HDFC Life reported strong Q1 growth across key metrics, but analysts noted that technical weaknesses and margin pressure could limit near-term upside.

HDFC Life Insurance shares edged up following the company’s first quarter (Q1) earnings, which showed steady growth across key financial and operating metrics. 

At the time of writing, shares of HDFC Life Insurance were trading at ₹760.40, up 0.5% on the day.

The insurer reported a 14.4% year-on-year increase in net profit to ₹546 crore and a 12.5% rise in individual annual premium equivalent (APE) to ₹3,225 crore, while net premium income increased by around 16% to nearly ₹14,875 crore. 

Value of New Business (VNB) grew 13% to ₹809 crore, with VNB margins holding steady at 25.1%. 

Assets under management rose 15% to ₹3.56 lakh crore, while embedded value increased to ₹58,355 crore with a return on EV of 16.3%.

SEBI-registered firm A&Y Market Research highlighted record market share gains—12.1% overall and 17.5% in the private space, alongside strong policyholder persistence. 

The solvency ratio stood at a healthy 192%, well above the IRDAI-mandated minimum.

Managing Director & CEO Vibha Padalkar called it a strong start to FY26, noting that over 70% of new customers were first-time buyers, especially from Tier 2 and Tier 3 cities. She cautioned that the first half (H1) growth may moderate due to a high base effect, but expressed confidence in a rebound in the second half (H2).

From a technical perspective, A&Y Market Research noted a failed breakout above ₹775, with current support seen in the ₹732–₹750 zone. 

They flagged ₹755 as a key level for potential upside, and ₹664–₹650 as the next major support zone if current levels break.

Meanwhile, SEBI-registered research analyst Vijay Kumar Gupta turned neutral-to-cautious in the short term, citing early signs of technical weakness. 

Gupta observed that the stock is trading below both the Tenkan-Sen and Kijun-Sen on the Ichimoku chart and that a breakdown volume candle on earnings day could indicate sentiment fatigue. 

Commodity Channel Index (CCI) was near oversold territory, but with no clear reversal signal yet. On-balance volume data suggested mild distribution.

Fundamentally, Gupta noted that while the 14.4% profit rise was solid, it fell short of market expectations. He also flagged rising pressure on margins due to product repricing, higher protection claims, and cost inflation. 

He added that the pace of embedded value growth lagged behind peers such as SBI Life. Gupta also warned of a possible rotation of investor flows toward banks and PSU insurers.

He identified key levels to watch: ₹755 and ₹745 as support zones, and resistance between ₹775 and ₹780. A breakdown below ₹755, he said, could bring further supply pressure.

The stock has risen 23.2% so far in 2025.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<