HDFC Life Insurance Company (HDFCLIFE) Q4 25/26 earnings summary

Executive summary

• Maintained top three position by individual WRP, with private sector market share at 15.2% for 11 months FY 2026.

• Individual APE grew 7% year-over-year to Rs 146.4 bn, with Value of New Business (VNB) at Rs 40.3 bn, up 2%.

• Over 70% of new customers were first-time buyers; insured over 46 million lives in FY 2026.

• Final dividend of ₹2.10 per equity share recommended for FY 2025-26, subject to shareholder approval.

• Board approved preferential allotment of 14,523,906 equity shares to HDFC Bank Limited, aggregating to ₹1,000 crore.

Financial highlights

• Value of new business (VNB) at INR 4,034 crore, up 2% year-on-year.

• New business margins at 24.2%, down 140 bps from FY 2025 due to GST, surrender value, and fixed cost absorption.

• Profit after tax at INR 1,910 crore; excluding GST and labor code impact, PAT would have grown 16%.

• Embedded value at INR 62,139 crore; operating return on embedded value at 15%.

• Solvency ratio at 177%; board approved raising up to INR 1,000 crore via preferential issue to parent, adding 900 bps to solvency.

Outlook and guidance

• Focus on sustainable, profitable growth through diversified distribution and product innovation.

• GST margin headwind moderating; expected to be neutralized in FY 2027.

• Continued investments in technology, digital, and analytics to drive efficiency and customer experience.

• No specific growth target due to volatility; aim to outpace sector growth and VNB.