HDFC Life Q2 Results (October 15): Profit Rises 13.6% to ₹508 Crore as VNB Grows 14.8%

HDFC Life’s July-September quarter came in steady rather than spectacular. The HDFC Life Q2 results, approved by the board on October 15, 2026, show standalone net profit of ₹508.00 crore, up about 13.6% from ₹447.15 crore a year earlier. The more important number for a life insurer, the value of new business (VNB), grew 14.8% in the quarter. That is faster than premiums, which is what you want to see.

There’s one wrinkle. Profit was lower than in the June quarter, and the regulator is reworking how insurance distribution gets paid. We’ll come to both.

HDFC Life Q2 results in numbers

The figures below are standalone and come from the company’s results filing on NSE (stated there in ₹ lakh, converted to crore here). Growth rates are our own arithmetic.

• Net premium income: ₹21,727.37 crore, against ₹18,777.31 crore a year ago, up about 15.7%.
• First-year premium: ₹3,926.66 crore, up about 9.7% from ₹3,579.46 crore.
• Renewal premium: ₹11,419.87 crore, up about 10.5% from ₹10,337.11 crore.
• Single premium: ₹7,055.96 crore, up about 31.4% from ₹5,369.95 crore.
• Net profit: ₹508.00 crore, against ₹447.15 crore a year ago and ₹611.42 crore in the June quarter. Sequentially, that’s a fall of about 16.9%.
• Consolidated net profit: ₹521.60 crore, against ₹448.29 crore a year ago, up about 16.4%. This is why some reports quote a ₹522 crore figure.

Why VNB matters more than profit here

A life insurer’s quarterly accounting profit says little about the new business it wrote in that quarter. VNB is meant to estimate the value of the policies sold in the period. If you want the longer explanation, our piece on APE and VNB walks through it.

According to the company’s press release and investor presentation, Q2 annualised premium equivalent (APE) grew 13% and Q2 VNB grew 14.8%. For the half year, the figures were:

• Total APE of ₹8,245 crore, up 11% from ₹7,413 crore.
• VNB of ₹2,037 crore, up about 12.1% from ₹1,818 crore.
• New business margin of 24.7%, against 24.5% a year ago.
• Profit after tax of ₹1,119 crore, up about 12.7% from ₹994 crore.

So margins held, and value grew slightly ahead of volume. Retail protection grew 33% in the half year, and its share of individual APE rose to 8% from about 7%.

The balance sheet and the softer spots

Indian embedded value stood at ₹66,461 crore at the end of September, up 12% from ₹59,540 crore. The rolling 12-month operating return on embedded value was 14.9%, a little lower than 15.8% a year ago. Assets under management were ₹4,09,673 crore, about ₹4.1 trillion.

Persistency gives a mixed read. The 13th-month ratio slipped to 83% from 86%, which means a few more customers dropped policies after the first year. The 61st-month ratio improved to 66% from 62%. The solvency ratio was 180%, up from 175% a year ago but below 185% at the end of June.

Other board decisions

The board also gave in-principle approval to raise up to ₹500 crore through subordinated non-convertible debentures on a private placement basis. It approved setting up an insurance office at GIFT IFSC in Gujarat, which still needs approvals from IRDAI, the IFSC Authority and shareholders through a postal ballot.

What we’re watching

MD and CEO Vibha Padalkar noted that IRDAI has released consultation papers on the economics of insurance distribution, proposing significant changes for the industry. That’s the big unknown for every listed insurer, not just HDFC Life. For a peer comparison, see our write-up on ICICI Prudential Life’s Q2. And our guide on how to analyse quarterly results covers how to read filings like this one.

Disclaimer: This article is for information only and is not investment advice or a recommendation to buy or sell any security. Figures are from the company’s exchange filings linked above. Consult a SEBI-registered investment adviser before making investment decisions.