HDFC Life and Tata Communications Rise Ahead of Q2 Results

Shares of HDFC Life and Tata Communications gained on October 15, reflecting positive investor sentiment ahead of their Q2 FY26 results for the July-September quarter. Axis Bank, however, traded lower, falling over 1 percent as the private lender prepared to announce its quarterly performance.

Axis Bank Q2 Expectations

Axis Bank shares fell more than 1%, hitting an intraday low of Rs 1,164 as of 10:15 am. Analysts expect the lender to report a decline in both net interest income (NII) and profit, pressured by higher credit costs.

• Net Interest Income (NII): Expected to drop 0.7% YoY to Rs 13,377 crore from Rs 13,480 crore.

• Net Profit: Likely to decline 14% YoY to Rs 5,911 crore from Rs 6,920 crore.

• Loan Growth: CLSA projects an 8% YoY and 3% QoQ expansion in the loan book. Deposits are expected to rise 9.6% YoY and 2.5% QoQ.

• Asset Quality: Motilal Oswal expects the gross NPA ratio to rise to 1.7% from 1.4%, while net NPA may increase to 0.5% from 0.3%.

• Margins: Anticipated contraction of up to 38 basis points YoY due to the RBI repo rate cut and higher credit costs.

Centrum views Axis Bank positively among large banks, noting that the worst may be over in terms of credit costs and loan growth.

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HDFC Life Q2 Expectations

HDFC Life Insurance shares rose over 2% ahead of its results announcement. The company is expected to post steady growth, with key metrics improving:

• Annualized Premium Equivalent (APE): Projected at Rs 4,242 crore in Q2 FY26, up from Rs 3,858 crore in Q2 FY25.

• Value of New Business (VNB): Expected to grow to Rs 1,022 crore from Rs 938 crore a year ago.

• Gross Premium Income: First-year premiums may rise 11% YoY, renewal premiums 15%, and single premiums 11.4% YoY.

• Margins: VNB margin expected to contract slightly by 30 basis points to around 24%, primarily due to the loss of GST input credit.

Emkay notes modest APE growth in H1 FY26 driven by market-linked plans, with some contraction in profit margins for new policies due to product mix shifts. JM Financial expects growth to return to double digits in H2 FY26, led by HDFC Life among life insurers.

Peer ICICI Prudential Life Insurance reported a quarterly profit rise, benefiting from non-market-linked products and lower expenses.

Tata Communications Q2 Preview

Tata Communications shares surged nearly 7% to a 52-week high of Rs 1,999 in morning trading on October 15. By 10:30 am, gains were pared to 1% higher at Rs 1,896.

• Recent Performance: The stock has gained over 12% in the past five days and more than 19% in the past six months, reflecting strong market momentum ahead of results.

Market Sentiment

The share movements indicate investor optimism for HDFC Life and Tata Communications, anticipating steady growth and positive results, while Axis Bank reflects concern over margin pressure and asset quality challenges for the quarter.

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