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HDFC Life Insurance Company

HDFCLIFE · Insurance (Life) · INE795G01014

Analyst mean 1.54 · 35 analysts · 68% bullish
₹556.70
Close 2026-07-31 · Balanced risk

Reading the Statements forensic interpretation

What the numbers mean when read together — computed from the filings, not a score.

Operating cash flow backs the profit

Operating cash flow is 1146% of trailing profit — the earnings are converting to cash, not just accruals.

Full read

Last operating cash flow ₹22,625 cr against trailing net profit ₹1,974 cr. A ratio at or above ~0.9 means reported profit is showing up as real cash.

Profit growing with revenue

Both revenue and profit grew over the last year (4.3% and 5.1%) — growth is translating to the bottom line.

Full read

Trailing revenue ₹103,728 cr, trailing profit ₹1,974 cr. Profit growing at least as fast as revenue indicates operating leverage or pricing power.

Generates free cash

Free cash flow is positive and consistent — the business funds itself after capex.

Full read

Latest free cash flow ₹22,341 cr. Negative in only 0 of 12 years. A self-funding business needs less external capital and dilutes less.

Other income is a big part of profit

Other income is 44% of pre-tax profit — a large share of the profit comes from outside the core operating business.

Full read

Trailing other income ₹930 cr against pre-tax profit ₹2,130 cr. High other-income dependence means the headline profit is flattered by treasury, one-offs, or non-operating items rather than the core business.

Borrowing while holding investments

Borrowings rose 226% over two years while the company also carries ₹373,340 cr in investments. Why borrow at interest while parking money elsewhere is a fair question.

Full read

Borrowings moved to ₹3,099 cr from ₹950 cr. Simultaneous large investments can be legitimate treasury management, or a sign that reported cash is not freely available.

Price & Valuation 10-year, split-adjusted

Markers show corporate actions (splits, bonus, dividends). Prices are split-adjusted so the series is continuous.

Valuation & Quality

Valuation
P/E (TTM) 62.9x
P/B 6.21x
P/S 1.16x
PEG 5.34
P/FCF 5.4x
Dividend Yield 0.38%
Leverage
Debt / Equity conservative 0.16
Payout Ratio 22.9%
Returns & Margins
Operating Margin (TTM) 2%
Net Margin (TTM) 1.9%
Return on Equity 10.8%
Return on Assets 0.5%
Implied Growth (Graham) growth the market is pricing in 27.2%
Rule of 40 16.5
Growth 14.6% + Margin 2% — below 40

Ownership & Skin in the Game

Promoter50.54% ▲ 0.33
FII19.26%
DII
Mutual Funds16.57%

Quarterly Financials ₹ cr

MetricSep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Revenue28,49717,30024,19129,46320,65129,42819,89033,759
Expenses28,80716,85223,81429,02420,33629,15719,78233,253
Other Income279-29124164157174428171
Depreciation00000000
Profit before tax-30419500604471445537677
Net Profit435421475548448418497611
EPS2.021.962.212.542.081.942.312.81

Balance Sheet ₹ cr, annual

ItemMar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital2,0212,1132,1492,1512,1532,158
Reserves6,61913,50110,84412,51514,00215,592
Borrowings6006009509502,9503,099
Fixed Assets5856,6059971,5492,1432,716
CWIP14203128109139
Investments173,564216,551238,197291,128334,756373,340
Total Assets179,655230,734248,069302,687349,412390,502
DISCLAIMER: FinMinutes is a financial data and analytics platform, not a SEBI-registered investment adviser. Everything here is for educational and informational purposes. Forensic interpretations are computed from disclosed data and are not recommendations. Do your own due diligence.