HDFC Life Q1 FY26: Net profit up 14% at Rs 546 crore; premium income climbs 16%

HDFC Life Insurance Company Ltd on Tuesday reported a 14 per cent year-on-year (YoY) rise in standalone net profit for the quarter ended June 30, 2025 (Q1 FY26), at Rs 546 crore compared to Rs 478 crore in the same period last year. Net premium income also rose 16 per cent YoY to Rs 14,466 crore.

The private insurer's Individual Annualised Premium Equivalent (APE) grew 12.5 per cent YoY, translating into a two-year compounded annual growth rate (CAGR) of 21 per cent. Market share rose 70 basis points (bps) at the overall industry level to 12.1 per cent -- the highest ever -- and 40 bps within the private sector to 17.5 per cent.

Value of New Business (VNB) climbed 12.7 per cent YoY to Rs 809 crore with improved new business margins of 25.1 per cent. The company's Assets Under Management (AUM) grew 15 per cent YoY to Rs 3.56 lakh crore, while Embedded Value (EV) reached Rs 58,355 crore. Operating Return on EV stood at 16.3 per cent on a rolling 12-month basis.

Vibha Padalkar, Managing Director and CEO of HDFC Life, said Q1 FY26 began on a strong note, with healthy growth across topline, value of new business and steady margins. "Moreover, over 70 per cent of new customers acquired in Q1 were first-time buyers with HDFC Life," Padalkar added.

HDFC Life's solvency ratio remained strong at 192 per cent, well above the regulatory minimum of 150 per cent.

The quarterly results were declared post-market hours today. Earlier in the day, HDFC Bank shares settled 1.04 per cent lower at Rs 757.