NSE:HDFCLIFE) remained in analyst focus after announcing its financial performance for the nine months ended December 31, 2025. The update highlighted higher protection-led growth, steady market share gains and expansion in embedded value. Following the disclosure, several domestic brokerages reiterated buy recommendations.

Analysts Maintain Buy Ratings

Post the nine-month performance update, multiple brokerage houses reaffirmed their positive stance on HDFC Life. Motilal Oswal Securities set a target price of ₹930 per share, while PhillipCapital (India) assigned a target of ₹915. AMSEC placed its valuation at ₹850, and Ambit Capital issued a target price of ₹840. At the time of reporting on January 16, the stock was trading at ₹733.50 on the NSE, down 1.31% for the day and up 14.36% on a year-on-year basis.

Protection Segment Drives Business Mix

Retail protection continued to expand at a faster pace during the period under review. Retail protection premiums rose 70% year-on-year in the third quarter and 42% over the nine-month period. Retail sum assured increased 55% in Q3 and 33% for the nine months, supported by higher rider attachment and increased sum assured multiples within the ULIP segment.

Market Share and New Business Metrics

HDFC Life reported an 11% year-on-year rise in individual annualised premium equivalent (APE) for 9MFY26, translating into a two-year CAGR of 17%. The insurer added 20 basis points of market share during the period, taking its overall industry share to 10.9%. Value of New Business (VNB) stood at ₹2,773 crore, up 7% year-on-year, with new business margins at 24.4%, broadly in line with the first half of the financial year.

Balance Sheet and Profitability Indicators

Assets under management, including those of HDFC Pension Fund Management, reached ₹5.3 trillion. Embedded value stood at ₹61,565 crore, with an operating return on embedded value of 15.6% on a rolling 12-month basis. Profit after tax increased 7% year-on-year to ₹1,414 crore for 9MFY26. Excluding one-time labour code and GST-related impacts, underlying profit growth for both the quarter and nine-month period was 15%. The solvency ratio remained at 180%, supported by ₹749 crore in subordinated debt raised during the third quarter.

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