Analysts See Growth Potential in HDFC Life, ICICI Prudential Stocks Following Q1 Results

Analysts see gains in HDFC Life and ICICI Prudential stocks after Q1 results. HDFC Life reported a 13% YoY increase in APE to ₹3,230 crore, while ICICI Prudential reported a 5% YoY decline in new business APE to ₹1,860 crore. HDFC Life's VNB margin was 23.4%, up 30bps YoY, while ICICI Prudential's VNB margin was 24.5%, up 50bps YoY.

Title: Analysts See Gains in HDFC Life and ICICI Prudential Stocks After Q1 Results

Analysts have expressed optimism regarding the performance of HDFC Life and ICICI Prudential stocks following their respective Q1 results. HDFC Life reported a 13% year-on-year (YoY) increase in Annualised Premium Equivalent (APE) to ₹3,230 crore, while ICICI Prudential experienced a 5% YoY decline in new business APE to ₹1,860 crore. Both companies demonstrated improvements in their Value of New Business (VNB) margins.

HDFC Life Insurance, a subsidiary of HDFC Bank, reported a 14% YoY increase in net profit to ₹546 crore for the first quarter of FY26, driven by a 16% rise in net premium income. The company's Individual APE grew by 12.5% YoY, boosting its market share to 12.1% overall and 17.5% within the private sector [1]. The company's VNB margin was 23.4%, up 30 basis points (bps) YoY [1].

ICICI Prudential Life Insurance, on the other hand, reported a 34% YoY rise in net profit to ₹302 crore, driven by lower new business strain and higher investment income. The company's net premium income grew by nearly 8% YoY to ₹8,503 crore. However, the annualised premium equivalent (APE) slipped 5% YoY to ₹1,864 crore. ICICI Prudential's VNB margin was 24.5%, up 50 bps YoY [3].

Analysts at Centrum Broking trimmed their APE growth estimates by 2% for 2025-26 and 3% for 2026-27, citing a muted first quarter. Antique Stock Broking lowered its APE estimates by 2% for FY26-27, while Nuvama Institutional Equities retained its 'Buy' rating and raised its target price to ₹770 from ₹760 [3].

Despite the mixed outlook, both companies have shown resilience and strategic growth. HDFC Life's strong performance in market share and VNB margin, coupled with ICICI Prudential's robust profit growth, have analysts bullish on their future prospects.

References:
1. [1] https://m.economictimes.com/markets/stocks/earnings/hdfc-life-q1-results-standalone-profit-rises-14-yoy-to-rs-546-crore-net-premium-income-grows-16/articleshow/122502983.cms
2. [2] https://upstox.com/news/market-news/earnings/hdfc-life-insurance-net-profit-rises-14-4-to-546-crore-total-ape-at-3-225-crore/article-178116/
3. [3] https://www.business-standard.com/markets/news/icici-prudential-shares-drop-3-per-cent-as-analysts-cut-ape-estimates-post-q1-125071600230_1.html