HDFC Life shares in focus after Q1 profit jumps 14% YoY to Rs 546 crore; net premium income up 16%

Economic Times

10 hours ago

The net premium income fell sharply by 39% when compared to the Rs 23,766 crore achieved in the January-March quarter of FY25.
Synopsis HDFC Life Insurance Company reported a 14% YoY jump in Q1 FY26 profit to Rs 546 crore and a 16% rise in net premium income. Strong gains in market share, persistency, and new business value reflect solid operational momentum despite a sequential dip in topline. HDFC Life Insurance Company shares are in focus today after the firm reported a 14% year-on-year (YoY) growth in its standalone net profit at Rs 546 crore for the first quarter of fiscal year 2026 (Q1 FY26). This compares to Rs 478 crore posted in the year-ago period.
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The company's net premium income rose 16% to Rs 14,466 crore versus Rs 12,510 crore recorded in the same quarter last year. On a sequential basis, profit after tax (PAT) was 15% higher than the Rs 477 crore reported in Q4 FY25.
However, it's notable that the net premium income fell sharply by 39% when compared to the Rs 23,766 crore achieved in the January-March quarter of FY25.
- Topline Growth: Individual Annualised Premium Equivalent (APE) grew by 12.5% YoY, translating into a robust 2-year CAGR of 21%.- Market Share: The company outperformed the overall industry and private sector, resulting in a 70 bps increase in our market share at the overall level to 12.1%, a new milestone for us, and a 40 bps gain within the private sector, taking our share to 17.5%, the exchange filing said.
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- Value of New Business (VNB) for Q1 FY26 stood at Rs 809 crore, a growth of 12.7% YoY and a 2-year CAGR of 15% with new business margins improving to 25.1%.
- Assets under Management (AUM) stood at Rs 3,55,897 lakh crore as on June 30, 2025, an increase of 15% YoY.
ADVERTISEMENT - Persistency: Persistency metrics remained healthy, with 13th and 61st month persistency at 86% and 64% respectively. 61st month persistency improved across cohorts, supported by stronger retention in long-term savings products.- Embedded Value (EV) increased to Rs 58,355 crore, with an operating RoEV of 16.3% on a rolling 12-month basis.
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Commenting on the company's Q1 earnings, Vibha Padalkar, Managing Director and CEO of HDFC Life, said that the first quarter began on a strong note, with healthy growth across topline, value of new business, and steady margins."We outperformed both the overall industry and the private sector, resulting in a 70 bps increase in our market share at the overall level to 12.1%, a new milestone for us, and a 40 bps gain within the private sector, taking our share to 17.5%. Moreover, over 70% of new customers acquired in Q1 were first-time buyers with HDFC Life, underscoring our customer acquisition strength and deepening presence across Tier 1, 2, and 3 markets," she said.
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Also read: Hero MotoCorp among 6 stocks with White Marubozu Pattern on July 15
"While the external environment remains dynamic, our fundamentals have held strong, anchored in a balanced product mix, a diversified distribution footprint, and a consistent focus on innovation, customer centricity and disciplined execution. Our aspiration is to continue to outpace industry growth whilst sustaining our position as a market leader amongst the top 3 in India,' she further added.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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