India's HDFC Life falls on margin pressure due to GST rate cut impact

HDFC Life Insurance

16/10/2025 07:05

** HDFC Life Insurance HDFL.NS drops as much as 4.6% to five-month low of 726 rupees; last down 1.4%

** Life insurer posts higher Q2 profit on strong demand for retail insurance products; margins drop due to impact of GST rate cut

** JM Financial downgrades to "add" from "buy", citing clouded margin outlook on GST cut impact

** Multiple brokerages lower FY26 earnings estimate to reflect unavailability of input tax credit amid GST changes

** Macquarie says co remains most affected from any potential overhaul of bancassurance distribution regulations

** CLSA says high retail sales, cost optimisation initiatives will help mitigate negative impact of GST cuts

** Stock rated "buy" on avg; median PT is 877.5 rupees, per data compiled by LSEG

** YTD, HDFL up 17.7%

 (Reporting by Vivek Kumar M)

 ((VivekKumar.M@thomsonreuters.com;))