HDFC Life Q2 profit up 3% YoY to Rs 447 crore as premium growth sustains

Net profit rises to Rs 447 crore; APE up 8.6% and VNB grows 7.6% even as GST exemption impacts margins and investment income

Buoyed by premium growth, HDFC Life on Wednesday reported a 3.27 per cent year-on-year (Y-o-Y) rise in net profit to ₹447.15 crore during July-September of FY26 (Q2).

 

Its annualised premium equivalent (APE) was up 8.6 per cent to ₹4,188 crore.

 

APE is the sum of annualised first-year regular premiums and 10 per cent of weighted single premiums and single premium top-ups.

 

Value of new business (VNB) increased 7.6 per cent to ₹1,009 crore in Q2 against ₹938 crore in the year-ago period. VNB is the present value of all future profits to shareholders measured at the time of writing the new business contract.  

 

 

The government announced nil goods & services tax (GST) rates on individual health and life insurance effective from September 22.

 

According to the company, profit would have been 15 per cent higher before the impact of GST, while VNB growth would have been 11 per cent up pre-GST impact.

 

The insurer’s VNB margin, a measure of profitability, contracted to 24.09 per cent compared to 24.31 per cent in last year. Pre-GST, the margins would have been at 25 per cent.

 

Investment income of the insurer was down by nearly 87.9 per cent to ₹1,410.05 crore.

 

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Vibha Padlkar, managing director (MD) & chief executive officer (CEO), HDFC Life Insurance, said, “The recent GST revisions are a constructive structural shift aimed at simplifying compliance and improving affordability. We have ensured that the full benefits of the GST exemption are passed on to our customers. With product pricing now more attractive to customers across segments, we expect to see stronger demand over the medium to long term.”

 

“As the external environment evolves, we remain confident of the long-term growth potential of life insurance in India. The recent GST reform, while necessitating some recalibration for industry stakeholders, is a structurally positive step - it makes life insurance products more affordable for customers. We remain optimistic about our growth trajectory for H2, with sustained demand across segments and improving consumer sentiment,” Padalkar added.

 

In Q2 FY26, the solvency ratio of HDFC Life stood at 175 per cent as compared to 181 per cent. The persistency ratio of the insurer for the 13th-month persistency ratio stood at 80.8 per cent as on September 30, 2025 as compared to 82.5 per cent as on September 30, 2024. Meanwhile, the 61st month persistency ratio was at 62.90 per cent in the quarter under review as compared to 67.90 per cent in the year ago period.