India's HDFC Life Insurance drops to 8‑ month low after marginal quarterly profit rise, cost surge

HDFC Life Insurance

16/01/2026 04:21

** Shares of HDFC Life Insurance HDFL.NS fall 2.1% to 727.4 rupees, their lowest level since May 2025

** The insurer's third-quarter net profit up marginally 1.4% to 4.21 billion rupees ($46.62 million), as a higher premium collection driven by tax cuts more than made up for an increase in expenses

** Co's management expenses rose 30% to 45.33 billion rupees driven by higher employee-related costs and operating expenses

** Jefferies cuts the value of new business (VNB) by 2-3%, factoring lower premium growth of 14% over FY26-28 and trims PT to 900 rupees from 930 rupees but maintains "buy" rating

** Emkay cuts FY26-28 APE estimates by ~1%, while keeping VNB margin estimates unchanged to weave in the Q3 developments

** BOB Capital sees a short-term impact from GST implementation and ITC disallowance

** Thirty-five analysts have a "buy" rating on avg; median PT is 887.50 rupees, according to data compiled by LSEG

** YTD, HDFL down ~3%

(Reporting by Urvi Dugar in Bengaluru)

((UrviManoj.Dugar@thomsonreuters.com;))