HDFC Life Q1 net profit rises 14% to ₹546 cr on premium growth

HDFC Life posts 14.2% YoY rise in Q1 net profit, driven by 19% growth in renewal premium and stable VNB margins; solvency ratio improves to 192%

HDFC Life Insurance on Tuesday reported a 14.23 per cent year-on-year (Y-o-Y) increase in net profit to ₹546 crore in the April-June quarter of 2025-26 (Q1FY26), aided by growth in renewal premium. Its net profit stood at ₹478 crore in Q1FY25.

 

The renewal premium of the insurer grew by 19 per cent Y-o-Y to ₹7,603 crore, with 15 per cent growth in back book profits.

 

The net premium income of the insurer grew 15.6 per cent Y-o-Y to ₹14,446.09 crore from ₹12,510 crore in the same period last year. Additionally, the annualized premium equivalent (APE) of the insurer grew 12.53 per cent Y-o-Y to ₹3,225 crore. 

 

APE is the sum of annualised first-year regular premiums plus 10 per cent weighted single premiums. 

Meanwhile, the expenses of the company increased by 19.05 per cent Y-o-Y to ₹3,259 crore in Q1FY26, as compared to ₹2,737 crore in Q1FY25. 

 

Value of new business (VNB) of the insurer grew 12.7 per cent Y-o-Y to ₹809 crore as against ₹718 crore in the corresponding period last year. VNB margin was flat at 25.1 per cent in Q1FY26 compared to 25 per cent in Q1FY25.

 

Vibha Padalkar, managing director & chief executive officer (MD & CEO), HDFC Life, said, “Q1FY26 began on a strong note, with healthy growth across topline, value of new business and steady margins. Individual APE grew by 12.5 per cent Y-o-Y, translating into a robust 2-year compound annual growth rate (CAGR) of 21 per cent. We outperformed both the overall industry and the private sector, resulting in a 70 basis points (bps) increase in our market share at the overall level to 12.1 per cent, a new milestone for us, and a 40 bps gain within the private sector, taking our share to 17.5 per cent.”

 

“Moreover, over 70 per cent of new customers acquired in Q1 were first-time buyers with HDFC Life, underscoring our customer acquisition strength and deepening presence across Tier-I, -II, and -III markets,” Padalkar added.

 

In Q1FY26, the solvency ratio of HDFC Life stood at 192 per cent against 186 per cent in Q1FY25. The 13th month persistency ratio was down to 82.7 per cent as against 87.3 per cent; while the 61st month ratio stood at 61 per cent in the quarter under review as opposed to 59.9 per cent.