HDFC Life Q1 Results: Net profit rises 14.5% to ₹546 crore, market share rises to 12.1%, a new high

HDFC Life Q4 Results: HDFC Life announced healthy results for the quarter ended June 2025 today, July 15. The company’s consolidated net profit rose 14.5 percent to ₹546 crore in Q1FY26 as against ₹477 crore in the same period last year. Sequentially, the profit jumped 14.7 percent from ₹476 crore in the December quarter. 

The company’s net premium income rose 16 percent at ₹14,466 crore versus ₹12,510 crore posted in the year-ago period.

Market Share At New High

In terms of market positioning, the company outperformed both the overall insurance industry and the private sector. This translated into a 70 basis point increase in its overall market share, taking it to 12.1 percent—a new high for the company. Within the private sector space, the company gained 40 basis points in market share, reaching 17.5 percent, underscoring its competitive edge and growing customer trust.

Other highlights

The company delivered a strong performance in the first quarter of FY26, reflecting consistent growth and operational resilience. Individual Annualized Premium Equivalent (APE) registered a year-on-year rise of 12.5 percent, supported by sustained customer demand and deeper market penetration. On a two-year basis, the APE grew at a compound annual growth rate (CAGR) of 21 percent, reinforcing the company’s momentum in building a stable premium base.

Value of New Business (VNB) stood at ₹809 crore in Q1 FY26, marking a 12.7 percent increase over the same period last year. Over a two-year horizon, the VNB reported a CAGR of 15 percent, supported by enhanced product mix and distribution efficiency. New business margins also improved, touching 25.1 percent during the quarter, indicating better profitability per policy sold.

The company’s asset base continued to expand, with Assets under Management (AUM) reaching ₹3,55,897 crore as on June 30, 2025. This represents a healthy year-on-year growth of 15 percent. The sustained increase in AUM reflects both robust inflows and solid investment performance across its portfolios.

Furthermore, the Embedded Value (EV) rose to ₹58,355 crore, supported by operational performance and strategic execution. The operating Return on Embedded Value (RoEV) for the trailing twelve months stood at a healthy 16.3 percent, reinforcing the company’s ability to generate long-term shareholder value through disciplined capital allocation and sustainable growth strategies.

Management Commentary

Vibha Padalkar, Managing Director and CEO of HDFC Life, said the company began FY26 on a strong footing, reporting “healthy growth across topline, value of new business, and steady margins.” Individual Annualized Premium Equivalent (APE) rose 12.5 percent year-on-year, with a robust two-year CAGR of 21 percent.

Padalkar noted that HDFC Life outperformed both the overall industry and the private sector, gaining 70 basis points in overall market share to 12.1 percent and 40 basis points in the private space to 17.5 percent. “Over 70% of new customers acquired in Q1 were first-time buyers,” she added, highlighting growth across Tier 1, 2, and 3 cities. She also shared that MSCI upgraded HDFC Life’s ESG rating from ‘A’ to ‘AA’, placing it among the highest-rated insurers in India and the region.

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