HDFC Life Q2 Results: Net Profit Rises 3%, Net Premium Income Up 14%
HDFC Life Insurance Co.’s standalone net profit rose 3% year-on-year in the July-September quarter, with the insurer posting a bottom-line of Rs 448 crore in the quarter ended September 30, 2025. In the year-ago period, the company posted a net profit of Rs 435 crore.
Net Premium Income Up 13.6%
The net premium income during the quarter under review climbed 13.6% year-on-year to Rs 18,871 crore, compared to Rs 16,613.7 crore in the corresponding quarter of the previous fiscal. This growth in net premium income is a positive sign for the company, indicating an increase in demand for its insurance products. To know more about life insurance products, click here.
Asset Quality and Gross Non-Performing Assets
In terms of asset quality, the gross non-performing assets stood at 0.07%, as against 0.10% in the year-ago period. This improvement in asset quality is a testament to the company’s effective risk management strategies. For more information on asset quality management, visit our website.
Annualised Premium Equivalent and Value of New Business
The company reported an annualised premium equivalent of Rs 6,471 crore, marking a 10% year-on-year growth, while the value of new business rose by 10% YoY to Rs 1,818 crore. However, VNB margins remained little changed at 24.5%. To learn more about annualised premium equivalent, click here.
Solvency Ratio and Persistency Ratio
HDFC Life’s solvency ratio increased to 175%, compared to 181% in the year-ago quarter. The 13th month persistency ratio stood at 86%, whereas the 61st month persistency ratio improved to 62%, reflecting the underlying product and tier mix. For more details on solvency ratio, visit our website.
Managing Director and CEO’s Statement
‘The recent GST revisions are a constructive structural shift aimed at simplifying compliance and improving affordability. We have ensured that the full benefits of the GST exemption are passed on to our customers. With product pricing now more attractive to customers across segments, we expect to see stronger demand over the medium to long term’, said Managing Director and CEO Vibha Padalkar. To know more about GST revisions, click here.
Outlook and Growth Potential
Padalkar added that as the external environment evolves, the company remains confident of the long-term growth potential of life insurance in India. ‘The recent GST reform, while necessitating some recalibration for industry stakeholders, is a structurally positive step – it makes life insurance products more affordable for customers. We remain optimistic about our growth trajectory for H2, with sustained demand across segments and improving consumer sentiment.’ For more information on life insurance industry trends, visit our website.
Stock Price Movement
Shares of HDFC Life closed 2.37% higher at Rs 761.15 apiece on the NSE, compared to a 0.71% rise in the benchmark Nifty. The share price has risen 23.35% year to date and 6.57% in the last 12 months. To stay updated with the latest Nifty news, click here.
Conclusion
In conclusion, HDFC Life’s Q2 results indicate a positive growth trajectory for the company, with an increase in net premium income and improvement in asset quality. The company’s confidence in the long-term growth potential of life insurance in India is a testament to the industry’s resilience and potential for growth. For more information on life insurance industry outlook, visit our website.